World
How Dan Bilzerian’s Ignite Cannabis is Dealing with Canada’s Cannabis Act and Health Canada
This month Dan Bilzerian’s Ignite International will take over Canada. Ignite’s team has worked hard to comply with restrictions implemented by Canada’s Cannabis Act and Health Canada.
Despite the obstacles, Ignite is accomplishing goals to ensure the trust of customers globally. Being a horizontally integrated company, Ignite has solidified partnerships with exceptional growers and manufacturers in Canada. Dan Bilzerian and his team want the best, and their search to obtain and maintain quality and dosage are not finished.
Ignite’s Global Head of Cannabis, Gene Bernaudo, discussed some of the challenges the brand has faced and how they are overcoming each, to show how consistent Ignite is in all aspects of the business.
Q: What was the process and timeline for CX Industries to sign the exclusive agreement with Ignite International Brands to supply premium cannabis & CBD products?
Bernaudo: As some may have heard, we are no longer doing business with CX Industries. I can’t really discuss the circumstances of the split. What I can tell you is, we have since partnered with CannMart a leading processor and distributor of cannabis in Canada. This was very strategic in nature. One of the reason we chose CannMart as a partner is because they do not have a grow. I bet you a bunch readers are scratching their heads right now. Yes, you read that right, we did not want to partner with a large commercial Licensed Producer, producing the same mediocre product as everyone else in the industry. A partnership with CannMart solidified processing and distribution channels which allowed my team and I to focus on sourcing product from craft growers who are producing small batch, high-end cannabis. With this strategy we were able to move very quickly. We finalized our partnership with CannMart in Dec 2019 and are launching Canada with 10 skus on March 13, 2020. We chose to start with the infamous BC market and scale our way across Canada.
Q: Canada’s ad industry has strict laws against celebrity endorsements for pot products. Did this play a factor in the naming of the company? Has Dan Bilzerian had to make any sacrifices to get Ignite into Canada?
Bernaudo: Dan is the CEO of Ignite International Brands, Ltd. This allows us some leeway in how he can speak about the products. I would say our approach is similar to the approach Bruce Linton took back in the early days when he was out doing roadshows and promoting Tweed. As far as sacrifices go, I wouldn’t call them sacrifices I would call them strategic adjustments. We have had to adjust the type of content we post and ensure we are compliant in all markets we do business in. To me this is a great sign, it means we continue to grow as a global brand and evolve as a business. At the end of the day, we are a cannabis company but we are also an International FMCG company (Fast moving Consumer Goods) which means we have to be able to pivot and adjust strategies based on regulations in jurisdictions we are doing business in. When you have one of the best marketing teams in the world backed by a social media genius it’s easier to get the job done.
Q: Ignite has plenty of celebrity endorsements posts on social platforms such as Nikita Dragun, Cardi B, and Jake Paul. Is this the most effective marketing strategy for Ignite? If so, how has Canada’s Cannabis Act been an issue?
Bernaudo: The celebrity endorsements you are referring to are not for our cannabis products. Most, if not all of your references endorse our CBD line and in the U.S. there is no rule against that. It’s a pretty level playing field up here, the only real issue the Cannabis Act has imposed on us is we cannot use our iconic Goat Head logo as it depicts an animal or fictional character and can be deemed to appeal to children. Rules are rules and we have been happy to abide by them.
Q: Dan Bilzerian highlighted having one proprietary device that holds THC, CBD, and Nicotine all in one so, he decided to attack the Juul market. How will this translate in Canada, knowing they have a temporary halt on the production of flavored e-cigarette pods?
Bernaudo: Great question, the vape market in Canada from a nicotine perspective has been a disaster from the start. I 100% agree with Health Canada’s stance here. Nicotine use amongst young people is the highest it’s ever been and its largely due to flavored e-liquid in all its forms. I don’t agree with a ban, but what I can tell you is Health Canada is consistent in how they regulate. Similar regulations will apply to nicotine. E-liquid flavors and or packaging/logos cannot “evoke a positive or negative emotion or ‘way of life’ such as one that includes glamour, recreation, excitement, vitality, risk or daring.” We do have a nicotine strategy for Canada, its largely based on waiting for regulations to be implemented, waiting for trade to open up again in China (due to Coronavirus) and of course, for the ban to be lifted. We have made major headway with the device in question and it will most likely be introduced first in Canada with THC and CBD pods as regulations permit its use.
Q: Dan Bilzerian markets Ignite Cannabis as an active lifestyle to sway from the original stigma of laziness. Canada’s Cannabis Act prohibits pot companies to “evoke a positive or negative emotion or ‘way of life’ such as one that includes glamour, recreation, excitement, vitality, risk or daring.” Luckily, Ignite is still able to conduct this kind of promotion in the US. Do you believe this was a loophole that helped the brand’s message reach Canadians?
