A lawsuit has been filed in the Superior Court of California, County of San Francisco, that unveils a complex web of alleged deceit and broken promises within the burgeoning cannabis industry. The complaint, lodged by Eamon Greaney and Pacific Edge Construction, Inc., on April 22, 2025, accuses Khader El Shawa and his associates of fraud, breach of fiduciary duty, theft by false pretense, and several other serious allegations.
Eamon Greaney entered into a business partnership with Khader El Shawa back in 2009-2010 to invest in a cannabis distribution business. At that time, the legal landscape for cannabis was still developing. Their agreement was informal until 2020 when they formalized it with Greaney receiving a 10% share in the business. However, Greaney alleges that despite contributing significant capital and services towards expanding the business into new locations, he was deceitfully excluded from ownership stakes in these new ventures. According to the complaint, "Mr. El Shawa put the new locations in the name of a different corporate entity," effectively cutting Greaney out.
The lawsuit details how Mr. Greaney's construction company provided services at below-market rates under an understanding that they were part of his equity contributions. However, as tensions rose between him and Mr. El Shawa towards the end of 2023, payments for these services ceased altogether. This led to claims against multiple entities controlled by Mr. El Shawa including Shambala Healing Center Inc., A & E Green Solutions Inc., and others operating under various trade names like Mission Cannabis Club.
Plaintiffs seek judgment for damages including $125,000 in investments and over $200,000 worth of services rendered without compensation. They are also pursuing restitution for unjust enrichment and punitive damages due to alleged fraudulent activities by defendants who purportedly manipulated corporate structures to their advantage while misleading investors like Mr. Greaney about their actual stakes.
Representing plaintiffs is attorney David W. Martin from Oakland-based Law Office of David W. Martin while case number CGC-25-624613 will be presided over by judges at San Francisco’s Superior Court.