In Salinas,
California, Paul King lords over a supposedly booming
cannabis farm called Cannafornia.
But in South Florida, a recently filed lawsuit accuses the
Sunny Isles Beach-based entrepreneur of reigning over an
insolvent marijuana business and raiding corporate funds to
buy himself two luxury condos in Miami Beach and Miami’s
Brickell neighborhood.
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Cannafornia CEO Paul King, SLS Brickell (top) and Fontainebleu Miami Beach |
For instance, King
transferred $921,200 from New Wave’s corporate account to an
entity called 1401 Investments 500, that then used the funds
toward the purchase of a unit in SLS Lux Brickell at 801
South Miami Avenue in Miami, according to the suit. The SLS
Lux condo was purchased for $997,900 on April 16, 2018.
A year later, King made another transfer for $775,000 to an
entity called 803 Investments Inc. that bought a unit in the
Fontainebleau Sorrento tower at 4391 Collins Avenue in Miami
Beach for that same amount on Aug. 22, 2019, according to
the lawsuit.
King is president and manager of 1401 Investments 500 and
803 Investments, respectively, according to Florida
corporate records.
“King made the 1401 Transfers and the 803 Transfers with the
actual intent to defraud his creditors, including GIA,” the
lawsuit states. “King made the 1401 Transfers and the 803
Transfers at a time when he was insolvent and without
receiving reasonably equivalent value in return.”
Gia Investments alleges King and California New Wave
defaulted on the corporate note by failing to pay it when
the loan matured on Dec. 31, 2019. In addition, King refused
to mediate the dispute after Gia Investments demanded full
payment last month, the complaint states.
Attached to the lawsuit is an April 1 letter from King’s
lawyer, Boren, asserting his client has evidence the
promissory note was forged and void. “You plainly have
sufficient information at this time with which to conclude
that there is no probable cause for you or GIA to pursue a
meritless lawsuit,” Boren wrote. “Accordingly, any attempt
by GIA to file a lawsuit that includes knowingly false
allegations will be deemed to be for an improper,
fraudulent, oppressive, and/or malicious purpose.”