Case 3:23-cv-01301-RAM Document 1 Filed 06/07/23 Page 1 of 6

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

COOPERATIVA DE AHORRO Y
CREDITO TUCOOP
CIVIL NO:
Plaintiff,

v. DECLARATORY JUDGEMENT

3G GREEN GOLD GROUP LLC

Defendants

COMPLAINT FOR DECLARATORY JUDGMENT

TO THE HONORABLE COURT:

COMES NOW plaintiff, Cooperativa de Ahorro y Crédito TuCoop (“TuCoop”), through

the undersigned attorneys, and very respectfully Allege and Pray as follows:

I. JURISDICTION

1. This is a civil action requesting declaratory judgment pursuant to 28 U.S.C. §2201

regarding the infringement of federal laws and regulations when a Marijuana Related Business

(“MRB”) located in Puerto Rico disguises its commercial and financial activity as non-MRB

transactions in order to funnel marijuana proceeds through the interstate commerce and deposit

such proceeds in a bank account in Colorado belonging to a corporation whose owners have issued

a trust composed of a multi-layered LLC structure based in Sweden and Nevis.

2. This Court has original jurisdiction to entertain this case as it is a civil action arising

under the laws of the United States, 28 U.S.C. §1331.

3. Venue lies properly in this Court as all defendants reside in this District and the

events giving rise to this action occurred in the District of Puerto Rico, 28 U.S.C. §1391(b).
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II. THE PARTIES

4. TuCoop is defined as a financial institution pursuant to 31 U.S.C. §5312. As such,

it is subject to full compliance with the Currency and Foreign Transactions Reporting Act of 1970,

also referred to as the Bank Secrecy Act (“BSA”), 12 U.S.C §1951; the provisions in Title III of

the USA PATRIOT Act of 2001; and with the Anti-Money Laundering Act of 2020. Additionally,

as a financial institution, TuCoop is subject to the mandatory regulations and guidelines issued by

its federal regulator, the Financial Crimes Enforcement Network (“FinCEN”), a bureau that

operates under the U.S. Department of the Treasury, as well as all guidance issued by the Federal

Reserve Bank of New York.

5. TuCoop is also a Puerto Rico chartered credit union pursuant to the Savings and

Credit Unions Associations Act of Puerto Rico, Act No. 255 of October 28, 2002, as amended, 7

L.P.R.A. §1361 et als.

6. 3G Green Gold Group LLC (“3G”), is a limited liability company organized under

the laws of the Commonwealth of Puerto Rico. It participates in the MRB in Puerto Rico through

the ownership and operation of “BWell” dispensaries of medicinal cannabis (marijuana)

throughout the Island.

III. FACTS

7. Marijuana is an illegal Schedule I drug under the federal Controlled Substance Act

(“CSA”), 21 U.S.C. §801 et seq.

8. For the federal government, financial transactions involving proceeds generated by

the MRB can form the basis for prosecution under money laundering statutes (18 U.S.C. §§1956

and 1957), the unlicensed money transmitter statute (18 U.S.C. §1960), and the BSA. Sections

1956 and 1957 of Title 18 make it a criminal offense to engage in certain financial and monetary
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transactions with the proceeds of certain “specified unlawful activity”, including proceeds from

marijuana-related violations of the CSA, regardless of whether the sale of marijuana is authorized

or legal under a State program.

9. In Puerto Rico, the use of medicinal cannabis has been authorized pursuant to the

Puerto Rico Act to Regulate the Medicinal Cannabis Industry, Act 42 of July 9, 2017, 24 L.P.R.A.

§2621 et seq.

10. Pursuant to Article 18 (d)and (e) of said Act, TuCoop is allowed to provide financial

services to MRB’s in Puerto Rico. 24 L.P.R.A. §2626.

11. As such, 3G is a client of TuCoop, with an account for the deposit, withdrawal, and

transfer of funds in TuCoop for its MRB.

12. Even if TuCoop may provide financial services to 3G pursuant to State law, Article

18(a) of the Act clearly states that “This Act forbids and seeks to establish controls to eliminate

money laundering. It shall be obligatory to comply with the guidelines by the Federal

Government that require clear controls for cash transactions to prevent money laundering”.

13. As the bureau responsible for enforcing the BSA, on February 14, 2014 FinCEN

issued mandatory Guidance FIN-2014-G001- “BSA Expectations Regarding Marijuana-Related

Businesses”- to clarify “how financial institutions can provide services to marijuana-related

businesses consistent with their BSA obligations”.

14. Pursuant to such Guidance, in assessing the risk of providing services to a MRB, a

financial institution like TuCoop should conduct customer due diligence, including ongoing

monitoring for suspicious activity. Some of the red flags identified by FinCEN include 1)

Individuals conducting transactions for the business appear to be acting on behalf of other,

undisclosed parties of interest; 2) A customer seeks to conceal or disguise involvement in

marijuana-related business activity; 3) An MRB engages in international or interstate activity, by

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receiving cash deposits from locations outside the state in which the business operates, making or

receiving frequent or large interstate transfers, or otherwise transacting with persons or entities

located in different states or countries.