Bernaudo: I think having a social reach of 43 million followers definitely helps get our message out there in any form we want to deliver it. I wouldn’t call it a loophole as we are not using it as such. We are an International company and post content and product placement ads on social channels conforming to regulatory requirements where the particular product we are advertising is being sold.
Q: What other obstacles have Ignite faced in expanding into Canada?
Bernaudo: The only obstacle we have faced in Canada is product procurement. The biggest challenge has been securing products out here that meet our team, including Dan’s, criteria. We are happy to recently have forged some solid partnerships with amazing craft growers that will ensure we are able to distribute quality, consistent cannabis products across Canada. All the retailers and Provincial boards have been very supportive, and we look forward to working closely with them to bring our products to consumers.
Q: What are Ignite’s launch plans for this week in Canada? Will Dan Bilzerian be in attendance?
Bernaudo: Our BC launch event will be held this Friday, March 13th, at Bar None in Downtown Vancouver. Dan will be on the ground the day prior to meet with partners and industry leaders as we continue to grow relationships north of the border. He will also attend the launch event alongside hundreds of partygoers eager to celebrate Ignite’s Canadian Launch.
By Monitoring Desk
WASHINGTON: American Federal and State agencies are investigating two Pakistani American businessmen and their associates over suspected money-laundering, wire fraud and tax evasion for setting up dodgy company structures to launder the proceeds of purported black money, according to the investigators involved in the case.
Federal investigating authorities in the US have confirmed that two companies namely: Riceland Investment Group LP (a Texas limited partnership) and Mecca Farms Group LLC (a Texas limited liability company) are being investigated for setting up complex and questionable structures to avoid paying taxes and launder the suspected black money for the benefit of the individuals running and controlling these companies.
Riceland Investment Group was originally set up by Texas-based Syed Rashid Ali but the company entered into a dubious partnership in 2015 with Mecca Farms Group, owned by businessman and former Advisor to the Interim Prime Minister of Pakistan, Muhammad Tahir Javed from Texas – making Tahir Javed full owner of Riceland Investment Group and giving him 51% control of Mecca farms.
https://gnnhd.tv/news/39177/us-investigates-pakistani-businessmen-for-alleged-fraud
According to the US investigators, the matter may not be as simple as it seems on paper.
Syed Rashid Ali, his brother Syed Shahid Ali and Muhammad Tahir Javed have a history of falling foul to American laws, involving fraud and embezzlement convictions that include a high-profile probe into the $35 million COVID-19 relief scheme scandal involving the US Justice Department.
The quagmire intensifies as Muhammad Tahir Javed, who has also served as a Pakistan Tehreek e Insaf leader in the US has been linked with a brutal murder plot of a close relative in Pakistan too, an allegation that he denies.
Javed’s professional career has been marred with controversy as he was removed as the Advisor to Interim Prime Minister Anwar-ul-Haq Kakar just days after his appointment, the notification being withdrawn due to a former conviction in the US he didn’t declare in Pakistan.
In this particular case, according to the evidence gathered by the investigators, it was agreed that Tahir Javed (the ‘Investor’ and the convicted felon) would purchase 55% membership/ownership interest in Mecca Farms on a fully diluted basis with the ownership interest in Mecca Farms for $2,465,000.00.
https://www.geo.tv/latest/515760-pm-kakar-removes-sapm-tahir-javed-within-days-after-appointment
The purchase price to be paid at the closing of the contract was $500,000, stating: “and the balance will be paid as and when needed by Mecca Farms within five (5) days of the date on which Mecca Farms requests such amounts”.
Investigators believe that this scheme was a hoax.
According to the documents at the centre of the investigation, Muhammad Tahir Javed has claimed he has paid $200,000 of the total purchase price but evidence shows that the balance amount of $2,245,000 has not been paid.
The federal investigators – who suspect that the scandal is linked with the cover up of the $35 million COVID-19 relief scheme scandal – say that Syed Rashid Ali has conspired with Tahir Javed in the cover up conspiracy.
The takeover agreement made Muhammad Tahir Javed as the Chairman of the Board of Managers with a board of managers consisting of managers and members, mostly from Houston that include: Mohammad Shahid Javed; M. Israr Ahmad; Dr. Amir-ul Islam; Syed Rashid Ali; Sayed Hamed; Syed Shahid Ali; Shaista J Ali; Soraya Harris; Syed Shahid Ali; Naghman Shaikh; Hassouneh Maher Ezzuddin; Tahira Faiz Ahmed; Francisco Bernal; Danish Hussain/Fraz Hussain/Faiza Hussain; Mobin Khan; Faraz Hussain; Kalesha Skaik; Sujath Ali Syed; Keith Mohammad; Tarek Al-Kadri; and Khalida Siddiqui.
