Sports legends Mike Tyson and Ric Flair have launched a major legal battle against their former cannabis business partners, accusing them of a multi-million dollar fraud scheme involving money laundering and extortion.
Allegations of a "Brazen RICO Conspiracy"
In a detailed 76-page lawsuit filed last week in an Illinois court, attorneys for the heavyweight boxing icon and wrestling superstar allege a complex criminal conspiracy. The legal action names former executives of the marketing company Carma – Chad Bronstein, Adam Wilks, and Nicole Cosby – as well as an individual shareholder.
The plaintiffs, which include Tyson, Flair, Carma itself, and the hemp brand LGNDS, accuse the defendants of wire fraud, embezzlement, money laundering, extortion, securities fraud, and self-dealing. The filing describes a "brazen RICO conspiracy" that allegedly enriched the defendants by tens of millions of dollars.
Lavish Spending on Private Jets and Yachts
The lawsuit contains striking claims of misused company funds. It alleges that Bronstein and Wilks treated Carma as a "personal piggy bank," spending over $1 million on unauthorised luxuries.
This spending reportedly included private jet travel, costs for Bronstein's personal yacht, renovations to his home, a mortgage payment for Wilks' residence, and lavish entertainment. The filing also claims Bronstein misappropriated roughly $15,000 to buy a watch for Los Angeles Rams head coach Sean McVay without company approval.
Iconic Brands and Secret Kickbacks
The case centres on deals where Tyson and Flair licensed their names for cannabis products, such as Tyson's "Mike Bites" – THC gummies shaped like the ear of his former opponent, Evander Holyfield. The lawsuit claims the defendants improperly sold licensing rights.
In one instance, Adam Wilks is accused of receiving a secret "kickback" from a vaporizer company for ignoring its unauthorised use of Carma's intellectual property.
Defendants Deny All Claims
The accused have fiercely rejected the allegations. An attorney for Adam Wilks, Terry Campbell, told Front Office Sports the claims were "without substance" and a tactic to coerce payment. He vowed to fight the "meritless allegations."
Jonathan Cyrluk, representing Chad Bronstein and Nicole Cosby, called the complaint "fiction dressed up as a lawsuit." He alleged the plaintiffs tried to intimidate his clients with settlement demands resembling a "shakedown" before filing. Cyrluk added his clients are prepared to "knock out this meritless lawsuit in court."
Seeking Justice and $50 Million
The plaintiffs are seeking $50 million in damages and legal fees and have requested a jury trial. This is not Carma's first legal dispute with these executives; the company previously sued Bronstein and Cosby over alleged breaches related to a partnership with the late Hulk Hogan's "Great American Beer" brand.
The outcome of this high-profile lawsuit could have significant repercussions for the burgeoning celebrity cannabis endorsement market and corporate governance within the industry.
