Cannavana accuses MassCBA CEO of mishandling license deal

Massachusetts privately-owned Cannavana is accusing Massachusetts Cannabis Business Association (MassCBA) David O’Brien of mishandling a license application in Tewksbury.

Cannavana, which operates a dispensary in Rockland, filed a complaint on February 19, 2024, accusing O’Brien of approaching them with a business opportunity to get a license for a store in Tewksbury, which opened its application process on March 7, 2023. The town planned to award three licenses.

The company says in its complaint that O’Brien showed up unannounced and asked the owner if they were interested in a business opportunity. Cannavana says O’Brien assured them that it was a guaranteed success because he could leverage his connections in the industry to secure a license in Tewksbury. He also told Cannavana that he had personal connections in the town as well, having grown up there. The group even visited the proposed location and O’Brien allegedly continued to assure them that the license process was a sure thing.

Money upfront

The complaint states that O’Brien asked for $250,000 upfront to get the proper approvals but asked that his name not be associated with any paperwork. He also enlisted Patrick Nichols and Dean Graffeo to assist in the licensing process as O’Brien said he would work behind the scenes.

Cannavana says it was enticed to lend $180,000 to the group with the understanding it would get 6% of the gross revenues and 9.9% of the equity in the new business. They claim that O’Brien and Nichols made personal verbal guarantees for the loan.

The court document states that the parties received their money, but then never provided an accounting of how the money was spent. Cannavana instead claims that O’Brien Nichols misused the money by sending texts to minors about selling cannabis and attempted to smear another town board member responsible for approving the license.

Tewksbury says no

Tewksbury was not amused with their actions and turned down their application for a license. The complaint says that texting minors about their marijuana project and handing out pamphlets rallying against a fellow business owner and competitor turned the town against them.

Cannavana then asked for its money back, and despite many assurances from O’Brien that the money would be accounted for and repaid, that never happened.  The company asked the court for the money to be returned plus interest and attorney’s fees.