Mike Tyson and Ric Flair have escalated a business dispute into a major legal battle, accusing former cannabis executives of orchestrating an alleged embezzlement scheme that drained millions from a licensing venture they helped promote.
The lawsuit centers on Carma HoldCo Inc., a cannabis licensing company once tied to the two sports icons. Tyson and Flair claim their trust was exploited through a coordinated pattern of misconduct behind the scenes.
Filed in Illinois, the 76-page civil complaint names former executives Chad Bronstein, Adam Wilks, and Nicole Cosby in a filing that alleges a RICO conspiracy involving wire fraud, embezzlement, money laundering, extortion, and securities fraud.
While the claims do not carry criminal penalties, the plaintiffs are seeking $50 million in damages and legal fees. Their attorneys have also requested a jury trial to decide the case.
Allegations of misappropriated funds
According to the lawsuit, company leadership allegedly treated Carma as a personal expense account, diverting funds away from operations while presenting a false image of financial stability.
“Throughout their time at CARMA, Bronstein and Wilks treated CARMA as their own personal piggy bank, using more than $1 million to pay for unauthorized personal travel on private jets,” the filing states.
The complaint further details alleged spending on a yacht, luxury travel, home renovations, and unapproved compensation, all allegedly charged to the company without proper authorization.
Tyson and Flair are being represented by Willkie Farr & Gallagher LLP, a New York-based firm, underscoring the seriousness of their pursuit and the scale of the alleged misconduct.
The lawsuit also references an unusual purchase involving an NFL figure targeting the Super Bowl in 2025, claiming company funds were used without approval to buy a luxury watch for a high-profile coach.
“In late 2020 or early 2021, Bronstein used company funds to purchase a watch for Los Angeles Rams Head Coach Sean McVay,” the filing reads. “Unbeknownst to McVay, this purchase was completed without company approval.
“Bronstein misappropriated approximately $15,000 worth of company funds,” it continues.
Wilks has denied the accusations through his attorney, Terry Campbell, dismissing the lawsuit and rejecting the RICO allegations in a statement.
“These claims are as credible as the people they come from,” Campbell said to Front Office Sports. “In short, the allegations are without substance.
“This is nothing more than an attempt to spit out an earful of salacious headlines and attempt to coerce my client into paying money.”
Carma previously sued Bronstein and Cosby after their departure, alleging misuse of marketing strategies and intellectual property tied to a Hulk Hogan-branded venture.
Tyson‘s name continues to carry unmatched global draw, even years after retirement, as recent viewership numbers highlight how his presence still eclipses modern boxing attractions – including those involving modern heavyweight champions.
Netflix announced that they averaged 33 million live viewers for the Jake Paul versus Anthony Joshua bout, a strong result that nevertheless fell short of the massive audience drawn by Paul’s fight with Tyson.
The Paul-Tyson event attracted an estimated 108 million global viewers as Paul won by decision, highlighting Iron Mike’s enduring appeal despite criticism over the age gap and his long absence from competitive boxing.
While Paul earned respect for facing Joshua and suffered a broken jaw, the numbers reinforced that Tyson remains a singular figure whose influence still defines boxing’s biggest moments.
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