Former Minnesota House leader's THC startup hit by partner's alleged theft
Co-founder of THC startup charged with embezzlement
Authorities are accusing the co-founder of Crooked Beverage Company of stealing money from the startup. FOX 9's Corin Hoggard has the full report.
MINNEAPOLIS (FOX 9) - A co-founder of a Minnesota THC beverage company is facing serious charges for allegedly stealing from his own company.
Alleged financial misconduct
THC startup 'Crooked Beverage Co.' hit by alleged theft
A THC beverage startup co-founder is accused of stealing from his own company. FOX 9's Corin Hoggard has the full report.
What we know:
Crooked Beverage Company, which began in early 2023, was allegedly targeted by co-founder Christian "Richard" Schenk, who is accused of taking company funds for personal use.
"We discovered within a few months that one of our partners was taking money out of the company, being very evasive, not answering questions," Ryan Winkler, another co-founder, told FOX 9.
Court documents reveal that Schenk owed his ex-wife more than $300,000, and payments were supposed to come from his earnings.
However, suspicion arose when the partners received a fake email, allegedly from a prominent defense attorney, indicating they didn't have to pay her. It turned out the email was from Schenk himself.
"There were no expenditures that he was going to make that I was going be happy with, but that in particular just shows the kind of high life he was living at other people's expense," Winkler said.
The unusual expenditures, including personal mortgage payments and luxury items, amounted to about $28,000. Schenk resigned when confronted, but allegedly took another $48,000 afterward.
He is now facing two felony theft charges.
Despite these challenges, Crooked Beverage Company continues to operate with products sold in hundreds of locations across Minnesota and in 10 states.
What we don't know:
It's unclear how the company plans to recover from the financial losses and the impact of recent legislative changes on their business.
The Source: FOX 9's Corin Hoggard spoke with multiple sources for information contained in this story.