A fugitive charged with an audacious $35 million financial fraud was arrested in San Diego after days on the lam, authorities said:
The apprehension of Costello was welcome news to Steven Selna, an Oakland, California, lawyer whose client, CCSAC Inc., was one of the three cannabis companies allegedly swindled by Costello.
The criminal indictment against Costello accuses him of fraudulently diverting $300,000 of CCSAC's money deposited with Pacific Banking to purchase shares in a publicly traded shell company in 2019 for the purposes of ultimately completing a reverse merger with Costello's then privately held company,GRN Holding's most recent SEC filing says Costello resigned as CEO of the company in April, the same month that he sold 144 million shares of GRN Holding to its current CEO for $140,000.
But contrary to that claim, the GRN Funds checking account at the credit union"has a balance of $15.35 as of September 9, 2022," the indictment said. The indictment says that when Costello solicited funds from investors, he made false claims that included saying he graduated from the University of Minnesota and had a master's degree in business administration from Harvard.
That same year, Costello had GRN Holdings issue a press release stating it had nonbinding letters of intent to acquire at least 10 companies, and that in the following months it issued 10 press releases announcing the completion of due diligence for each company, the indictment said.But"GRN Holding Corporation never completed the acquisitions of the companies, even though Justin Costello was an affiliate, shareholder, owner, or manager of each company," the indictment said.
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