Marijuana MSO Planet 13 recovers $2.1M more from former bank alternative

Las Vegas-based marijuana multistate operator Planet 13 says it recovered another $2.1 million in cash plus real estate as part of a dispute with a former banking partner it claims “embezzled money from” its accounts.Planet 13 said in a news release that it has been attempting to claw back money since last year from El Capitan Advisors, an investment consultant the MSO retained in 2021 “for cash management services.” ADVERTISEMENT According to the New Mexico-headquartered Association for Cannabis Banking, El Capital Advisors emerged as a banking alternative for marijuana industry operators shut out from traditional financial institutions because the plant is illegal at the federal level.

Congress has not yet passed banking protections such as the SAFER Banking Act despite years of trying and widespread popular support.In late 2023, Planet 13 noticed “missing funds and fraudulent bank statements” that led to a lawsuit accusing El Capitan of “misappropriating millions of dollars.” In a separate dispute, Los Angeles-based investment firm Casa Verde Capital won a $35 million judgment against El Capitan, which led to $5.5 million of Planet 13’s money being frozen, beginning in 2023.

That money has since all been recovered, Planet 13 said.In addition to a total of $5.5 million in cash, Planet 13 is also acquiring real property valued at $5 million that it plans to sell, according to the release ADVERTISEMENT Planet 13 is still pursuing a lawsuit “against El Capitan and (founder and CEO) Andrew Nash seeking approximately US$10.3 million,” the MSO noted in its release.

El Capitan and Nash did not file a response to Planet 13’s complaint, leading to a default judgement, according to the release....