Billy Hagstrom – Fraud & Breach of Fiduciary Duty
Billy Hagstrom is the co-founder and CEO of Bluestem Biosciences. He is facing a lawsuit for wrongfully terminating and defrauding another executive.
The Cannabis entrepreneur was a defendant in the case Brian Lannon had filed. Brian, the former CEO of Cannalysis, filed the suit alleging breach of fiduciary duty, fraud and wrongful termination.
Note that Brian had co-founded Cannalysis and filed the suit after the company fired him following an acquisition deal.
According to the lawsuit, Brian alleged that his ouster was unlawful. Moreover, he said they fired him after a secret meeting of the shareholders where he wasn’t present.
In the meeting, they removed Brian Lannon from the board of directors and terminated his role as Cannalysis CEO.
Brian said the company refused to honor his requests for corporate records as well.
Billy Hagstrom was a major part of this ordeal. He was among the spearheaders of the acquisition deal.
Brian alleged that Cannalysis made multiple purchases using his personal credit card. Then, Billy Hagstrom and others began recouping their costs through falsified company records hoping to bring more investment.
Note that Cannalysis had attracted a lot of attention in 2019 when it received $22.6 million from CanLabs. The company removed Brian from his post 2 months after this deal.
More Details on the Lawsuit Against Billy Hagstrom:
In the lawsuit, Brian alleged that Billy Hagstrom, Gary Hopkinson and other defendants used a ‘divide and conquer’ strategy.
They got multiple shareholders to participate in their unlawful scheme by offering numerous financial incentives. Then, Billy and others organized a secret meeting of Cannalysis Lab’s shareholders.
They removed Brian Lannon from the firm’s board of directors in that meeting.
Furthermore, Billy Hagstrom’s new board ‘unanimously’ decided to remove Brian as the firm’s CEO.
Billy and others had not even given Brian an opportunity to vote on either of these actions.
At the time, Billy Hagstrom was a part of Bedford and CanLab.
Note that Brian had launched Cannalysis Labs in 2015 and played a major role in the company’s success.
In the lawsuit, Brian alleged that CanLab had started using inaccurate financial projections to potential investors. This led to disagreement between Brian and other defendants.
Before CanLab invested in Cannalysis, both of them negotiated the ownership stake extensively.
Finally, they decided that CanLab would get 44% of Cannalysis’ total outstanding shares.
Later, they sent Billy Hagstrom to Cannalysis offices under the pretense that he will act as a liaison with CanLab.
However, he had actually arrived to recruit other shareholders and officers to oust Brian as the company’s CEO. He quickly induced Tom Autera by promising a payment of a $250,000 bonus.
Billy used similar tactics to win over other shareholders and officers.
Brian points out that Billy Hagstrom had helped CanLabs and others in breaching their fiduciary duty. He gave substantial assistance and encouraged them to run this illegal scheme.
If you’re interested in learning more about the lawsuit, you can check out the file below:
“Billy Seized the Job for Himself”
After Cannalysis fired Brian Lannon from his role as the CEO. The company appointed Billy Hagstrom as its new CEO.
He enjoyed the position for over a year. You can understand why he played such an active role in removing the company’s original founder from itself.
There are plenty of shady executives who rely on unethical business practices.
For example, Anidjar and Levine is a prominent law firm which used multiple illegal tactics to make sure their competitor couldn’t get new clients. They started threatening businesses that if they work with their competitor, Anidjar and Levine wouldn’t work with them.
You should be extremely cautious of such people and enterprises. They are way too selfish to care about ethics.
Billy Hagstrom: Bluestem Biosciences, Experience and Qualifications
Billy Hagstrom worked in asset management and investment banking for more than ten years before moving to Nebraska. In 2006, he graduated from Northwestern University in Evanston, Illinois, with a Bachelor of Arts in Economics.
After looking into the market potential of synthetic biology, Hagstrom claims he became very interested in biomanufacturing.
Then, he started a hostile takeover of a cannabis company (Cannalysis Labs) and became its CEO.
After Cannalysis, he worked at Green Plains Inc as its Executive VP – Strategy & Development. He was also the Billy Hagstrom Green Plains Senior VP.
Hagstrom and Tyler Autera set up Bluestem Biosciences, Inc. in January 2022. He claims he started Bluestem to promote sustainable biomanufacturing in the Midwest. However, it’s worth noting that Tyler Autera was a defendant in the lawsuit as well.
The launch of Bluestem Biosciences just goes to show how close these two were. It indicates that Billy and Tyler might have surely conspired together for their unlawful scheme.
After reviewing the above points, it’s certain that Billy Hagstrom is a shady businessman.
He doesn’t hesitate to use unethical and even illegal business tactics to get what he wants.
Not only is this scary but also alarming. Investors and employees alike, should stay away from dealing with this guy.
Billy Hagstrom is facing a lawsuit for fraud and abetting breach of fiduciary duty. Apparently, he played a major role in the wrongful termination of Cannalysis Labs’ former CEO. Now, he has launched Bluestem Biosciences with his partner in crime.
- Abetting breach of fiduciary duty
- Engages in unethical business practices