THC Designs Archives - Green Market Report

Debra BorchardtJuly 11, 2022


William McKenna, the former Finance Director for Los Angeles-based cannabis company THC Designs filed a lawsuit against the company on July 6, 2022. McKenna claims he was fired for refusing to defraud investors and tax authorities went the company’s owner Ryan Jennemann asked him to doctor the financials. He claims he was asked to reduce the liabilities so that the company could borrow more money. McKenna also thinks that the company was growing and selling psilocybin mushrooms for cash and not recording those sales.

Cooking the Books

McKenna said he was fired on February 9, 2022, despite having performed his duties and was given no reason for the termination. McKenna also stated in the complaint that the termination was one month before his wedding, which took away some of the wedding joy. The termination also threw him into debt and other hardships as he claims he wasn’t paid all of his wages upon his termination. McKenna’s previous job was as an Accounting Director for SoFi Stadium, home to the LA Rams and LA Chargers sports teams. He was drawn to the offer from THC Designs of $150,000 per year with a monthly performance bonus of $4,167 because he was getting married soon. He began his employment on July 12, 2021.

He says in the complaint that within his first month of employment Jennemann asked him to remove liabilities from a balance sheet that was being prepared for an
investor in an effort to obtain a $15 million loan. “Plaintiff refused to provide the doctored accounting because he reasonably believed removing the liabilities from the balance sheet report would be fraudulent and illegal.” McKenna also alleged that the prior Director of Finance, Dave Eing, was asked to do the same and he also refused. The complaint says, “Ryan Jennemann ultimately had a third-party contractor remove the liabilities from Defendants’ balance sheet in order to obtain the loan.”

Magic Mushrooms

McKenna also alleges in his complaint that the company was growing psilocybin or magic mushrooms and selling the product for cash but wasn’t declaring the income. He says he was expected to declare the operating expenses, but not the income. The complaint states, “Plaintiff’s suspicions were confirmed when Mario Suazo (former Director of Sales) texted Plaintiff that he had magic mushrooms for sale. (Plaintiff did not purchase the mushrooms.) Plaintiff asked Defendants’ third-party accounting manager if she was aware that Defendants were selling magic mushrooms, to which she replied, ‘they are great!'” Internally, the company was describing the product as shitake mushrooms to avoid detection, he claims.

McKenna said that on December 9, 2021, the California Department of Tax and Fee Administration (“CDTFA”) him asking for vendor invoices for a list of entities, including “Mushroom
Farm.” Jennemann said that he fired his previous Director of Finance Dave Eing for submitting to the CDTFA information that referenced “Mushroom Farm.” This time, Jennemann told Mckenna not to reference “Mushroom Farm” or “Sabina Farms” and instead to reference only “XXX E 32nd St” (the location of the mushroom farm). (THC Designs has asked that the address not be published for the safety of the people at the location.) He says in the complaint he became increasingly concerned that the illegal operation would result in a tax violation and began to communicate his concerns to Jennemann. That only put him on shaky ground with the owner.

Revolving Door

The ex-employee said that THC Designs had gone through three prior Directors of Finance in less than two years and that they all left or were terminated for similar reasons. McKenna is asking for his legal fees to be paid and other damages. The case was filed in the Superior Court for the county of Los Angeles.


Michelle JanikianDecember 22, 2017


It’s the final countdown to Christmas, and if you’re like me, you still have some last minute shopping to do. But, have no fear! The Green Market Report has you covered for the cannabis enthusiasts in your life, both in legal states and nationwide. It can be a stressful time of year, but we’ve collected the best holiday strains and products to help ease your elf on the shelf anxiety and make your cannabis-loving friends and family happy as can be.

  1. THC Designs: 12 Holiday Strains

For the 12 days of Christmas, THC Designs has released 12 festive cannabis strains complete with holiday aromas and flavors, like spices, pine, and sugar plums. They have uplifting sativa-dominant strains for holiday parties, like XJ-13, as well as hybrids and indica-dominant strains to help with stress, migraines, and other pains the holidays can induce, like GG #4, Lemon Meringue, and Gelato #33. With 12 options to choose from, there is something for everyone on your shopping list.

“These strains will help get consumers into the holiday spirit and manage holiday stress during one of the best, but busiest, times of the year,” said Co-Founder Ryan Jennemann.

  1. Daily High Club’s Signature Smoking Supply Box

Daily High Club boxes are stuffed with high-quality smoking supplies like premium rolling papers, filters, and glass pieces. Because there’s no actual cannabis included in the kits, they can be shipped to all 50 states, making them a great gift for your 420-friendly family nationwide. Just in time for the holiday season, they teamed up with legendary pot-activist, Tommy Chong, to create Chong’s Choice box curated by the king of cannabis himself.

  1. Lowell Farms: One Ounce Tasting Flight

For your cannabis-loving buds in California, Lowell Farms has released their own gift box, filled with eight 1/8th jars of premium, organic flower. Lowell has become one of the biggest names for pre-rolls in the state, and with this gorgeous limited edition and hand-crafted box, you and your loved ones can taste them all.

  1. Nutritional High Chocolates

For your edible loving, chocolate-fanatic friends in Colorado, Nutritional High has just released two chocolate bars for the holiday season. They have a premium milk chocolate bar and a dark chocolate with sea salt bar, each containing a total of 100 mg of THC, 10 mg per serving. These gourmet chocolates were the vision of CEO Jim Frazier, who manufactured chocolate for 20 years before entering the cannabis industry.

  1. CBD Goodies

CBD was all the rage this year, so treat your loved ones (or yourself) to some premium CBD products this holiday season. Phivida makes a CBD-infused iced tea specially designed to improve GI health, as well as other CBD products. Cannabinoid Creations also makes CBD drinkables, like CBD Hemp Soda in five different flavors, including ginger ale and honeydew melon.

Both of these products only contain CBD – sans THC – so they’re legal to ship to all 50 states. Plus, CBD doesn’t have psychoactive properties like THC, so it’s perfect for a loved one that’s curious about the medical benefits of cannabis, but doesn’t want to get “high”. I’m looking at you, grandma!

  1. Club M 24K Box

This last gift is ideal for that person who appreciates the finer things in life. Named the 24K MBox because it’s actually worth $24,000, it’s filled with 120 curated cannabis products and includes a two-year subscription to Club M, a private, VIP cannabis concierge service used by celebrities.

“Here at Club M, we have seen the California cannabis market blossom, and I thought this was a timely offering and these products represent not only the best, most notable items of 2017, but it also reflects the increasing expectations of the sophisticated cannabis consumer,” said Club M Co-Founder, Chris Husong.

Extremely limited, there are only five total available boxes this holiday season and only in California. However, for that exclusive someone in your life, it really is ideal. Included is a crystal-encrusted vaporizer with over 200 individually placed Swarovski crystals, 10 hand-rolled, gold-foiled cannagars, Royal Tips 24K gold blunt tip with 420 diamonds, limited edition strains, edibles, and topicals, plus 3.5 ounces of the highest quality flower from brands like THC Designs. Each category, (edibles, vapes, tinctures, concentrates, and flower) has 24 unique products included, and it’s available until New Year’s Eve if they don’t sell out.

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