The lawsuit alleges that Mike Tyson’s brand of celebrity cannabis caused fraud

Legendary boxer Mike Tyson and wrestling star Ric Flair’s efforts to launch celebrity marijuana products have resulted in “serious arrests … involving criminal fraud, embezzlement (and) embezzlement,” the pair alleged in a federal lawsuit filed last month.

Tyson and Flair are the lead plaintiffs in a 76-page complaint filed Dec. 19 in U.S. District Court in Illinois that accuses four former executives of Carma, a Chicago-based company that is also the plaintiff, of “defrauding” celebrities and using the company as “their personal money.”

The case is accused of 21 separate counts of fraud and breach of contract. It is seeking damages, legal costs and expenses “in excess of $50 million.”

Additionally, according to the suit, former executives at Carma made “unauthorized” deals to sell celebrity endorsements, including a vape manufacturer and a licensed California cannabis grower, which “caused financial losses” to Carma “but lined (their) pockets”.

Mike Tyson, Ric Flair and Future say celebrity weed brands gone wrong

The cases named as defendants:

• Chad Bronstein, former chairman and president of Carma, which owned a yacht near Flair’s in Tampa.
• Adam Wilks, former CEO of Carma
• Nicole Cosby, who is accused in this case, was a board member before she became a law and licensing officer
• James Case, a Carma shareholder who received shares “for free” from Bronstein

No attorney information for the four defendants was available Thursday, according to court records.

The defendants have yet to file a response in court, records show.

Attempts to contact Tyson, the current CEO of Carma and Flair were not immediately successful.

A fourth plaintiff, Miami-based “global hemp company” LGNDS, bought the rights to use Tyson’s image in “hemp products, mushroom products, nicotine products, kava products, and other merchandise, such as shirts, pants, sweaters and shoes.”

The case also mentions singer Future, born Nayvadius DeMun Cash, as a celebrity whose rights to obtain licenses that Carma’s ex-writers are said to have sold without the celebrity’s consent.

Future, who owns a Florida-based marijuana brand called EVOL by Future, was not named as a plaintiff in the lawsuit.

Tyson, Flair accuses cannabis branding partners of selling them, fraud

The lawsuit alleges a broad pattern of misconduct, including loan fraud and unauthorized financing with the Cleveland Cavaliers NBA Franchise and a “mass” of unauthorized licenses that began shortly after Tyson, Bronstein and Wilks founded Carma HoldCo, “also known as Tyson 2.20, in 2021.”

The company used Tyson’s status and intellectual property to market products, including “cannabis pre-rolls, vape cartridges, and hemp gummies.”

According to the lawsuit, Bronstein and Wilks told investors that Carma, valued at $80 million, was actually worth $120 million — and sold their shares in the company “for a profit in excess of $1 million.”

The lawsuit also accuses Bronstein, Wilks and Case of soliciting personal gifts, including $50,000 Rolex watches, from Carma’s business partners in lieu of the usual fees for celebrity licenses.

The lawsuit accuses Bronstein of setting up a new company to market Flair’s likeness, called Ric Flair Drip Inc., to which Flair was tricked into signing away his intellectual property.

Bronstein then sold a majority of the company to Carma but cut Flair out of the deal, the suit says.

The defendants also paid themselves exorbitant amounts of money and lavished themselves with exorbitant bonuses, according to the lawsuit.

The cannabis connection in Northern California

According to the lawsuit, Wilks also served as CEO at Captor Capital, a cannabis investment firm that held stakes in Northern Emeralds, a premium cannabis brand based in Northern California, and DomPen, a vape company.

In August 2022, Carma and Northern Emeralds signed an agreement that would see the cannabis firm market and produce Tyson 2.0-branded cannabis flower and pre-roll part in exchange for payments, according to the lawsuit.

However, “From 2022 to 2025, Northern Emeralds failed to pay CARMA more than $1.25 million in accordance with the agreement,” the lawsuit states.

The lawsuit says this is because Wilks acquired equity in Northern Emeralds to offset payments for his role in Carma.

Instead, he loaned Carma cash from Northern Emeralds, which still owes “more than $140,000” in unpaid loans.

Northern Emeralds did not immediately respond to a request for comment.

Does celebrity cannabis work?

Celebrity brands have had mixed success in the cannabis industry.

As MJBizDaily reported in 2023, celebrity companies sold traditional marijuana strains for “healthy money” that year.

However, Flair products cost less to sell than regular products, according to Headset data.

That may be due to the conventional wisdom that consumers are more concerned about product quality and cost – and the elusive concept of “authenticity” – than the popular name printed on the package.

Still, Tyson, a Las Vegas resident, seems to have put more effort than others into promoting a diverse line of marijuana products, including an appearance at MJBizCon.

These include Ear Bites, a sly reference to his infamous 1997 heavyweight title fight with Evander Holyfield, in which Tyson bit off part of Holyfield’s ear.