Investor sues Will Allen’s Milwaukee venture as for-profit urban farm sprouts weeds

Thomas Schmitt (left) and Will Allen are shown at the site of a proposed urban farm location at N. 10th St. and W. North Ave. A school could also be opened at the site. Photo by Bruce Vielmetti.

The lawsuit lists six causes of action. It claims three kinds of misrepresentation by Schmitt and Allen along with breach of fiduciary duty.

By Bruce Vielmetti
Milwaukee Journal Sentinel
Nov 29, 2015

Excerpt:

A Racine County woman claims her accountant, Thomas Schmitt of Greenfield, misled her into investing $200,000 in a company he and Allen started called Will Allen Farms LLC, a “loss-laden” start-up that Schmitt said would cut her tax bill immediately and possibly return capital gains in the future. Debra Hoyer’s timely investment would also help the company obtain $3 million in financing from a private equity firm, she claims she was told.

Hoyer, a nurse who works in medical equipment sales, says Schmitt told her the company was developing an aquaponics farm at a former industrial laundry on Milwaukee’s near north side. But the site is now mostly an eyesore to neighbors, with little cleanup and no farming taking place.

Hoyer’s lawsuit names both men and their company as defendants and seeks damages for her taxes, penalties and interest owed to the IRS, as well as the return of her $200,000.

The defendants say Hoyer is just an investor who got cold feet and whose claims will now further hurt the business’ prospects.

Read the complete article here.