A California medical marijuana dispensary operator that has provided startup financing for a company chosen to run four dispensaries in Maine is suing that company’s executive director for alleged breach of contract.

Berkeley Patients Group sued Augusta-based Northeast Patients Group and Executive Director Rebecca DeKeuster on July 6 in Cumberland County Superior Court.

The lawsuit alleges that DeKeuster, while being paid by Berkeley, used confidential information to strike a deal with a new financial backer for Northeast’s four Maine dispensaries and didn’t tell the California group about those talks.

DeKeuster’s contract with Berkeley, submitted as part of the court filing, precludes her from discussing confidential information about the company or its affiliates without written consent from Berkeley. It also bars her from competing with Berkeley for two years after the end of her employment with Berkeley.

The lawsuit seeks repayment of $632,195 in loans. It also asks that the court order DeKeuster, of Augusta, to end her association with Northeast Patients Group.

It isn’t clear how Northeast’s four planned dispensaries would be affected should the lawsuit be successful.

DeKeuster, who had worked for Berkeley Patients Group since 2004, was assigned in 2010 to lead the organization’s effort to open dispensaries in Maine, at a salary of $111,000. She established Northeast Patients Group, which a year ago was awarded licenses to operate four of Maine’s eight dispensaries. The state’s other four clinics are now operating, but none of Northeast’s have opened.

DeKeuster resigned from Berkeley in February after signing a letter of intent with the new investor, a Rhode Island-based organization backed by former professional basketball player Cuttino Mobley.

The letter between Northeast and Mobley Pain Management and Wellness Center outlines terms that had been discussed, including a $2 million financial commitment from Mobley. That included a $100,000 bridge loan effective upon the signing of the letter of intent, which is dated Feb. 23. The letter says the rest would be disbursed in three installments over an 18-month period, starting when a formal agreement was finalized.

Catherine Cobb, director of the Maine Department of Health and Human Services’ Division of Licensing and Regulatory Services, said Wednesday she was aware that talks between Northeast and Mobley were ongoing, but that no agreement had been finalized. She said Mobley has provided Northeast with “some amount of money” for its cultivation site in Thomaston, where marijuana has been growing since June.

Cobb said she expects Northeast to open a dispensary in Thomaston soon. The group has yet to secure locations for its other three dispensaries, in Portland, Augusta and the Bangor area.

Northeast’s attorney, Dan Walker of Preti Flaherty, wrote in a statement Wednesday that the group had intended to have all the clinics open in 2010, but its funding fell through.

“We do expect to have the necessary funding and support to open the dispensaries in the very near term,” he said.

Cobb said she expected Northeast to submit a new plan this week for financing the dispensaries.

“I think all of us would have liked this to happen faster,” she said.

Mobley’s attorney, Terry Fracassa, didn’t return phone calls Wednesday. Neither did DeKeuster, who is also a member of Northeast’s board of directors. The other three Northeast board members could not be reached or declined to comment.

Walker said he wouldn’t specifically address the allegations in the lawsuit, but that Northeast disagrees with the facts presented in the complaint and plans to file a response within the next few weeks.

Brad Senesac, spokesman for Berkeley Patients Group, declined to comment.

Kennebec Journal Staff Writer Michael Shepherd contributed to this report.

Staff Writer Leslie Bridgers can be contacted at 791-6364 or at:

lbridgers@mainetoday.com

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Correction: This story was revised at 4:55 p.m., July 14, 2011, to correct the spelling of the name of Brad Senesac, spokesman for Berkeley Patients Group.

 

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