Cannabis Companies File Suit Against Former Financial Advisor

Last Friday, plaintiffs Wykanush Ventures, LLC and TCAIXP LLC filed suit in the Western District of Washington against defendants Karstan Walker, Kristopher Walker, and Ronald Yauchzee over allegations that Karstan Walker committed acts while serving as their financial advisor that were intended to benefit her marital community.

Wykanush is a company in Multnomah County, Oregon, that owns and operates a commercial cannabis grow facility. They allegedly contracted one of the defendants, Karstan Walker, to do their financial management services along with plaintiff TCAIXP and two other cannabis companies located in Oregon.

Under the contract between the plaintiffs and Walker, she purportedly had a host of responsibilities such as maintaining financial records through accounting software, receiving revenue and paying bills, depositing and accounting for checks, and working with creditors. The plaintiffs were under the belief that Walker was an “experienced, reliable and qualified bookkeeper familiar with accounting principles, managing accounts and methodology,” since she represented herself as such.

After a few months of financial management, Wykanush was notified that they were several months behind in both rent payments and electric payments. Since Wykanush’s owner, Laszlo Bagi, knew that Wykanush had “generated sufficient revenue to pay the rent and utilities,” he became confused and said he confronted Walker, who presented him with falsified records that showed the accounts actually had been paid.

Upon communicating once again with the rental and electrical companies, Bagi found out that the records had been falsified and no payments had in fact been made. He again confronted Walker, who “suddenly quit with no further explanation.”

Throughout her time with the plaintiffs, the plaintiffs alleged that Walker was spending beyond her means. This included “purchasing multiple vehicles and a boat for herself and her husband, purchasing a vehicle for her father and co-defendant Yauchzee… purchasing a new home… a bathroom remodel… and other expenditures that seemed to exceed her income.”

The plaintiffs believe that Walker “intentionally, fraudulently and knowingly converted, stole or embezzled” $94,945.50 in electrical payments, $146,213.68 in rental payments, and $11,275 in additional payments from Wykanush alone. Walker is also believed to have used the TCAIXP bank account to pay off her student loan. In addition to the stolen money, the defendant failed to maintain proper records, lied about payment timing, did not file for tax returns, in addition to other offenses.

The complaint details counts of embezzlement, conspiracy, conversion, fraud, misrepresentation, breach of contract and fiduciary duty, unjust enrichment and constructive trust. The plaintiffs are requesting a trial by jury, favorable judgement, pre and post-judgement interest, and damages.

The plaintiffs are represented by Landerholm.