Connecticut’s legal weed market just got hit with a reality check. State officials say more than 70 businesses shelled out big bucks for cannabis licenses that never actually existed.
The Attorney General’s Office is going after two men they claim masterminded the whole thing. The lawsuit, filed earlier this month, puts a $2.5 million price tag on the alleged fraud—and it’s rattling trust in an industry already under heavy scrutiny.
The Scam That Fooled 70+ Businesses
It sounds like a plot from a Netflix documentary. Two men, Michael Tedesco and Zafir Iqbal, allegedly created a pipeline of fake cannabis licenses and sold them to eager entrepreneurs hoping to get in on the green rush.
One of them, Tedesco, ran a company called MAKECTBETTER LLC. The other, Iqbal, was an associate. The duo reportedly pitched their services as legitimate channels to securing official state cannabis permits.
But none of it was real.
Tedesco and Iqbal allegedly charged tens of thousands per “license.” Some victims reportedly paid upwards of $80,000, believing they were on the fast track to a legal dispensary or cultivation business.
The state says this scheme ran undetected for months. Possibly longer.
The Attorney General Isn’t Holding Back
Attorney General William Tong is livid—and he’s not mincing words. In his public statement, Tong said, “These individuals exploited the hopes and dreams of entrepreneurs looking to build a legal cannabis business. We will hold them accountable.”
The lawsuit, filed in Hartford Superior Court on July 3, accuses Tedesco, Iqbal, and their LLC of violating the Connecticut Unfair Trade Practices Act (CUTPA). The state wants restitution for victims and is seeking $2.5 million in damages.
Tong’s office says the men misrepresented themselves and the legitimacy of their offerings. In fact, they allegedly offered licenses in categories the state hadn’t even opened for applications yet.
How It Worked—And Why It Did
This wasn’t a back-alley operation. According to documents, Tedesco and Iqbal used contracts, business emails, and even incorporated state terminology to make the scheme feel real.
They promised prospective clients quick access to limited state cannabis licenses—many of which are issued through a rigorous and highly selective lottery system.
People were told they could bypass the lottery. Just pay a premium.
It worked for one simple reason: demand.
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Connecticut legalized adult-use cannabis in 2021.
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Licenses are extremely limited and highly competitive.
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Costs to enter the legal market legally can already soar past $100,000 with application and setup fees alone.
Desperate entrepreneurs, especially those lacking legal support or insider knowledge, were easy prey.
A Snapshot of the Damage So Far
There’s no full tally yet, but the state estimates over 70 businesses may have been affected. Some of them had already begun investing in properties and renovations based on the belief their licenses were real.
| Detail | Number/Amount |
|---|---|
| Estimated Businesses Impacted | 70+ |
| Individual Payments | $30,000 – $80,000 |
| Total Estimated Scam Value | $2.5 million |
| Company Used in Scheme | MAKECTBETTER LLC |
| Lawsuit Filed | July 3, 2025 |
Some victims have shared their stories anonymously with local media. One said he drained his savings to cover licensing and real estate costs, only to learn he never had legal permission to operate.
It’s heartbreaking—and enraging.
What This Means for Connecticut’s Cannabis Future
The ripple effect could be significant. While the legal cannabis market is still new in Connecticut, this scandal adds another layer of complexity and mistrust for would-be business owners.
There’s concern that it could discourage smaller, independent entrepreneurs—the very groups equity programmes were supposed to support—from entering the market.
Industry advocates worry that without clearer communication from regulators, scams like this may continue.
Then there’s the bigger question: how did this happen in the first place?
“We need to make our licensing process more transparent,” said one legal dispensary owner who asked to remain unnamed. “People are falling through the cracks.”
The Defendants Haven’t Spoken—Yet
Neither Tedesco nor Iqbal has responded publicly to the allegations. Attempts by local reporters to contact them went unanswered.
Court records show the state is seeking financial restitution, civil penalties, and an order preventing the pair from engaging in cannabis-related business activities going forward.
One former client of theirs is now considering a private lawsuit. “I’m not just out $60,000,” he told a journalist. “I’m out a year of my life and my trust in the system.”
This lawsuit is just getting started. But in the meantime, Connecticut’s cannabis regulators will have to answer some uncomfortable questions—about oversight, access, and how something this big went unnoticed.
David Johnson is a respected writer known for his expertise in crafting compelling articles about cannabis. With a passion for exploring the intersection of cannabis, health, and wellness, he sheds light on the therapeutic properties and potential uses of this versatile plant. David’s in-depth analysis and thought-provoking commentary offer readers a deeper understanding of the evolving landscape of cannabis legislation, consumption methods, and industry trends.
