A top investor in one of San Luis Obispo County’s most prominent cannabis businessmen described him in a recent lawsuit as an “unscrupulous con man” who’s siphoned company funds, is in hot water with federal authorities, and should be removed as head of his businesses.
click to enlarge File Image Courtesy Of The City Of San Luis Obispo LEGAL FIGHT A top investor in the Natural Healing Center cannabis brand, which has plans to open new dispensaries in SLO (rendered here) and Morro Bay, is suing its founder over alleged misconduct.
Helios Dayspring, co-owner and founder of Natural Healing Center dispensary in Grover Beach, faces a civil lawsuit from 81-year-old William Szymczak—an early supporter and investor and a former director in the U.S. Department of Housing and Urban Development (HUD).
The lawsuit filed on Aug. 17 in SLO County Superior Court claims that Szymczak recently learned that the companies he invested at least $15 million into in 2018 were being “grossly mismanaged” by Dayspring—pointing to criminal investigations, late tax payments, and the alleged diversion of millions of dollars in company funds for Dayspring’s benefit.
Asserting fraud, breach of contract and fiduciary duty, and other claims, Szymczak is asking a judge to appoint a neutral receiver to take over company management until the litigation plays out. A court hearing on the motion is slated for Oct. 21.
“Unless a receiver is appointed, the companies cannot operate properly,” Szymczak’s lawyers argue in court filings, “they will continue to be drained of funds, and they face irreparable damage … that would cause creditors to go unpaid and jobs to be lost forever.”
Among Szymczak’s claims are that Dayspring used company funds to pay for his personal legal expenses related to FBI and IRS investigations, that he distributed more than $1 million