Hussein Ahmad Rakine Speedy Distribution Lawsuit

Summary of the Complaint

Background:

Just Brands, LLC (JBL), a company that sells hemp and cannabinoid products, is suing its former president, Hussein Ahmad Rakine, and several others, including Hassan Ahmad Rakine, Ali Rakine, Sohail Mitha, and two companies (Speedy Distribution, Inc. and ASH Group of Florida, Inc.). The lawsuit claims these individuals and companies engaged in fraudulent business practices that harmed JBL financially.

Key Allegations:

Breach of Trust and Unfair Business Practices:

Hussein Rakine, while serving as JBL’s president, allegedly used his position to benefit his own businesses at JBL’s expense.
He arranged for JBL to buy products at inflated prices from Speedy Distribution, a company he and the other defendants owned.
Legal Battle: Just Brands, LLC Takes on Hussein Ahmad Rakine, Speedy Distribution  paid over $2 million for products that could have been bought at a lower price elsewhere.

Illegal Product Sales:

Hussein allegedly used JBL’s money ($162,000) to buy nicotine vapes from a Chinese supplier, even though JBL does not sell nicotine products.
Instead of sending these vapes to JBL, he had them delivered to Speedy Distribution, where they were sold for personal profit.

Kickback Scheme:

JBL discovered that Hussein directed JBL’s business to another vendor, Vapor Artillery, at inflated prices, in exchange for illegal kickbacks.
Under his leadership, JBL paid nearly $6 million to Vapor Artillery, despite having an in-house facility to produce the same products at a lower cost.

Breach of Employment Contract:

Hussein violated his contract by disclosing JBL’s private business information, failing to act in JBL’s best interests, and continuing to spy on JBL after leaving the company.
He also engaged in unfair competition by selling competing products.

Legal Claims:

JBL is suing for:

Breach of fiduciary duty (Hussein misused his role for personal gain).
Interfering with JBL’s business relationships (steering JBL’s suppliers and customers away).
Unjust enrichment (illegally profiting from JBL’s funds).
Civil conspiracy (working with others to defraud JBL).
Breach of contract (violating terms of his employment agreement).
Breach of good faith and fair dealing (not acting in JBL’s best interest).

What JBL Wants:

Over $50,000 in damages for each claim.
Return of stolen funds.
Punitive damages to punish the defendants.
A jury trial.

Bottom Line:

JBL claims that Hussein Rakine and his associates used JBL’s money and business connections for their own profit, engaging in fraud and unfair practices that cost the company millions. JBL is seeking financial compensation and legal accountability.