Rapper’s weed company accused of being a $62 million scam fueling spending on luxury cars and strippers

A rapper known as BigRigBaby and his business partner have been accused by federal regulators of running a “Ponzi-esque scheme” to raise nearly $62 million from investors in a bogus cannabis company.

Patrick Earl Williams, 34, and Rolf Max Hirschmann, 52, were charged in a civil complaint filed this week by the Securities and Exchange Commission.

According to the complaint, Williams, better known online as BigRigBaby, and Hirschmann chased away investors in a fake marijuana farm and spent much of the money on “payments to women” and personal expenses such as luxury cars, jewelry and adult entertainment. .

The duo “reportedly had no real business, no product, and no company, yet they promised investors everything and delivered nothing,” Michele Wein Layne, director of the SEC’s Los Angeles regional office, said in a statement.

The SEC obtained an emergency injunction to shut down the alleged “ongoing offering fraud and Ponzi scheme” of Integrated National Resources Inc, which does business as WeedGenics.

WeedGenics described itself as a “vertically integrated” manufacturer of cannabis products

“This action demonstrates that, despite the defendants’ extensive efforts to avoid detection, the SEC is able to uncover fraud to protect investors,” Layne said.

Attempts to reach Williams and Hirschmann through WeedGenics were unsuccessful, and court records indicated no attorney representing the duo.

Since at least June 2019, Hirschmann and Williams have been promising investors a whopping 36 percent return on funds they said would go toward expanding WeedGenics’ growing facilities in California and Nevada, the SEC said in a lawsuit.

“However, in reality, this was all a sham,” the filing added.

The SEC said the pair spent about $16 million of investor money making payments to other investors, creating the illusion that their venture was generating income.

Williams received about $8 million in investor funds, of which about $625,000 was spent on restaurants, jewelry, adult entertainment and other personal expenses, the complaint said.

Williams received about $8 million in investor funds, about $625,000 of which was spent on restaurants, jewelry, adult entertainment and other personal expenses, the SEC said.

The complaint included this breakdown of how Williams and Hirschmann allegedly spent the investors’ money

Williams spent more than $18,000 promoting his music career as BigRigBaby, SEC says

Williams, who lives in Florida, also spent more than $18,000 promoting his music career as BigRigBaby, including payments to producers, DJs and iHeartMedia, the SEC alleged.

Further, according to the complaint, approximately $1,976,000 of the investors’ money was transferred to Williams’ personal bank accounts or withdrawn in cash.

Hirschmann lives in Idaho and, according to regulators, used the false name “Max Bergmann” while communicating with potential investors.

Hirschmann and its entities received approximately $15,673,000 in investor funds, according to the filing, of which approximately $4.8 million was spent on real estate and $2.4 million on luxury cars.

He also used about $3.2 million of investor funds to make credit card payments, and $913,000 was withdrawn in cash, the SEC said.

WeedGenics described itself on its website as a “vertically integrated” manufacturer of cannabis products.

The website claims the company has a 52,000 square foot “growing campus” in Las Vegas and is undergoing a “massive expansion” with a new growing facility in Adelanto, California.

In reality, the SEC says, neither facility was real and the company produced nothing.

A hearing in the case is scheduled for June 2 to consider whether to issue a preliminary injunction and appoint a permanent receiver.