An investor in a Globe medical marijuana dispensary is crying foul and demanding $1.1 million in a lawsuit filed in Pima County.
Kenneth Sobel sued Globe Farmacy alleging the investment he made to get the dispensary up and running was never repaid and a βsurreptitious side dealβ between then-Globe City Councilman Desmond Baker and the dispensaryβs board members bilked Sobel out of his place on the board.
The Jan. 21 lawsuit asks Pima County Superior Court to order Globe Farmacy to pay Sobel at least $1.1 million for the initial investment, breach of contract, loss of future profits, and services rendered.
Globe Farmacy, 200 N. Broad Street, is the only state-licensed medical marijuana dispensary in Globe, which is in Gila County about 100 miles northeast of Tucson. A call to the dispensary for comment was not returned.
Sobel, a San Diego-based attorney who ran the Green Halo dispensary in Tucson until last year, said he put up a $125,000 loan in September 2012, spearheaded the dispensaryβs application process, and advised Globe Farmacy as it set up shop.
All told, Sobel said he and his business partner Murray Stein invested more than $275,000 in the dispensary, but none of the money was repaid.
Sobel alleged Baker and the board members made a deal without Sobelβs knowledge to oust Sobel and Stein from the board shortly after the dispensary opened for business in early 2013.
Baker served on the Globe City Council during the dispensaryβs application process, the Arizona Silver Belt newspaper reported.
After Baker submitted an unsuccessful application for his own dispensary, he recused himself from any decisions relating to Green Farmacyβs application, the newspaper reported.
Arizona Corporation Commission records show Sobel was removed as president in April 2013 and replaced with Mark Siegel. Stein was removed as treasurer and replaced with Baker.
In his lawsuit, Sobel said he was unaware the changes were planned, which is a violation of the firmβs bylaws.
He asked the court to declare he was wrongfully removed and to reinstate him on the board.
Sobel filed the lawsuit in Pima County because of an agreement among the parties and that transactions related to the dispensary were to be completed in Pima County.
