A group of Vermont farmers’ financial future is uncertain after being duped by the man who was supposed to buy their hemp. The farmers invested time and money into the crop; some even switched wholly from previous operations to grow hemp.
Patrick Sullivan owns Ananda Garden, where he has Montpelier chicken and also grows vegetables. He expanded his garden by 2 acres to grow hemp. Sullivan was looking to add another business to his existing ventures and entered into a $50,000 contract with CBD Vermont. Sullivan further said that he is counting on the payment.
Sullivan cultivated hemp for CBD and CBD Vermont harvested it for cannabidiol oil. CBD oil has many health benefits and it is on high demand; thus, it is infused in many products.
Since Sullivan and other farmers in Vermont had worked with CBD Vermont in 2018, they were not afraid of anything because they had signed contracts and were paid well the previous year. The owner of CBD Vermont went ahead and opened a store in Waterbury Center.
Signs of trouble began when a note on the widow said that the company’s staff were on vacation. However, WCAX News later reported that the business was not closed because the staff were on vacation but because the Labor Department in Vermont closed the company down by issuing a stop-order. The official from the Department said the business was shut down because the company was not paying workers compensation benefits. It is alleged that CBD Vermont’s owner, Doug Bell, did not pay about ten farmers.
Sullivan further said that most of the farmers spent half of their annual income and expenses on cultivating the crop. They just wanted to reap the benefits for all the work they had done.
Sullivan is afraid that he is out of $50,000 after the check CBD Vermont paid him bounced two weeks after the birth of his second daughter.
Sullivan then called the police to report the fraud. Jeff and Melanie Carpenter also grew hemp for CBD Vermont at their farm, Hyde Park. Carpenter noted that the company owes them a total of $25,000 since their check bounced.
Melanie Carpenter said that they worked hard and have people in their employ and bills that need to be paid, and since the payment did not go through, they are in a difficult place financially.
The farmers claim that CBD Vermont owes them about $1.5 million in total.
Jeff Carpenter said that Bell claimed that he had a buyer for all the manufactured CBD oil, and they do not understand what happened. Most farmers had their crops harvested; however, farmers whose crop was not harvested could not harvest by themselves since it would be in breach of their contact with CBD Vermont. Thus, the yields are rotting in the fields. A contract is only useful when people honor it, Sullivan added.
Washington News tried reaching out to Bell, but he did not respond. The Washington County state attorney is working closely with the state police in Vermont and several local law enforcement agencies to investigate the case.
Speaking to WCAX News, the Labor Department learned that Bell has another hemp company called Healthy Vermont, and they are investigating further.
Analysts are saddened to hear such stories of farmers being duped and they are certain that established hemp companies like VPR Brands LP (OTCQB: VPRB) and Hemptown USA must be livid that hardworking farmers may be ruined financially because of the actions of an unscrupulous processor.
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