Business disputes between U.S. Hemp companies have escalated into accusations of fake wire transfer, unpaid loans, political pressure tactics, and threats related to the collapsing CBD and hemp market.
Asterra Labs of North Carolina accused Texas-based MC Nutraceuticals, and its founders Bret Worley and Jeffrey Worley in a May 1 court document, using phony wire transfer confirmations to avoid paying Asterra more than $1.5 Million that was allegedly owed. Asterra submitted the court filing to federal courts as a part of its effort to preserve counterclaims that MC was trying to dismiss.
Asterra’s allegations are in response a lawsuit filed by MC, which exposed the deep ties that exist between North Carolina hemp business circles and political circles. In it, MC accused Asterra principals — including state Rep. John Bell and Rise Capital founder Harry Smith — of threats, intimidation, and political pressure after disputes emerged over the alleged debt owed to Asterra.
Business & politics
Asterra Labs joined the rapidly growing intoxicating hemp sector of North Carolina, which was largely unregulated until 2025. Bell is under fire for blocking reforms in the legislature due to his industry affiliations. He claims that he has no conflict of interests and points out the double standard when other lawmakers work in industries regulated by them.
This company manufactures hemp-derived THC in the form of gummies or pre-rolls, and also supplies white label products. Asterra’s report from late 2025 showed that roughly 60% of its revenue was generated by white-label goods for other brands. Asterra also sold their own line of “Southern Ease”.
Smith stated late last year, that Rise intended to close or sell Asterra Labs due to the growing federal pressure against intoxicating products made from hemp. However, it is not clear what their current status of operation is.
‘Ponzi-like’
Asterra and Rise Capital countersued MC and accused the Texas-based company of fraud, racketeering as well as operating a Ponzi-style business model. MC’s filing stated that the company failed to honor financial obligations and misrepresented their products. They also attempted to recruit Asterra employees.
According to the document, Asterra’s claims are supported by “more than adequate” evidence. The federal court is urged not to dismiss its case.
Asterra counterclaimed and filed subsequent responses to MC’s suit. These allegations of fake wire transfer were made.
Politic web
Not only has the case attracted attention because of its financial value, but because it is also swirling in North Carolina’s politics, the suit becoming a collision between the hemp industry, the state’s power, and the remaining CBD gold rush.
Bell of Asterra Labs is chairman of House Rules Committee, a powerful committee in the legislature. Bell also happens to be one of most influential Republicans. Bell has successfully positioned himself both as an advocate of hemp regulation and the owner of a hemp business at the heart the controversy.
Smith was formerly the chairman of University of North Carolina Board of Governors. He is a Republican who once held a position of power, but whose relations with leaders of state Senates deteriorated over time.
Alicia Jurney is the Raleigh lawyer who represents Asterra and Rise Capital. She has been involved in several cases with high profile political connections in North Carolina.
Jonah Garson – the attorney for MC – is the North Carolina Democratic Party’s first vice chairman.
Trump ties?
This dispute arose from MC’s partnership with Asterra in 2024, against the backdrop North Carolina’s unregulated market for hemp-derived cannabinoids, which Bell had previously described as “the Wild, Wild West.”
Asterra provided the products, while MC was responsible for sales and distribution. MC allegedly then fell behind in payments owed to inventory and other business obligations.
According to MC’s initial complaint, Asterra agreed to assist MC in growing its hemp products business through distribution, marketing, and access to MC’s existing customer base. MC stated that it thought Asterra’s connections with Bell and Smith through Bell and Smith would also be helpful to the partnership.
Bret Wrley, MC’s founder, allegedly claimed ties to Donald Trump, through a close relationship with the daughter of Trump’s chief of Staff, suggesting he would be able leverage his connections in the Trump administration. This was according to The Assembly, Axios and Axios.
Balance of $1.5 Million
The unpaid balance was reported to have reached more than $1,5 million by mid-2025.
Asterra strongly disputed MC’s portrayal of the partnership, arguing MC — not Asterra — was already financially unstable before the companies joined forces.
Asterra lawyer Jurney claimed that MC had been running on a negative cashflow for many months. Asterra argued it would not have done the deal if they knew MC’s financial situation was already being scrutinized by Colorado regulators.
Colorado case
The reference was to a Colorado attorney general’s investigation, in which MC paid $50,000 as a settlement to allegations that they misrepresented hemp product characteristics and ingredients. MC admitted to no wrongdoing but was banned from selling cannabis in Colorado.
Around Memorial Day in 2025, MC allegedly missed paying Asterra over $1 million.
In an earlier report, documents cited showed that the Worleys agreed in writing to pay Asterra $50,000 per day in order to try to settle the debt. Relationship ended a few days later.
Threats escalate
According to screenshots previously published by The Assembly in North Carolina and Axios in Raleigh, Smith informed Jeffrey Worley via text that his intention was “to throw you and son into jail.” Bret Worley works as a business partner for MC.
Smith, of Rise Capital, allegedly sent a message saying: “Pay Us or Go to Prison Right Here in NC Jeff” and that he is “beyond confident [sic]The Worleys will be found guilty of felonies.
MC accused Bell and Smith as well of attempting political intimidation and influence based on their North Carolina connections. Nonetheless, prior reporting indicated that court filings did not directly substantiate Bell’s explosive allegations that he threatened to personally use his position as a government official against MC.
MC is facing a bank lawsuit
In a separate case, North Carolina-based First-Citizens Bank & Trust Co. sued MC Nutraceuticals, the Worleys and related entities in federal court in Texas, alleging they failed to repay roughly $1 million under a 2023 loan agreement.
MC Nutraceuticals was founded by the Worleys following the passage of Farm Bill 2018. The business began with bulk CBD before expanding into hemp-derived intoxicants such as HHC, THCa, and delta-8 THC.