15. The Federal Reserve Bank of New York (“FRBNY”) serves the Commonwealth of

Puerto Rico. The FRBNY has prohibited all financial institutions in Puerto Rico, including

TuCoop, to process through the Fedwire Funds Service (“Fedwire”) funds generated in any MRB.

For that reason, in order to gain access to the Fedwire, financial institutions in Puerto Rico are

required to certify that they will “not use FRBNY accounts or services to process transactions that

represent proceeds of any MRB’s business activities”.

16. The Fedwire is the premier electronic funds-transfer service on which banks,

businesses and government agencies rely for mission-critical, same-day transactions.

17. TuCoop became aware that 3G created, implemented, and is operating by itself or

with the help of third parties, a scheme to evade the prohibition of the FRBNY and utilize the

Fedwire to transfer marijuana proceeds to the State of Colorado and other jurisdictions. Such

scheme entails disguising purchases of medical marijuana in BWell dispensaries as ordinary non-

MRB commercial transactions, so the impacted financial institution in Puerto Rico cannot

recognize the real source and/or purpose of the payment (a purchase of marijuana) and approve

the transfer of the funds and/or the clearing of such transactions through their Fedwire account or

through their local correspondent banks which maintain Fedwire accounts. See, sales receipts,

Exhibit 1.

18. Upon approval of the disguised transaction, the MRB funds are sent to the account

of a business with a Florida address and then, transferred again and deposited in a Colorado bank.

The owner of the account in Colorado is a Swedish limited liability company that operates a trust

for the benefit of a corporation operating in Nevis. See, flow chart, Exhibit 2.
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19. FinCEN has clearly identified that kind of conduct as red flags that should alert to

possible illegal activity. It also serves as basis for the termination of the relationship between the

MRB and the financial institution.

20. TuCoop provided an opportunity to 3G’s management to explain its methodology

to process its masked MRB payments out of the jurisdiction of Puerto Rico, but 3G could not

provide a satisfactory explanation. As such, TuCoop intends to close 3G’s accounts.

21. Disregarding applicable federal law, 3G has simply maintained that its actions

comply with the Puerto Rico Act to Regulate the Medicinal Cannabis Industry, Act 42 of July 9,

2017, 24 L.P.R.A. §2626. It has also alerted that the closing of its bank account by TuCoop would

constitute an “undue interference with interstate commerce” and/or that it could be considered a

“monopolistic activity”. Finally, 3G has announced that it anticipates litigation.

22. Because 3G has failed to explain its payment scheme through the FRBNY Fedwire,

TuCoop believes 3G’s payment scheme qualifies as suspicious activity, as per the red flags in

FinCENS’ guidance and that it may be covering illegal activity pursuant to the CSA, BSA and

other federal laws. Accordingly, TuCoop asserts that it is entitled to terminate its relationship with

3G and close its bank accounts at TuCoop. Failure to do so may expose TuCoop to fines and

sanctions by FinCen.

IV. FIRST CAUSE OF ACTION

(Declaratory Judgment)

23. TuCoop reasserts all the paragraphs above stated.

24. The scheme devised by 3G for the transferring of marijuana proceeds out of Puerto

Rico through the interstate commerce using third parties and masking the real source of the

financial transaction is illegal pursuant to 18 U.S.C. §§1956 and 1957, inasmuch as it attempts to

circumvent the BSA and FinCEN’s guidance, and the legal requirements of the FRNY.
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25. Because 3G’s payment scheme utilizing the Fedwire to transfer funds from the

MRB out of Puerto Rico presents a “red flag” under FinCen’s guidance, TuCoop maintains that it

has all legal authority to close Defendant’s account. 3G has contested TuCoop’s authority to do so

and has threatened with litigation.

26. In view of the above, it is respectfully requested from the Court to declare that,

based on the applicable Federal laws and regulations, TuCoop is entitled to close 3G’s accounts

with the financial institution.

WHEREFORE TuCoop requests the Court to declare that TuCoop may terminate its

relationship with 3G and close its accounts in the institution based on suspicious and/or illegal

scheme related to the MRB.

In San Juan, Puerto Rico, on this 7th day of June 2023.

S/OSVALDO CARLO LINARES

OSVALDO CARLO LINARES
USDC/PR126602
E-mail: ocarlo@carlolaw.com

S/ LYDIA M. RAMOS CRUZ

LYDIA M. RAMOS CRUZ
USDC/PR 214104
1509 López Landrón
American Airlines Bldg, PH
San Juan, Puerto Rico 00911
Tel: (787) 508-2525
E-mail: lramos@ramoscruzlegal.com
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