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Former Eaze CEO Facing Bank Fraud Charges

Jim Patterson is expected to plead guilty in court

Federal prosecutors will charge the former CEO of cannabis technology and delivery platform Eaze in connection with a case against two businessmen who allegedly duped banks into processing $100 million worth of illegal credit and debit payments, Law360 reports.

Eaze’s former CEO Jim Patterson — who stepped down as CEO in 2019 and later left the company — is expected to plead guilty tomorrow to the undisclosed charges. Notably, Eaze was not charged and a representative said the company has been cooperating with investigators.

The case centers around businessmen Ruben Weigand and Hamid Akhavan, who are accused of conspiracy to commit bank fraud in a “transaction laundering scheme,” Law360 reports, citing court records. The men argued the case against them is invalid because officials have not alleged an intent to harm or steal from banks, and because the money involved was only transferred through banks, not actually acquired from the banks. But in August, U.S. District Judge Jed Rakoff said that argument “borders on the frivolous.”

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