Cimarron Capital, Inc. and Christine Arenella have filed a lawsuit against Smart Decision, Inc., Leonard Tucker, Adam Green, Eric Gutmann, James Dempsey, and Jonathan Morgan in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida. The case number is 502024CA004494XXXAMB Div: Al and was e-filed on May 14, 2024. The plaintiffs allege fraud and negligent inducement related to investments exceeding $50,000.
According to the complaint filed by attorney Russell L. Forkey on behalf of Cimarron Capital and Christine Arenella, Smart Decision was initially involved in developing algorithms for the LED lighting market before pivoting to the Cannabidiol (CBD) market. Despite raising equity capital and debt financing through various offerings, Smart Decision faced financial difficulties by late 2021. The plaintiffs claim that Leonard Tucker misrepresented the company's financial health to secure a $250,000 investment from them.
The plaintiffs assert that their funds were misused to pay commissions to Tucker and other expenses unrelated to marketing or development as promised. They further allege that Smart Decision was insolvent at the time of their investment and that the Reg-A Offering was in severe trouble due to lack of financial resources.
Cimarron Capital and Christine Arenella are seeking judgment against all defendants for an amount within the jurisdictional limits of the court, interest, costs, and reserve the right to pursue punitive damages. They demand a trial by jury for all issues triable as a matter of right by jury.