Investors claim ‘looting’ at N.J. medical marijuana dispensary, sue to have independent manager run it – NJ.com

The board president of a medical marijuana dispensary in Hudson County should be removed for allegedly plunging the nonprofit $30 million in debt and diverting funds into a cannabis business in Israel, according to a lawsuit filed by investor-owners last week.

Secaucus Investors LLC, which won control of Foundation Harmony in a bitter arbitration battle in October, took the extraordinary step of asking for an emergency hearing in state Superior Court to appoint a “custodian” to oversee the daily operations and prepare it to be sold.

A court hearing on the request is scheduled for March 18.

If the request is granted, the move would oust Shaya Brodchandel, the former CEO and current board president, as well as board member Yehuda Meer. The lawsuit filed last Monday alleges Harmony has allowed taxes and bills to go unpaid, has hired family and friends for unnecessary work and defied arbitration and judicial rulings that ordered they cede control to and share all financial records with Secaucus Investors.

“Brodchandel and Meer have “looted and wasted Harmony’s assets, continue to perpetuate Harmony solely for their personal benefit, and have acted in an oppressive and fraudulent manner,” according to the lawsuit.

Harmony’s attorney Peter Slocum called the allegations “baseless” and

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