Two Singaporean businessmen invested US$750,000 in a proposed medical marijuana project in Las Vegas, but the plan went up in smoke and the facility was never built.
Mr Colin Chew, 44, and Mr Marcus Lim, 43, have sued former lawyer Then Feng, 39, who had approached them with the proposal, for misrepresentation and breach of contract.
The pair is seeking US$6.8 million ($9 million) in profits they said they would have made from their investment if the proposed facility came to fruition and assuming it operated for at least two years.
Mr Chew and Mr Lim are also seeking the outstanding 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 a proposal to set up a facility in Las Vegas, Nevada, to cultivate, produce and dispense marijuana, or cannabis, for medicinal use.
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 had told them medical marijuana establishments are permitted in certain districts in the state of Nevada.
They said Mr Then told them a 100,000 sq ft facility would be built and that the total start-up costs was estimated at US$1.48 million.
They said Mr Then told them the facility would be “highly profitable” as it was equipped to produce four harvests a year, amounting to a net profit of US$10 million a year. The