Pair sentenced for convincing investors to buy into fake medical marijuana operation
Two Greater Cincinnati men have been given probation for defrauding investors by, in part, convincing them to invest in a fake medical marijuana grow operation.
Aaron Pitman, 35, of Morrow and Ryan Goldschmidt, 39, of Cincinnati were sentenced last week in Warren County Common Pleas Court. The pair pleaded guilty in September to counts including aggravated theft, telecommunications fraud and unlawful securities practices.
They were ordered to five years probation, 90 days in jail and to pay $796,000 in restitution, the Ohio Department of Commerce said in a press release Thursday.
Pitman and Goldschmidt were indicted in October 2022 following an investigation by the Ohio Department of Commerce and the Ohio Bureau of Criminal Investigation.
Officials say the pair defrauded investors through multiple businesses and made misrepresentations to several victims in order to persuade them to invest in a fake medical marijuana grow operation and a CBD oil cartridge manufacturing business.
Neither Pitman nor Goldschmidt were licensed to sell securities to investors in Ohio, nor did they have previous experience in the medical marijuana or CBD oil businesses, despite their assertions to the contrary.
The pair deposited $796,000 in investor funds into bank accounts they controlled and used those funds for personal expenses like paying off legal bills and making payments to friends, officials said.
Goldschmidt's jail sentence was deferred for six months pending the payment of his court-ordered restitution. He made a partial restitution payment of $150,000 prior to his sentencing.
Pitman is currently serving time in the Warren County Jail. He was ordered to serve 45 days with the remaining 45 days suspended pending his restitution payments. Judge Donald Oda ordered that Pitman's $50,000 bond be released and used towards restitution to the victims.
Officials are encouraging potential investors to call the commerce department's investor protection hotline at 877-683-7841 to avoid fraud.
This article originally appeared on Cincinnati Enquirer: Ohio men sentenced for investor fraud involving fake pot business
