Crime & Safety
Cannabis Startup Founder From Main Line Defrauded Investors Out Of Millions: Feds
Some investor funds were used on his sons' Bar Mitzvahs, social club memberships and lavish living situations, authorities said.
PENN WYNNE, PA — A Main Line resident and former cannabis-business executive is facing federal charges after authorities say he defrauded investors out of millions and spent company funds on his sons' college tuitions, social club memberships and rent for a luxurious California home.
David Dinenberg, 54, of Penn Wynne, was charged Tuesday with security fraud and four counts of wire fraud.
In 2013, Dinenberg founded KIND Financial — a California-based startup that provided payment processing and financial technology for the cannabis industry.
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The business secured a range of prominent investors, including venture capitalist Wayne Kimmel, singer-songwriter John Legend, and former Philadelphia Eagles running Brian Westbrook, according to The Philadelphia Inquirer.
According to federal prosecutors, Dinenberg defrauded investors out of more than $8.8 million over the course of 10 years. Throughout this time, Dinenberg falsely represented KIND'S revenues, valuations and business prospects.
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He also used more than a half-million dollars in investor funds on personal expenses, authorities said.
In 2023, he stepped down and was forced to return his company-issued shares.
An attorney contact for Dinenberg wasn't immediately available in public court records.
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