INNOVATIVE HEALING SOLUTIONS v PARAGON ET AL
- Jason Beck
- May 14
- 3 min read
Dale Schafer Esq
5/13/2025
Original High At 9 News Article

A CONTRACT DOESN’T STOP BAD BEHAVIOR BUT IT MIGHT
PROTECT YOU LEGALLY
A dispute has developed in Ohio between Innovative Healing
Solutions, LLC (Innovative), a licensed cannabis processor, and
Paragon Development Group, LLC (Paragon), a licensed
cultivator, and two owner/managers, over the delivery by Paragon
to Innovative of flower and trim that turned out to be hot hemp, or
contaminated biomass, in violation of Ohio cannabis rules.
Innovative had its license suspended because of the bad biomass
and now wants Paragon to pay at least 1.5 million dollars to
compensate for the problem.
According to the complaint, Paragon had delivered compliant
biomass several times in 2024. Biomass, under Ohio law,
includes flower, trim, and shake. Hot hemp is not lawful to be
introduced into the cannabis supply chain. Biomass contaminated
with biologicals or pesticides are not allowed in the cannabis
supply chain either. Additionally, biomass that has been fresh
frozen can not be remediated if it contains contaminants so it is
basically useless. To ensure that the biomass rules are followed,
a manifest, entered into the METRC track and trace system, must
accurately reflect the actual product being delivered. The manifest
must also include testing results to confirm the product is what it
is represented to be and free from contaminants.
Innovative alleges that there were three deliveries from Paragon
that violated Ohio cannabis rules, and that two owner/managers
of Paragon, Jason Wilson (Wilson) and Mark Nelson (Nelson)
made the deliveries knowing the manifests were false and
products were contaminated. These deliveries occurred between
January and March of 2025.
The first illegal delivery was on January 24, 2025 for 335 pounds
of biomass with a manifest stating the material was contaminant
free. The biomass had been fresh frozen. There was an additional
25 pounds not on the manifest and when questioned, Wilson
claimed he had talked with the head of the state cannabis control
agency, the DCC, and that the biomass was within the 10%
variance allowed in the rules. It is alleged this information was
knowingly false because the biomass was contaminated and the
25 pounds was hot hemp. It is alleged both Wilson and Nelson
knew the information was false.
The second illegal delivery was on February 6, 2025, when 215
pounds of biomass arrived with a clean manifest. Further testing
confirmed that there was hot hemp and contaminated biomass
included in the delivery. Innovative alleges both Wilson and
Nelson knew the biomass violated Ohio cannabis rules.
The third illegal delivery occurred on March 5, 2025. Wilson
arrived with approximately 25 pounds to replace the prior hot
hemp biomass plus an additional 100 pounds not ordered. Wilson
claimed that the managing partner of Innovative had approved the
extra 100 pounds. Innovative alleges that the biomass was hot
hemp and contaminated, and that the managing partner had not
approved the extra biomass. The complaint alleges that both
Wilson and Nelson knew there was no approval of the extra
biomass and that the biomass was contaminated.
Because of the failed testing, the presence of hot hemp, and the
violations of the METRC and manifest rules, Innovative had its
license suspended.
The complaint against Paragon sounds in fraud, breach of
contract, and violation of Ohio law. Innovative seeks at least 1.5
million in monetary damages, plus the loss of profits, testing
costs, cleanup costs, and damage to equipment from the hot
hemp. The essence of the complaint is that Paragon, Wilson, and
Nelson breached their contract with Innovative by knowingly
selling non-compliant biomass, using false testing and manifests,
and lying about conversations with critical people. The claims are
fraud, negligent misrepresentation, negligence per se (violation of
law), breach of contract, conversion, theft by deception, and civil
conspiracy. The lawsuit is just getting underway so these are the
allegations of Innovative. Paragon, Wilson, and Nelson will have
their opportunity to respond and their position will come out.
This should serve as a cautionary tale. A good contract can help
you seek damages and hopefully be made whole, should bad
things happen. However, a contract is just a piece of paper, and
that will never stop humans from lying, cheating, or stealing from
you. Even with a good contract, you must be vigilant against
malignant people.
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