Federal prosecutors have charged a cannabis company owned by Dan Bilzerian, along with his father Paul Bilzerian and executive Scott Rohleder, for conspiracy to defraud the government and wire fraud. Although Dan Bilzerian himself is not facing charges, the allegations revolve around Paul Bilzerian’s attempts to avoid paying $62 million in civil judgments from a 1989 SEC ruling.
Paul Bilzerian, known as a corporate raider from the 1980s, made millions during that time. However, he has spent years fighting the U.S. government over the securities fraud judgment. Despite living on the Caribbean island of St. Kitts, he denied wrongdoing and stated in a 1999 court hearing, “I have no reason to dedicate the rest of my life to trying to earn money, all of which would go to basically pay a judgment that I don’t believe … should have been entered in the first place.”
Federal authorities claim that between 2018 and 2024, Paul Bilzerian and Rohleder used shell companies to conceal Paul’s interests while funding Ignite. The indictment accuses them of funneling millions of dollars to Ignite and keeping Paul’s involvement hidden, with Dan Bilzerian acting as a nominal CEO while his father controlled the company’s major decisions.
The government also alleges that Ignite misled investors regarding revenue and sales figures. Scott Rohleder is accused of helping prepare false tax returns for Dan Bilzerian, referred to in court documents as “D.B.” These false returns reportedly caused a tax loss of approximately $1.5 million to the IRS from 2018 to 2020.
Special Agent Tyler Hatcher of IRS Criminal Investigation described the allegations as portraying “a long-running, complex scheme to avoid their financial obligations.” According to the prosecutors, Paul Bilzerian and Rohleder not only funneled money through various entities but also withheld accurate financial data from investors.
Charges against Paul Bilzerian and Rohleder carry serious penalties. Each conspiracy count can lead to five years in federal prison, while each wire fraud count has a maximum penalty of 20 years. Rohleder also faces up to three years for each count of tax fraud.
Recently, one of Dan Bilzerian’s companies filed for bankruptcy, and his Las Vegas mansion was put up for sale for $25 million. A bankruptcy judge accused Bilzerian of using “corporate shell game” tactics. Dan Bilzerian has yet to comment on the ongoing case involving Ignite.
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