The structure established for Mecca Farms raises suspicions and grounds for the investigation, American authorities believe.
Syed Rashid Ali and Syed Shahid Ali are real brothers and are part of the scheme; as are real brothers Tahir Javed and Shahid Javed. In several financial deals, Shahid Ali and Shahid Javed, brother of Tahir Javed, have been partners and their past dealings are also under probe too, papers reveal.
What has led American investigators to start such a high-profile probe?
Investigators have confirmed that the latest probe is linked to the $35 million COVID-19 relief scheme corruption scandal of December 2021 in which a federal grand jury in Houston charged and sentenced several individuals for fraudulently obtaining and laundering millions of dollars in the forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
https://www.ice.gov/news/releases/4-houston-area-men-charged-35m-covid-19-relief-fraud-scheme
In total, 15 individuals across two states were charged in the conspiracy. According to court documents, Syed Shahid Ali (of Sugar Land, Texas) conspired with others to submit more than 80 false and fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses.
In total, the defendants sought over $35 million in PPP loan funds and obtained approximately $18 million in PPP loan proceeds and then committed wire fraud, theft, money laundering and embezzlement.
The indictment had alleged that the defendants laundered a portion of the fraudulent loan proceeds by writing cheques from companies that received PPP loans to fake employees.
https://www.justice.gov/usao-sdtx/pr/four-more-charged-35m-covid-19-relief-fraud-scheme
Those who received cheques included some of the defendants and their relatives, according to the charges. Even before going to the trial, almost all of the accused pleaded guilty for their involvement in the scheme of wire fraud, money laundering and aggravated identity theft.
The investigators say the COVID-19 Fraud Enforcement Task Force – established by the Attorney General in May 2021 – that marshalled the resources of the Department of Justice in partnership with agencies across government to prosecute the fraud accused are also helping the federal investigators in this probe, focussed on the Javed brothers, the Ali brothers and their accomplices.
https://www.justice.gov/opa/pr/man-convicted-multimillion-dollar-covid-19-relief-fraud
Papers show that Sayed Shahid Ali took loan amounts of $566,778 and $522,800 through Riceland. He claimed he was offering free Covid shots to the community through his hospital but the federal government was paying him $35 per patient. The investigators are of the view that Tahir Javed and Shahid Ali were working in cahoots and Shahid Ali took indictment on him in order to protect his partner, Tahir Javed.
Thousands of miles away in the Toba Tek Singh District of Punjab, Pakistan authorities are investigating the murder of a poor villager in 2008.
Wahab Anwar, son of Anwar Ahmad, of village 308 GB of Tehsil Pir Mahal in Toba Tek Singh was killed in broad daylight. A handsome villager, his parents sent him to Lahore in early 2008 to work for Muhammad Tahir Javed and his wife Rubina Javed at their Lahore home. Suspecting an affair, Tahir Javed purportedly shot Wahab Anwar who died three days later succumbing to a gunshot. The police got involved but Tahir Javed made a plea bargain with the victim’s father by paying a significant amount. Javed also got the victim’s sister married to his nephew (sister’s son) and ensured the bride arrived in Texas shortly after the marriage. In Pakistani Diyat laws, blood money can be paid to avoid a murder conviction, provided that the victim’s heir(s) agree to forgive the accused. Currently, the victim’s sister is a resident of Jefferson County in the City Of Beaumont.
The murder case is now being reviewed by senior Pakistani investigators after Tahir Javed’s fraud and criminality were exposed in the Pakistani and international press. These reports also resulted in his removal as former caretaker premier Anwar-ul-Haq Kakar’s advisor. Former Interim PM Anwar Kakar’s office had formed a probe committee which found that Tahir Javed had hidden his felony and fraud conviction in the US at the time of becoming Kakar’s advisor in October 2023.
The committee had established that Tahir Javed had lied about his credentials, and he was sacked just a few weeks later from his position as “Special Assistant to Prime Minister on Investment” on the intelligence reports by Pakistan’s intelligence agencies.
Reports submitted to PM Kakar had said Tahir Javed had campaigned for Imran Khan and the PTI while the party was in power but he became a fierce critic of Imran Khan later on – calling Imran Khan a failure as PM whose only claim to fame is his celebrity status as a cricketer. This was believed to be done to pave the way for Javed to join the Kakar cabinet. The intelligence report also found that Muhammad Tahir Javed had pledged publicly to donate $50000 to former army chief General (rtd) Qamar Javed Bajwa’s fund for the flood victims in 2020 but the cheque bounced as it didn’t have the enough funds for clearance.
