Four men were charged last week in Gallatin county for allegedly defrauding investors, farmers, and the State of Montana out of millions of dollars while operating a hemp extraction business.
The state of Montana and Gallatin County Attorney allege a group involved with Texas-based CBD oil company Isotex Health engaged in a conspiracy including a ponzi scheme.
Two of the defendants are Gallatin county residents, the others reside in Texas and Washington state. Prosecutors allege the defendants used fraudulent financial documents and forged laboratory test results to acquire more than $6 million from investors and apply for a small business grant from the state of Montana.
Isotex entered into contracts with several farmers in eastern Montana to grow hemp, andleased a large industrial building in Libby, where the business CEO reportedly said they hoped to hire more than 100 employees to process hemp into CBD products. But prosecutors allege the company never produced or sold any actual products.
The state grant was never administered to the company. Lincoln county officials withheld the grant, which wasannounced days after the company was sued by investors and abandoned its facility in Libby.
Preliminary hearings in the case are scheduled for early July in Gallatin County.