Ex-Trulieve CFO sued over alleged scheme to ‘raid’ corporate coffers

Dive Brief:

Cannabis supplier Trulieve is suing its former CFO, Alex D’Amico, alleging that he abused his corporate credit card while working for the company, relying on the account as a personal “slush fund.”
D’Amico misappropriated hundreds of thousands of dollars for personal expenses, including multiple vacations, thousands of dollars’ worth of expensive clothing, and personal lawyer and consultant fees, all under the pretense of business-related costs, according to the lawsuit, filed recently in the U.S. District Court for the Northern District of Florida. The company is seeking recovery of such costs as well as an award for damages.
“Throughout his tenure as CFO, D’Amico surreptitiously acted as though his position entitled him to raid the corporate coffers to finance his personal largesse as if it were his own personal slush fund,” the complaint says. D’Amico could not immediately be reached for comment.

Dive Insight:

Trulieve announced in June 2023 that it had accepted D’Amico’s resignation “with immediate effect,” setting off a series of tumultuous financial leadership changes at the Quincy, Florida-based cannabis company. Wes Getman, who previously served as a partner at accounting, tax and valuation advisory firm WilliamsMarston, ultimately took over Trulieve’s CFO seat in January.

The reason for D’Amico’s exit from Trulieve was initially unclear. However, the company subsequently disclosed that an audit investigation related to his corporate expenses and credit card transactions uncovered conduct that was “inconsistent with the company’s policies and procedures.”

D’Amico both sought to be reimbursed for personal expenses and made personal purchases with company credit cards during his tenure at the firm, the company and its audit committee concluded. The company estimated that D’Amico did not reimburse the company for such expenses, with the total amount “in question” between $350,000 and $400,000.

As part of his scheme, D’Amico submitted requests to get reimbursed for personal expenses he had already inappropriately charged to his company credit card, according to Trulieve’s lawsuit. He also sought reimbursement for “purely fabricated expenses never incurred by him,” the company alleges.

“With his scheme unraveling, D’Amico resigned from his position with Trulieve with knowledge of an ongoing investigation into his nefarious conduct instigated by the company’s board of directors and its audit committee,” the complaint says.