A significant hemp business dispute has emerged between North Carolina-based Asterra Labs and Texas-based MC Nutraceuticals, involving allegations of fake wire transfers, unpaid debts, and political pressure tactics. The conflict, detailed in a court filing submitted May 1, centers on more than $1.5 million allegedly owed to Asterra Labs.
Allegations of Fraud and Unpaid Debts
In federal court filings, Asterra Labs accused MC Nutraceuticals and its founders, Bret and Jeffrey Worley, of using fake wire-transfer confirmations while failing to pay over $1.5 million. These allegations are part of Asterra’s counterclaims in response to a lawsuit initially filed by MC Nutraceuticals. Asterra and Rise Capital, an entity associated with Asterra, have further accused MC Nutraceuticals of fraud, racketeering, and operating a “Ponzi-like” business model, according to a Hemp Today report. Asterra’s filing argues it possesses sufficient evidence to support its claims and urged the federal court to not dismiss the case.
The dispute reportedly grew out of a partnership formed in late 2024, where Asterra supplied hemp-derived products and MC Nutraceuticals handled sales and distribution. By mid-2025, the unpaid balance allegedly exceeded $1.5 million. Asterra’s attorney, Alicia Jurney, stated that MC Nutraceuticals was allegedly operating with negative cash flow for months, suggesting Asterra would not have entered the agreement if this financial instability had been known.
Political Connections and Counter-Allegations
The legal proceedings have drawn attention due to the political connections of Asterra’s principals. MC Nutraceuticals’ initial lawsuit accused Asterra principals, including North Carolina state Representative John Bell and Rise Capital founder Harry Smith, of threats, intimidation, and political pressure. Representative Bell, who is chairman of the House Rules Committee, has faced scrutiny for his ties to the hemp industry while simultaneously advocating for hemp regulation. He denies any conflict of interest.
Harry Smith, former chairman of the University of North Carolina Board of Governors, is also a prominent Republican figure. The case has been described as a collision of hemp industry finances, state political influence, and the evolving market for hemp-derived cannabinoids. MC Nutraceuticals founder Bret Worley also allegedly claimed connections to former President Donald Trump, suggesting he could leverage these within the administration, according to correspondence cited by The Assembly and Axios Raleigh in earlier reporting.
The conflict intensified after MC Nutraceuticals allegedly missed payments exceeding $1 million around Memorial Day 2025. Screenshots published by The Assembly and Axios Raleigh indicated messages from Smith to Jeffrey Worley, including threats of imprisonment. MC Nutraceuticals also accused Bell and Smith of attempting to use political influence and intimidation related to their North Carolina connections, though court filings reportedly did not directly substantiate claims that Bell personally threatened to use his government position.
Regulatory History and Financial Instability
Asterra’s legal team referenced a previous investigation by the Colorado Attorney General involving MC Nutraceuticals. In that case, MC Nutraceuticals agreed to pay $50,000 to settle allegations of misrepresenting the source, ingredients, and characteristics of certain hemp products. While MC Nutraceuticals denied wrongdoing, it was barred from selling cannabis products in Colorado.
MC Nutraceuticals, established after the 2018 Farm Bill, initially focused on supplying bulk CBD ingredients before shifting towards intoxicating hemp-derived compounds such as delta-8 THC, HHC, and THCa as the broader CBD market experienced changes. In a separate legal matter, North Carolina-based First-Citizens Bank & Trust Co. has sued MC Nutraceuticals, the Worleys, and related entities in federal court in Texas, alleging failure to repay approximately $1 million under a 2023 loan agreement.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Hemp Gazette does not provide medical recommendations, diagnoses, or treatment plans. Always consult a qualified healthcare practitioner before making any decisions regarding your health or any medical condition. Statements concerning the therapeutic uses of hemp, cannabis, or cannabinoid-derived products have not been evaluated by Australia’s Therapeutic Goods Administration (TGA). Medicinal cannabis products in Australia are accessed via prescription pathways under TGA regulation.
