Mike Tyson and Ric Flair Launch Lawsuit Over Alleged Embezzlement Scheme
Mike Tyson, the former heavyweight boxing champion, is making headlines once again, this time for filing a lawsuit that suggests he was a victim of an embezzlement scheme involving his former cannabis licensing company, Carma HoldCo Inc. The lawsuit, which also includes former pro wrestler Ric Flair as a plaintiff, raises serious allegations against former executives working for the company.
The Lawsuit Details
How the Suit Came About
Tyson and Flair filed a 76-page lawsuit in Illinois, accusing former Carma executives, including Chad Bronstein, Adam Wilks, and Nicole Cosby, of a RICO conspiracy. The claims stem from alleged criminal activities that include:
- Wire Fraud
- Embezzlement
- Money Laundering
- Extortion
- Securities Fraud
According to the lawsuit, the two famous plaintiffs argue that throughout their time at Carma, Bronstein and Wilks "treated CARMA as their own personal piggy bank."
Exorbitant Misuse of Funds
The plaintiffs allege that over $1 million was misappropriated for unauthorized expenses, which included:
- Personal travel on private jets
- Expenses for Bronstein’s yacht
- Renovations on Bronstein’s personal home
- Mortgage payments for Wilks’ residence
- Lavish entertainment costs and excessive bonuses
One particularly shocking claim includes the unauthorized purchase of a watch for Los Angeles Rams coach Sean McVay, costing approximately $15,000. This was reportedly done without McVay’s knowledge and was completed without company approval.
Legal Proceedings
The lawsuit is seeking $50 million in damages and legal fees, and a jury trial has been requested. Tyson and Flair are represented by the New York-based law firm Willkie Farr & Gallagher LLP.
Responses from the Defendants
Executive Denial
Terry Campbell, an attorney for the accused Adam Wilks, dismissed the allegations as “lacking substance.” He stated:
“These claims are as credible as the people they come from…This is nothing more than an attempt to spit out an earful of salacious headlines.”
Bronstein and Cosby’s attorneys have echoed these sentiments, arguing that the accusations lack credibility. According to attorney Jonathan Cyrluk:
“The complaint is fiction dressed up as a lawsuit…demanding millions of dollars and attempting to force others to surrender their Carma shares.”
They also stated that both executives had been subjected to intimidation tactics prior to the filing of the lawsuit.
Carma HoldCo’s Position
The current leadership at Carma HoldCo has taken its own measures, previously filing a lawsuit against Bronstein after his departure. They accused him and Cosby of stealing the "Real American Beer" brand idea featuring the late Hulk Hogan.
Alleged Breach of Employment Agreements
Carma alleges that Bronstein and Cosby violated their employment agreements by exploiting marketing strategies to fast-track the new beer brand, which prominently featured Hogan as its spokesperson.
Tyson’s History of Legal Disputes
This lawsuit is not Tyson’s first encounter with legal battles. Previously, he claimed that promoter Don King cheated him out of $14 million, alleging the boxing mogul had skimmed funds from fight purses as far back as 1988.
Conclusion
The unfolding saga around Tyson, Flair, and their former business associates highlights serious allegations of financial misconduct. As the case progresses, it will be interesting to see how the courts address these claims and what outcomes may arise for the parties involved.
For more information on this developing story, visit sources like Front Office Sports and NYP Post.
