Investors awarded restitution of $2.5M in Colorado marijuana fraud case

Four investors who were defrauded by an illicit marijuana scheme in which a Colorado businessman illegally distributed MJ into various states have been awarded a total of $2.5 million in restitution by a district court judge.

According to a news release from Colorado’s 18th Judicial District Attorney in suburban Denver, the restitution was ordered after businessman Scott Pack was found guilty of racketeering, securities fraud, and other crimes after a three-year criminal case. In July, Pack was sentenced to 12 years in prison.

Judge Michael Spear ordered restitution in the amounts of:

  • $199,935 to Christof Raygot.
  • $299,935 to Pierre Raygot.
  • $950,000 to Kyle Kolb.
  • $1,050,000 to James Hay-Arthur.

Before Pack was indicted in 2017, he ran a Colorado-licensed cover business called Harmony & Green, which prosecutors said was used to illegally distribute marijuana in at least five states but never paid state taxes or recorded any legal sales.

Pack “scammed investors out of millions of dollars” to fund the operation, according to the news release.

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