California, Paul King lords over a supposedly booming
cannabis farm called Cannafornia.
But in South Florida, a recently filed lawsuit accuses the Sunny Isles Beach-based entrepreneur of reigning over an insolvent marijuana business and raiding corporate funds to buy himself two luxury condos in Miami Beach and Miami’s Brickell neighborhood.
Cannafornia CEO Paul King, SLS Brickell (top) and Fontainebleu Miami Beach
For instance, King
transferred $921,200 from New Wave’s corporate account to an
entity called 1401 Investments 500, that then used the funds
toward the purchase of a unit in SLS Lux Brickell at 801
South Miami Avenue in Miami, according to the suit. The SLS
Lux condo was purchased for $997,900 on April 16, 2018.
A year later, King made another transfer for $775,000 to an entity called 803 Investments Inc. that bought a unit in the Fontainebleau Sorrento tower at 4391 Collins Avenue in Miami Beach for that same amount on Aug. 22, 2019, according to the lawsuit.
King is president and manager of 1401 Investments 500 and 803 Investments, respectively, according to Florida corporate records.
“King made the 1401 Transfers and the 803 Transfers with the actual intent to defraud his creditors, including GIA,” the lawsuit states. “King made the 1401 Transfers and the 803 Transfers at a time when he was insolvent and without receiving reasonably equivalent value in return.”
Gia Investments alleges King and California New Wave defaulted on the corporate note by failing to pay it when the loan matured on Dec. 31, 2019. In addition, King refused to mediate the dispute after Gia Investments demanded full payment last month, the complaint states.
Attached to the lawsuit is an April 1 letter from King’s lawyer, Boren, asserting his client has evidence the promissory note was forged and void. “You plainly have sufficient information at this time with which to conclude that there is no probable cause for you or GIA to pursue a meritless lawsuit,” Boren wrote. “Accordingly, any attempt by GIA to file a lawsuit that includes knowingly false allegations will be deemed to be for an improper, fraudulent, oppressive, and/or malicious purpose.”