Prosecutors for the U.S. legal professional’s workplace within the Eastern District of California have launched a grand jury subpoena, calling for data from Californian marijuana based mostly firms, together with the mother or father firm of Weedmaps.

Criminal prosecutors for the U.S. legal professional ordered data from 30 hashish firms, together with Ghost Management Group LLC, proprietor of the subsidiary Weedmaps. Through its web site, Weedmaps not solely gives shoppers with lists of close by hashish retailers, it additionally permits shoppers to seek out retail offers, place supply orders, and charge evaluate and hashish shops.

Among the factors of curiosity throughout the subpoena, the prosecution calls for paperwork surrounding marijuana companies famous on Weedmaps, in addition to data documenting the web site’s on-line ordering service. Additional data sought by the federal government pertain to different items of knowledge saved by Weedmaps, together with notes on its employees, accounting practices and enterprise buyers. More particularly, the calls for prolong to communication with, and funds made to federal, state and native staff, elected officers, and any candidates for these places of work.

While intentions behind the preliminary investigation stay unclear, our Orange County cannabis business lawyers imagine the requests outlined inside this subpoena sign early phases of a probe. An essential part of the request seems to encompass a set of data related to providers offered by Weedmaps that enable for web generated marijuana purchases.

Terra Tech (now generally known as Onyx Group Holdings following a merger) and CannaCraft are among the many firms for which the subpoena requests paperwork. CannaCraft is licensed for hashish manufacturing, whereas Terra Tech holds a retail license by way of a subsidiary.

The prosecution’s name for documentation will doubtless search to find out whether or not or not Weedmaps, and others, have adhered correctly to the state of California’s stringent cannabis regulations. Under federal regulation, to ensure that the prosecution to efficiently prosecute an organization, it should present {that a} hashish entity is non-compliant  with California’s hashish laws.

While federal regulation nonetheless prohibits the possession and sale of marijuana, Congress has to this point lower off funding to the Justice Department, in a transfer to dam the pursuing of such instances, as long as the businesses or people in query are complying with their state’s medicinal marijuana laws.

Shortly after Colorado legalized marijuana use, federal prosecutors swooped in and made an effort to pursue firms showing to be in basic violation of the state’s hashish laws.

Implications
Unlicensed hashish companies have troubled law-abiding companies to no finish. Either by milking licenses, then siphoning marijuana off into the illicit market, solely to undercut authorized storefront worth factors. A Californian U.S. legal professional’s workplace investigation into Weedmaps and its enterprise associations alerts a doable change from the ‘hands-off’ strategy the federal authorities has proven towards state marijuana laws, to this point.

It additionally highlights the doable outcomes related to taking a threat in conducting unlawful enterprise dealings, and sends a really clear message that unlicensed companies can not anticipate to hold on unlawfully with out fearing the implications for these actions.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary firms, sufferers, medical doctors and people going through marijuana costs. Call us at 714-937-2050.

Additional Resources:
California Marijuana Laws Overview (Medical Marijuana, Proposition 64, Cannabis Taxes, and many others.)

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