Federal Prosecutors Charged Founder With Fraud
David Dinenberg faces five fraud counts for allegedly misusing investor funds at his cannabis tech firm.
Updated on Sept. 30, 2026 in Financial Crime
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Federal prosecutors have filed charges against David Dinenberg, the founder of Kind Financial, for allegedly misappropriating investor funds. Dinenberg is accused of supplying false business information to investors and diverting company capital for personal use.
Why it matters
The case highlights the risks associated with investments in emerging industries where oversight may be developing. Prosecutors are now seeking the forfeiture of $9 million allegedly raised through the scheme.
Federal prosecutors have charged David Dinenberg with five counts of fraud. The case is being handled through a federal court filing in Philadelphia.
The players
David Dinenberg
He is the founder of Kind Financial who is accused of embezzling company funds for personal expenditures.
Kind Financial
This company was founded in 2012 to serve the cannabis industry but currently has dark websites.
The details
Dinenberg allegedly used company funds to pay for personal tuition, memberships, and rentals. He is also accused of stealing $175,000 in cannabis fees from Rhode Island, though he has admitted to stealing $80,000 of that total amount.
Timeline
Dinenberg started Kind Financial in 2012.
MasterCard terminated the KindPay service in 2021.
Dinenberg resigned from Kind Financial on May 4, 2023.
Federal prosecutors filed charges against Dinenberg on September 29, 2026.
Legal Context
This case reflects broader legal scrutiny of startups operating in the cannabis sector. It follows a historical pattern where firms face heightened federal oversight after losing critical payment processing partnerships.
Investors who contributed capital to Kind Financial may be impacted by the ongoing forfeiture proceedings. Residents should be aware that the firm has ceased operations and its primary digital presence is now offline.
The takeaway
The case serves as a reminder for investors to perform rigorous due diligence when funding private startups in emerging markets. Tracking a company's past regulatory or partnership terminations can often reveal underlying instability before losses occur.
Further reading
Learn more about local investigations in our Financial Crime section.
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