Trulieve Cannabis alleges ex-CFO wrongly expensed more than $350,000

Florida-based marijuana multistate operator Trulieve Cannabis is evaluating its options after discovering the company’s former chief financial officer allegedly sought reimbursements for personal expenses and used the MSO’s corporate credit cards inappropriately, racking up as much as $400,000 in personal expenses.

The company’s audit committee investigated former CFO Alex D’Amico’s expense reimbursement submissions after he resigned from the role in June, according to regulatory filings.

“The Audit Committee and the Company determined that Mr. D’Amico engaged in conduct that was inconsistent with the Company’s policies and procedures by both submitting expense reimbursements for personal expenses as well as utilizing corporate credit cards for personal expenses,” the company alleged in its latest quarterly earnings report.

“The investigation has concluded, and the Company estimates that the total amount in question is between $350,000 to $400,000.”

The money has not been paid back, the report noted.

D’Amico and Trulieve did not immediately respond to MJBizDaily requests for comment.

Trulieve said it is now evaluating its options, which could include “seeking restitution from Mr. D’Amico of the amounts determined to have been improperly reimbursed and making corrective tax reports relating to any such amounts not recovered.”

According to the report, the expenses didn’t have a material impact on any of the company’s previously reported financial statements.

D’Amico was appointed to the role in 2020.

His total compensation in 2022 exceeded $1.5 million, according to regulatory filings.

That included, among other things, a base salary of $400,000, $432,500 in stock awards and $545,420 in option awards.

He resigned in June 2022.

Ryan Blust, the company’s vice president of finance, took over as interim CFO until Tim Mullany was appointed on July 10.

Mullany resigned 10 days later for “personal reasons.”

Blust has resumed the role of interim CFO as the company searches for a permanent replacement.

D’Amico started a new job on Aug. 7 as CFO at New Jersey-based medical technology company CytoSorbents, according to a news release.

Source: https://mjbizdaily.com/trulieve-cannabis-alleges-ex-cfo-wrongly-expensed-more-than-350000/