Planet 13 Holdings says it’s clawed back another $2.1 million in cash and property in its prolonged fallout with a shadowy banking alternative that allegedly siphoned off millions from the cannabis giant’s accounts.
The Las Vegas-based multistate operator (MSO) has been locked in a legal scrap with El Capitan Advisors, an investment consultant that once pitched itself as a lifeline to marijuana businesses shut out of traditional banks. Planet 13 now says the partnership cost them dearly — and they’re still counting.
A Broken Partnership With a Costly Trail
The partnership began in 2021. Planet 13 turned to El Capitan for help managing cash — not unusual in an industry where federal illegality keeps most banks at arm’s length.
But by the end of 2023, warning bells were ringing. Executives noticed discrepancies: missing funds, statements that didn’t add up. The company launched an internal review, then went public with accusations that El Capitan had “misappropriated millions of dollars.”
It quickly escalated to a lawsuit. The claim? Embezzlement.
What’s Been Recovered — and What’s Still Tied Up
Planet 13 says it has now recovered a total of $5.5 million in cash that was previously tied up or frozen, plus real estate worth another $5 million — property they plan to sell.
That includes the recent $2.1 million announced this week. It’s money they weren’t sure they’d ever see again.
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In the same press release, the company confirmed its lawsuit is still moving forward, with Planet 13 seeking another $10.3 million from El Capitan and its CEO Andrew Nash.
El Capitan’s Silence Raises Eyebrows
Perhaps most damning is what hasn’t been said. According to Planet 13, neither El Capitan nor Nash have formally responded to the complaint.
This radio silence led to a default judgment — essentially meaning the court is siding with Planet 13 by default because the other side didn’t show up to the legal fight.
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That leaves Planet 13 in a stronger position. But the real battle is far from over.
Bigger Trouble for El Capitan
Planet 13 isn’t the only one with a bone to pick. Casa Verde Capital, a cannabis-focused investment firm based in Los Angeles — and yes, co-founded by Snoop Dogg — recently won a $35 million judgment against El Capitan.
That verdict caused another headache. Around $5.5 million of Planet 13’s funds got frozen during the Casa Verde litigation. It took months to sort out, but Planet 13 now says that money is fully recovered.
Here’s what’s been confirmed so far:
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Total recovered cash: $5.5 million
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Real estate recovered: Valued at $5 million
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Remaining lawsuit value: $10.3 million
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Status of complaint: Default judgment in Planet 13’s favour
Cannabis and the Banking Catch-22
At the heart of this fiasco lies a bigger issue. Cannabis companies still can’t bank like normal businesses.
The SAFER Banking Act — legislation meant to protect banks working with legal cannabis businesses — has been stuck in Congress for years. Despite bipartisan support and overwhelming public backing, it’s never made it to the finish line.
That leaves companies like Planet 13 in limbo. Desperate for financial services, many turn to private advisors like El Capitan, which operate outside the usual oversight of banks. Sometimes it works. Sometimes it goes horribly wrong.
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The Association for Cannabis Banking, based in New Mexico, previously flagged El Capitan as one such alternative. It’s unclear if that endorsement still stands.
What Happens Next?
For Planet 13, the legal wheels keep turning. The lawsuit against El Capitan and Nash remains active, with more than $10 million still at stake.
They’re also trying to liquidate the $5 million in recovered property — money they hope to re-route back into operations.
The company hasn’t revealed details about the property, nor where it’s located.
Meanwhile, El Capitan remains silent. The company hasn’t issued a public response, and Nash has made no media appearances.
The silence is deafening.