Grover Beach marijuana shop stolen by partners, lawsuit claims

December 2, 2019

By KAREN VELIE

Besieged with allegations of pay-to-play, perjury, and illegal possession of marijuana for sale, the owners of 805 Beach Breaks in Grover Beach entered into an agreement to sell their business. And currently, a principal in the business alleges her partners, with assistance of city leaders, stole her portion of the marijuana retail store. [Cal Coast Times]

Fraud and theft are key issues raised in a lawsuit Wendy Cronin filed Wednesday in San Luis Obispo County Superior Court.

After proposition 64 passed in 2016, Cronin worried what would happen to her medical marijuana collective, The Herb Pantry, and came up with the idea of opening 805 Beach Breaks, Cronin said.

In late 2016, Cronin, Brian Touey and Erich Haas formed a partnership and began courting Grover Beach city officials to win one of three retail cannabis shop permits. At that time, Cronin was listed in city records as a principal in the business.

While Touey and Haas had the capital, according to the lawsuit, Cronin had the previous cannabis sales experience, which gave the company’s application more points for having a principal in the industry.

The lawsuit contends that in early 2018, Touey and Haas applied for a state license, without listing Cronin as a partner.

Wendy Cronin

Shortly afterwards, in mid-2018, Cronin filed a $15 million claim against Mayor John Shoals, the Grover Beach City Council, city attorney David Hale and City Manager Matthew Bronson, for omitting Cronin from the city’s business permits.

Even so, city officials are not listed in the lawsuit, which includes Haas, Touey and 805 Beach Breaks as defendants.

Meanwhile, allegations of criminal activity in the cannabis industry have plagued the South County city.

In Feb. 2019, Grover Beach Councilwoman Debbie Peterson resigned saying she could no longer be part of the city’s “pay-to-play insider’s game.” Peterson voiced concerns over allegations that some council members accepted bribes for their votes on cannabis retail store permits.

In March, deputies raided 805 Beach Breaks after discovering Touey was illegally growing cannabis in Santa Barbara County. Prosecutors charged Touey with felony perjury and two misdemeanor counts of illegal possession of marijuana for sale and illegal cultivation.

In a settlement with prosecutors, Touey agreed to give up his cultivation license and to pay $32,000, and the county agreed to drop all charges.

In August, Harvest Health & Recreation announced it had purchased 805 Beach Breaks.

Cronin is asking the court for a declaration that she was an owner of 805 Beach Breaks, for general and punitive damages, and for the cost of the suit.

“This action arises from Defendants’ wrongful and fraudulent actions, which were planned or orchestrated by Defendant Touey and Defendant Haas, in manipulating Plaintiff for their own benefit, to the harm and injury of Plaintiff,” according to the lawsuit.


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SLO_Children_at_play

I have never known a pothead to do anything consistently except smoke pot, and blame everything and everyone (except the pot) for their problems. Somehow things were going to be different once we made it legal and gave them business licenses? If California really wanted to legalize and tax something to help pay off the CalPers pension crisis (the $100 billion sized gorilla in the room that grows larger every day), they should have legalized prostitution. Now those ladies are some of the best business professionals I have ever met.


DocT

99% of the corruption can be blamed on the idiotic “permit” process, which guarantees that only super wealthy people with criminal records (propensity to bribe) qualify to get a license to sell, grow or process cannabis.


If they allowed the local folks who were doing this for years without drama or legal intrigue to get permits none of this would be an issue.


But when they purposely use the process to enrich themselves, county officials have no one to blame for this corruption other than themselves!


citizensoldier

Anyone remember this from last summer?:


” It is not known if any specific incident or ongoing investigation prompted the cannabis-focused episode of the FBI This Week podcast, though the bureau argued that as legalization spreads, “states should expect the corruption problem to increase.” ”


https://www.forbes.com/sites/tomangell/2019/08/16/fbi-seeks-tips-on-marijuana-industry-corruption/#4cc551224ca7


tomsquawk

when i studied law we spent time on sole prop. & corporate law; 5 minutes on partnerships because that’s what partners do. you don’t wanna be in one.


citizensoldier

ts,


The ONLY partnership I recommend is “marriage.”


Jorge Estrada

Consequences will likely weigh in to outlaw this lawless industry for SLO County. It’s OK to just say we can’t afford it. Then again SLO county is a target for more exploitation. Another example is the Santa Barbara County televised news: Prado Road, San Luis Obispo, Shelter and the perks. I wonder what other counties are promoting the homeless facilities in San Luis Obispo?


Lmo

What should we have expected, given the nefarious background of some of these people?