Two Singaporean businessmen invested US$750,000 (S$996,000) in a proposed medical marijuana project in Las Vegas, but the plan went up in smoke and the facility was never built.
Now, Mr Colin Chew, 44, and Mr Marcus Lim, 43, are suing a former lawyer, Mr Then Feng, 39, who had approached them with the proposal, for misrepresentation and breach of contract.
They are seeking US$6.8 million in profits they said they would have made if the proposed facility had come to fruition, and assuming it operated for at least two years. They are also seeking the balance of US$141,120.30 of their investment; Mr Then has repaid the rest of the money.
The case opened in the High Court yesterday for a three-day hearing. The duo’s lawyer, Mr Alfred Lim, said in his opening statement that in April 2014, Mr Then presented them with a proposal to set up a facility in Las Vegas in the US state of Nevada to grow and dispense marijuana, or cannabis, for medicinal use.
Mr Chew is a vice-president at a Nasdaq-listed communications equipment company while Mr Lim is an entrepreneur who used to work for a gambling company listed on the Australian Securities Exchange.
A British Virgin Islands company, Mary Jane Investments (MJI), was set up by Mr Then as the vehicle for the project. Mary Jane is slang for marijuana. At the time, Mr Then, a Singaporean, was a foreign-registered lawyer practising in the Singapore office of international law firm Walkers.
Mr Chew and Mr Lim alleged that Mr Then told them medical marijuana establishments are permitted in certain districts in Nevada. They said Mr Then told them that a 100,000 sq ft facility would be built and that the start-up cost was about