Authored By: Teri Buhl

Original Article with supporting documents
https://cannabislaw.report/questionable-doj-conduct-comes-to-light-in-cannabis-company-criminal-case-fusion-pharm/

Veteran DOJ prosecutor Ken M. Harmon thought he had scored a big criminal case against two cannabis businessmen for the Department of Justice in the early days of pot stocks trading on U.S. stock exchanges.

Ken Harmon

He personally led a raid of Colorado based Fusion Pharm in 2014 off a warrant that said the DOJ thought the company was, amongst other things, really growing and selling cannabis and booking it as revenue for their Pharm Pods products which would mean Fusion Pharm was nothing more than a publicly traded Ponzi Scheme that was making false statements about their financials in filings with regulators.

The SEC subsequently halted the stock for two weeks in mid-2014 and eventually in September 2016 the two Colorado men who built the company, Scott Dittman and William Sears, were indicted on multiple charges of conspiracy to commit securities fraud, wire fraud, and mail fraud.

 

Scott Dittman Explains Pharm Pods Video

Dittman and Sears are set to be sentenced this week and are facing years in jail while at the same time filing motions with the Colorado Federal Judge, William J. Martinez, showing some alarming behavior by the DOJ prosecutor Ken Harmon which was discovered after they had made plea deals.

In 2016 Assistant United States Attorney (AUSA) Ken Harmon was able to freeze Dittman and Sears funds and threatened that their families would lose their homes if they didn’t cooperate with authorities. The government estimated the securities fraud constituted $US12 million and Sears had $US9 million in an account for them to grab off of stock sales.

Harmon was confident he had a rock star case. But now, new court records show behind the scenes the DOJ’s case was falling apart.  Issues included the FBI agent, Kate Egan-Funk, lying about her credentials as a registered CPA in Colorado, to obtain the initial raid warrant.