SHOT VENTURES PROBES OREGON CANNABIS FINANCIAL SERVICES COMPANY LEFT COAST FINANCIAL SOLUTIONS, REGULATOR INVESTIGATION UNDERWAY

PORTLAND, Ore., Dec. 21, 2022 /PRNewswire/ -- Shot Ventures is leading an investigation into the operations and finances of Left Coast Financial Solutions, Inc (LCFS) an Oregon registered corporation (OR-SOS #1208049-92) who accepted deposits from 64 local licensed cannabis companies intended for payments via check, ACH, and wire. LCFS is an Oregon registered money transmitter (Lic. #1816112) and in parallel, is being investigated as of December 6 by the Division of Financial Regulation - Dept. of Consumer and Business Services (DFR-DCBS) for possible violations of Money Transmitter laws.

The married LCFS cofounders contacted venture capital firm Shot Ventures for investment and to solve challenges. In the process, the Board of Directors and Shot Ventures became aware of potential liquidity issues, and shortly thereafter the cofounder couple resigned.

Shot Ventures' Dominique Villela was appointed CEO of LCFS to lead an investigation, initiating a forensic accounting audit, and is working to cooperate with regulatory agencies such as DFR-DCBS and FinCEN (Financial Crimes Enforcement Network), an office within the US Treasury.

"The financial impact is unclear. We're interviewing customers, identifying questionable transactions, and helping depositors assess if and how they were affected. We respectfully ask that our vendors, customers, creditors, regulators, and stakeholders be patient with us as we take steps toward arranging receivership and providing regulators with what they need at this time," said Mr. Villela. 

Shot Ventures is not an investor in LCFS and the special investigation team has not announced dates for completion of this auditing process. LCFS is not FDIC insured and as a cannabis based financial institution, Chapter 11 federal bankruptcy is not an option for lenders to secure debt issued, if determined insolvent.

Oregon's regulator DFR-DCBS is attempting to reach out to LCFS customers to notify them of the investigation. They ask that any prior customers of LCFS contact them to provide details on funds held in trust with LCFS, outstanding checks payable to the IRS or the Oregon Department of Revenue, including the amount(s); and any other items outstanding, which could include non-sufficient funds checks. To file a complaint, a link to their website is provided here >

For more information on this topic or to schedule an interview, please email [email protected].

SOURCE Shot Ventures