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Breidenthal's pot assets frozen while lawsuit plays out Former Jackson County Commissioner Doug Breidenthal has been slapped with a lawsuit by investors seeking $529,000. [Mail Tribune / file photo] Tuesday Mar 7, 2017 at 6:12 PM Mar 8, 2017 at 8:09 PM Damian Mann Mail Tribune @reporterdm Assets for a marijuana store that former Jackson County Commissioner Doug Breidenthal tried to open in Medford will be frozen until a March 17 hearing before a local judge. "We wanted to freeze the money, the $27-grand, with the stipulation it be held in Breidenthal's attorney's trust account," said Chris Hearn, a lawyer representing Gregory S. Allen, Lawrence J. Nelson and Mary D. Nelson. Allen and the Nelsons have sued Breidenthal, claiming he misappropriated $229,000 they invested to open American Cannabis Co., located at 2131 W. Main St. The parties to the lawsuit met in Jackson County Circuit Court Monday before Judge Ron Grensky and will return March 17 to discuss appointing a receiver to manage the assets of the marijuana business until the legal action is resolved, according to Hearn. Breidenthal's Medford attorney, John Howry, said he doesn't comment on ongoing cases. The Nelsons, who are in their 80s, claim they have invested $150,000 to help finance the cannabis store. Allen said he paid Breidenthal $13,500 in cash from August through December 2016, while Breidenthal was still a commissioner and voting on cannabis issues, to act as a marijuana consultant and to help establish the cannabis store. Allen claims in the lawsuit he invested $79,000 in money, personal property and inventory for the business. Breidenthal has received a license from the state to operate the business, but has not yet opened the doors. The suit also lists two other businesses Breidenthal used in conjunction with American Cannabis Co.: Marigold Enterprises LLC and Capital Pacific Advisors Inc. In an amended declaration filed Tuesday with the court by Allen, he states, "I also recently learned that four or five checks drawn on the Rogue Credit Union business account have bounced, that utility and insurance premiums are not being paid, and that Capital Pacific Advisors Inc. and Marigold Enterprises LLC are currently in danger of insolvency." Allen claims that he met with Breidenthal in May 2016, when Breidenthal was still a county commissioner, to discuss new rules that affected Allen's previous marijuana business, Rogue Valley Remedies. "... I was surprised he expressed an interest in participating as my 'partner' in a to-be-formed OLCC licensed recreational marijuana retail dispensary," Allen states in his declaration. "Breidenthal indicated he could 'fast-track' local and OLCC approvals, due to his many political connections. In short, the idea essentially was that I would provide all the capital investment and he would provide the industry know-how." Allen, in his declaration, states he began giving Breidenthal cash payments of $1,000 per month last August as stipends for his efforts to secure a location for the marijuana business. "Before giving defendant Breidenthal his first (sic) him the first monthly 'stipend' payment, I asked Breidenthal if it was legally permissible for him to accept such a 'stipend' while he was still actively serving as a Jackson County Commissioner," Allen claims. Breidenthal told Allen that he had "run it by Jackson County Counsel, and confirmed had confirmed (sic) that the arrangement was both appropriate and permissible," Allen alleges. In addition to the $1,000 a month, Allen states he also provided other cash to Breidenthal of $5,000 on Sept. 30, 2016, and $4,500 in December 2016. The lawsuit claims elder abuse and breach of fiduciary duty and seeks restitution for the money lost. The investors asked the court to appoint a receiver and freeze American Cannabis Co.'s assets. The suit asks for triple damages for the Nelsons, or $450,000, under Oregon's Elder Abuse Statute.  The suit asks for $529,000 from Breidenthal and his companies. In their lawsuit, the Nelsons and Allen raise questions about $34,640 in expenses Breidenthal paid using the Marigold Enterprises account.  They allege Breidenthal charged a three-day stay, Dec. 12-15, 2016, at the iconic Hotel Del Coronado in San Diego to a Visa credit card belonging to Marigold Enterprises. The bill was $968.43.  In addition to the suit, Breidenthal remains under investigation by the Oregon Department of Justice over questionable expenses charged to a "Friends of Doug Breidenthal" account set up under the Association of Oregon Counties that was designed to help him campaign for an office of the little-known Western Interstate Region. Among the expenses under scrutiny is a $1,000 campaign contribution Breidenthal sent to county Commissioner Rick Dyer, when Dyer was running for the office in 2015. — Reach reporter Damian Mann at 541-776-4476 or [email protected]. Follow him on www.twitter.com/reporterdm.