In a significant legal victory, Planet 13 Holdings Inc. (CSE: PLTH; OTCQX: PLNH), a leading multi-state cannabis operator, has successfully recovered approximately $10.5 million in cash and real estate assets following a protracted legal battle against its former investment advisor, El Capitan Advisors Inc., and its founder, Andrew Nash.

Background: The Embezzlement Scheme

Planet 13 engaged El Capitan in 2021 for cash management services. However, in late 2023, the company discovered discrepancies, including missing funds and fraudulent bank statements, leading to allegations that El Capitan had misappropriated millions of dollars.

Complicating matters, Casa Verde Capital, an investment firm, obtained a 35 million default judgment against El Capitan in an unrelated dispute. This judgment resulted in the freezing of approximately 5.5 million of Planet 13’s funds held at Bridge Bank, managed by El Capitan.

Recovery Efforts and Legal Proceedings

Planet 13 initiated litigation in Santa Monica, California, in January 2024 to recover the misappropriated funds. The lawsuit named El Capitan, Andrew Nash, Casa Verde Capital, Casa Verde’s managing member Karan Wadhera, and Jamie Nash, Andrew Nash’s former spouse, as defendants.

A court-appointed receiver was tasked with tracing the stolen funds. The investigation revealed that 4.6 million of Planet 13’s funds were used to purchase a luxury property in Santa Barbara’s Hope Ranch community. The property, valued at approximately 5 million, is now under Planet 13’s control and slated for sale.

Settlements and Ongoing Litigation

In a settlement announced on March 3, 2025, Planet 13 recovered an additional 2.1 million from Casa Verde Capital, bringing the total cash recovery to 5.5 million. Combined with the real estate asset, the total recovery amounts to approximately $10.5 million.

Despite these recoveries, Planet 13 continues to pursue legal action against El Capitan and Andrew Nash, seeking approximately $10.3 million in additional compensatory damages. El Capitan and Nash have not responded to the lawsuit, resulting in a default judgment against them.

Broader Implications

This case underscores the challenges cannabis companies face in securing reliable financial services due to federal banking restrictions. Planet 13’s experience highlights the risks associated with alternative banking solutions and the importance of due diligence. The company’s proactive legal approach serves as a potential blueprint for other cannabis operators navigating similar financial disputes.