Beware of those selling snake oil…..
#cannabisindustry – “A California cannabis attorney and his business partners helped people obtain social equity licenses in Los Angeles only to trick them into handing over their cannabis businesses and “every penny” of profit generated, according to state court lawsuits accusing the defendants of targeting low-income residents with no legal education….
Through a series of illegal, unconscionable agreements, defendants in bad faith — and in breach of their fiduciary duties — defrauded plaintiff into giving defendants all the profit generated by the retail cannabis business operated under his license, as well as all control over the business defendants promised plaintiff would own,” according to both lawsuits, which were filed on Friday. “And even though defendants were skilled business operators with years of regulatory, legal and industry experience, plaintiff was forced to sign the agreements under extreme time constraints and duress, and without any opportunity to consult with counsel.””
#californiacannabis – “The California Department of Cannabis Control is disputing a statistic used by the San Bernardino County Sheriff’s Department on NBC Nightly News.
The Sept. 7 edition of the NBC broadcast features a report on human trafficking in the cannabis industry. Before the report came the first surprise for cannabis industry pros, when Lester Holt even prefaced the it with the claim of a new trend from law enforcement.
That trend? Victims of human trafficking were growing cannabis that ended up on the shelves of permitted California dispensaries. Cut to NBC’s crew on a ride along with the sheriff in the Mojave Desert on a raid. The property features a spread of greenhouses and a voiceover with claims of illegal marijuana being grown with illegal methods per the sheriff…..
“No information from our licensing, compliance, or enforcement divisions corroborate these claims. Unsubstantiated claims destroy public confidence in the legal cannabis market and do a disservice to the thousands of businesses working to follow the law. Our enforcement division works closely with federal, state and local partners, including the San Bernardino Sheriff’s Office, and will continue to provide coordinated resources and support to aid in their efforts to combat the illegal market,” the state told L.A. Weekly.
Most experts in the industry agree the exact opposite of what the sheriff claimed is happening. The marketplace is so flooded with legal product, it has crashed the market price of marijuana. Many farmers chose not to plant this year because it would not be worth their time. This flood of products on the recreational market is the main point of financial strife for the legacy communities that backboned California’s market for decades. It is undeniable that there hasn’t been a true drought since 2019 and there is a ton of pot left over annually.”