An investment firm based in the UK is suing a CBD company that it invested in. The firm alleges that the California company misled investors to secure a $1 million loan.
Biosciences Enterprises is the company that has failed to pay back the investment it received after presenting false business activities to get the loan in the first place. Henley Finance has filed a lawsuit in federal court, believing that the company knowingly misrepresented its activities to secure the funding.
Biosciences Enterprises allegedly told Henley that they were a leading contract manufacturer in the hemp space, operating for three years to develop its niche in the CBD space as a supplier and that the company had contracts across North America.
Henley initially trusted the company and lent them $1 million through an account with Goyette, a California Law firm. The money was to be held in escrow and not transferred without the permission of Henley, but the funds ended up getting released anyway.
The UK firm is seeking $999,995 in the lawsuit, in addition to fees, interest, and damages.