On Tuesday S.S.L. Investments, LLC filed a complaint in the Central District of California against Orochem Technologies, Kazmira, LLC and the companies’ executives alleging violations of RICO and fraud.
According to the complaint, S.S.L. is a California limited liability company in the business of processing and wholesale distribution of THC oil for Original Balboa Caregivers, an entity licensed to conduct business in the cannabis industry by California. Further, the complaint states that S.S.L. managed and operated Original Balboa Caregivers’ 100,000 square-foot production facility in California.
The complaint states that the defendant, Orochem Technologies, held themselves out as a biotechnology organization that utilized patented systems to purify and concentrate biopharmaceutical, chemical and food products. Further, the complaint alleges that Kazmira is a subsidiary of Orochem that operated a CBD production facility in Colorado. However, the complaint alleges that Orochem and Kazmira are merely alter egos of its executives Asha Oroskar, Anil Oroskar, Priyanka Sharma, Pulak Sharma and Gregory Rocklin and used as shells and conduits to conduct certain affairs.
S.S.L. alleges that in May 2018 it was approached by the defendants to install and operate a proprietary system to purify commercial quantities of THC Original Balboa Caregivers’ facility. The plaintiff further alleges that in subsequent meetings the defendants touted the success of their system to purify THC oil to levels of 90% or above and stated that they had successfully used the system in several other facilities including Kazmira’s facility in Colorado.
Relying on the representations made about the defendants’ technology, the plaintiff entered into a business venture with the defendants in which S.S.L. would supply the raw materials and capital and the defendants would install and operate the machinery to create 90% pure THC oil with no impurities in accordance with the California Specifications.
However, S.S.L. alleges that the defendants representations about their technology were fraudulent and the defendants were unable to produce a product that satisfied the required specifications. Additionally, the defendants repeatedly demanded that the plaintiff make additional payments for new technology and machinery costing S.S.L. millions of dollars despite the defendants’ never performing their obligations.
The complaint states that on August 30, 2019 the defendants terminated business with the plaintiff without over performing their obligations and the defendants removed their machines from plaintiff’s facility. S.S.L argues that the defendants intentionally misrepresented their capabilities and concealed information to defraud and scam the plaintiff out of millions of dollars. The plaintiff further states that the defendants’ actions caused severe reputational harm and caused Original Balboa Caregivers to cease operation.
Accordingly, S.S.L brings the present suit to recover restitution, general, punitive and treble damages pre- and post-judgment interest, attorney’s fees and costs alleging violation of RICO, conspiracy to violate RICO, fraud, fraudulent concealment, unlawful business practices and false advertising. The plaintiff is represented by Rosen Saba, LLP.