According to Texan court records, Tahir Javed was sentenced to five years of deferred imprisonment for felony theft in 1994. The Texas Jefferson County’s District Criminal Court data records Muhammad Tahir Javed’s felony theft as “Cause: 56447; offence date: 25 September 1990, Beaumont Tx; filing date: 5 November 1990; offence description, theft by receiving; probation amount: 5; and description: P/G Judge; and Deferred Completed: 28th of March 1994.”
In July 2017, Javed was warned of criminal prosecution, seizure or injunction by the Food and Drug Administration (FDA). The warning was issued over Royal Smoke LL, an online purveyor of tobacco and tobacco related products. At the same time, Royal Smoke was subjected to government intervention.
Tahir Javed was additionally cautioned against labelling and advertising outside the scope of the law and barring corrective measures could face criminal prosecution.
Continuing his career in public life, Muhammad Tahir Javed, in 2023 announced to run for the Fort Bend County Precinct 3 Position. However, he was slapped with a Texas Ethics Commission investigation – case SC 32306211, causing him to back out.
https://www.samaa.tv/208733157-us-pakistani-businessman-tahir-javed-sacked-by-interim-pm-kakar
American agents confirmed that Tahir Javed’s conduct has been of interest to them for several years now.
In 2018, Tahir Javed ran for Congressional seat In Houston which he lost at the primary stage. Investigators reveal that the 2018 election campaign by Javed is also under investigation as Tahir Javed allegedly transferred the domicile of many of his family members and friends to the district he was running in to increase his vote base.
Informed sources further revealed that Tahir Javed made several dubious entries during his campaign to move funds from his company Riceland and then paying back to him under filing FEC-1209534, documents proving that Tahir Javed contributed $100,000 and $25,918 to his campaign.
Another document showed Tahir Javed contributing $553,416 in February of 2018. Later on, documents revealed that under the Political Action Committee (PAC) & Super PAC contributions, Tahir Javed lent money to his own company Riceland HealthCare in the amount of $1,304,556.
Furthermore on December 31, 2018 Tahir Javed forgave a loan of $250,000 to himself from the campaign funds. For the investigators, these are highly suspicious activities signalling high level money laundering.
A year later in 2019, Tahir Javed tried to make up for the losses by committing insurance fraud, according to the investigators. The federal agencies are investigating how Tahir Javed allegedly used his own hospital and had family members go through multiple surgeries by billing insurance companies. Interestingly, on the day when his family’s surgery was scheduled, social media showed them attending a social event which gave a red alert.
https://dunyanews.tv/en/Pakistan/760767-Overseas-Pakistani-Tahir-Javed-made-PM-special-assistant
Now all of this is under investigation. If proven guilty, Tahir Javed will find another felony which may lead to his US citizenship revoked and he may also end up getting 15 years in jail and could potentially be deported back to Pakistan.
Investigators are also looking at another controversy involving a Pakistan Super League team, Lahore Qalandars which features a new financial scandal involving the amount of five hundred million rupees (Rs 500,000,000/$1.8 million). According to court papers filed in the State of Texas at Jefferson County, Muhammad Tahir Javed and his company TJ Properties (SMC-Private) Limited failed to fulfil contractual obligations for the sale of plots at a residential society in Pakistan.
Court papers show Muhammad Tahir Javed and his company along with Realtor Nine Limited entered as joint venture partners earlier this year into an agreement with Qalandars Marketing (Private) Limited for the marketing and sales rights as Titanium Partner of Qalandars City Project located at Lahore-Islamabad motorway at Kot Abdul Malik Interchange.
Tahir Javed and his partners agreed that the joint venture partners will design and plan the sales strategy for different types of markets including UK, USA, and the Middle East to implement it for marketing. Legal papers show Tahir Javed and Realtor Nine Limited failed to make the payment as agreed in the binding contract also failing to fulfil any contractual obligation which they had agreed to in the 17-pages long contract.
The case was fought in a Texan court as well as in Pakistan. After Lahore Qalandars hired a law firm in Houston, on the very first reply to his frivolous case, Tahir Javed not only withdrew his lawsuit but also apologised to avoid a lawsuit against him.
Lawyers acting for Lahore Qalandars have said they are considering further legal steps.
Sources claim that American federal agents have also communicated with Pakistani authorities pertaining to this case, however, they did not elaborate on the progress of the investigation.
Sources close to Tahir Javed and Syed Ali confirmed that federal investigating agencies were in touch with them but they announced the intention to fully defend the case. They claimed it was unfortunate that the new investigation was being linked to the $35 million COVID-19 relief fraud.
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