Traders in unsuccessful Portland CBD startup Sentia Wellness sued Oregon entrepreneur Nitin Khanna and a number of of his associates this thirty day period, alleging they perpetrated a $60 million securities fraud by making untrue statements about their organization and disguising the company’s monetary circumstance.

The lawsuit’s accusations are the hottest in a string of scandals that have dogged Khanna for years, which includes a rape allegation, manufacturing failures and a infamous real estate plan.

Plaintiffs in lawsuit, submitted Jan. 6 in Multnomah County Circuit Court docket, incorporate an investment fund run by Boris Jordan, chairman of Curaleaf, one of the nation’s most important marijuana corporations. Curaleaf acquired one more company operate by Khanna, Portland-based Cura Cannabis, in an all-inventory deal well worth about $400 million when it shut in 2020.

This month’s lawsuit pits Khanna and Jordan from just one a further.

In the lawsuit, very first described Tuesday by the Portland Company Journal, Jordan’s expenditure company and other Sentia backers accuse Khanna and his associates with scamming them by hiding the Portland company’s true economic issue and by falsely boasting that Goldman Sachs was doing the job to raise income for the business.

“Sentia’s founder and former government chairman Nitin Khanna fully commited securities fraud and violated Oregon securities regulations by applying untrue statements and misleading omissions of content info to solicit and induce the plaintiff investors to buy over $74 million in debentures in Sentia,” the lawsuit alleges.

Vivek Kothari, an attorney symbolizing Khanna, did not promptly react to a request for remark Tuesday. He informed the Organization Journal that Sentia failed for the reason that of adjustments in the regulatory surroundings and the pandemic’s effects on retail sales and stated the plaintiffs in the lawsuit are “sophisticated investors” who understood what they have been getting into.

“We search ahead to shedding a lot more light-weight on what transpired at Sentia and the questionable business techniques of these traders, two of whom also sat on Sentia’s board and permitted its finances, expending and direction,” Kothari reported.

Sentia manufactured CBD, or cannabidiol,…