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The author of this article is Richard Keyt, an Arizona business law attorney who is the creator of this Arizona medical marijuana law website. Connect with Richard at 480-664-7478 or on Google+

Tax Planning for Marijuana Dealers

Benjamin Moses Leff, Associate Professor of Law, American University Washington College of Law, published an excellent law review article about Internal Revenue Code Section 280E, a troublesome tax statute for state-legal medical marijuana dispensaries.

“In recent years, many states have legalized marijuana while the federal government has not. But marijuana industry insiders consider not federal criminal law but federal tax law to be the biggest impediment to the development of a legitimate marijuana industry. State-sanctioned marijuana sellers are required to pay federal income taxes pursuant to I.R.C. § 280E, a formerly largely symbolic provision that Congress enacted to punish drug dealers, but which now could potentially drive legitimate marijuana sellers underground.

This Article proposes a tax strategy that enables state-sanctioned marijuana sellers to avoid the impact of § 280E by qualifying as a tax-exempt organization. The IRS has already stated that a marijuana seller cannot be exempt under I.R.C. § 501(c)(3) because the so-called ‘public policy doctrine’ does not permit a charity to have purposes that are contrary to law. This Article proposes for the first time that the public policy doctrine does not apply to § 501(c)(4) organizations, which opens the door for marijuana sellers to qualify as tax-exempt. The organization would have to be operated to improve the social and economic conditions of a neighborhood blighted by crime or poverty by providing job training, employment opportunities, and improved business conditions for commercial development in the neighborhood, just like many existing community economic development corporations that run businesses.

This novel argument is more than just a ‘tax loophole’ to avoid the impact of § 280E. Rather, IRS recognition of tax-exempt status for marijuana sellers could actually provide a mechanism to resolve the federalism issues raised by the conflict between state and federal marijuana laws. A federal policy that incentivizes marijuana sellers to be nonprofit, neighborhood-based organizations in effect ties federal approval to local support.”

By |2015-04-06T18:57:50-07:00May 20th, 2014|Stories & Articles, Tax Issues|Comments Off on Tax Planning for Marijuana Dealers

Investor Alert: Marijuana-Related Investments

On May 16, 2014, the Securities and Exchange Commission published a detailed warning that is a must read for anybody who owns stock of or is considering purchasing stock of a company that provides  products products or services to state legal marijuana businesses.

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about potential risks involving investments in marijuana-related companies. 

The SEC has seen an increase in the number of investor complaints regarding marijuana-related investments.  The SEC recently issued temporary trading suspensions for the common stock of five different companies that claim their operations relate to the marijuana industry:

The SEC suspended trading in these companies because of questions regarding the accuracy of publicly-available information about these companies’ operations.  For two of the companies, the trading suspensions were also based on potential illegal activity (unlawful sales of securities and market manipulation).

Fraudsters often exploit the latest innovation, technology, product, or growth industry – in this case, marijuana – to lure investors with the promise of high returns.  Also, for marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances.  When publicly-available information is scarce, fraudsters can more easily spread false information about a company, making profits for themselves while creating losses for unsuspecting investors.

Risk of Prosecution for Marijuana-Related Companies.  If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution.  The Department of Treasury recently issued guidance noting: “

[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana.  Many states impose and enforce similar prohibitions.  Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”

Marijuana-related investments may be sold in unregistered offerings and may take many forms, including microcap stocks (low-priced stocks issued by the smallest of companies) such as penny stocks (the very lowest priced stocks).

Microcap Stocks

When you buy low-priced shares of a small company (e.g., you buy a stock that trades in the “over-the-counter” (also called OTC) market), you likely are investing in penny stocks or microcap stocks.  Microcap stocks are particularly vulnerable to fraudulent investment schemes because there is often limited publicly-available information about microcap companies.  Be cautious if you see red flags of potential microcap fraud such as:

  • SEC trading suspensions (the SEC has suspended public trading of the security)
  • E-mail and fax spam recommending a stock
  • Insiders own large amounts of stock
  • False or exaggerated press releases

Even in the absence of fraud, microcap stocks are among the most risky:

  • Information about microcap companies can be extremely difficult to find, making it less likely that quoted prices in the market reflect full and complete information about the company.
  • Many microcap companies are new and have no proven track record.  Some microcap companies have no assets, operations, or revenues.  Others have products and services that are still in development or have yet to be tested in the market.
  • The stock prices of microcap companies historically have been more volatile than the stock prices of larger companies.  Since low-priced stocks trade in low volumes, any size trade can have a large percentage impact.
  • The stock of microcap companies are often quoted on the OTC Bulletin Board (also called OTCBB) or OTC Link LLC (also called OTC Link).  OTCBB and OTC Link do not require companies to apply for listing or to meet any minimum financial standards.  Most of these companies do not meet the minimum listing requirements for trading on a national securities exchange, such as the New York Stock Exchange or the Nasdaq Stock Market.

Unregistered Offerings

Check the SEC’s EDGAR database and contact your state securities regulator to find out whether the marijuana-related company has registered its securities offering with the SEC or a state securities regulator.  If the offering is not registered, exercise extreme caution if you spot any of these red flags of potential investment fraud:

  • “Guaranteed” high investment returns.  If someone promises you a high rate of return on your investment, it likely is a fraudulent investment scheme.
  • Unsolicited offers, including through social media.  A new post on your wall, a tweet mentioning you, a direct message, an e-mail, a text, a phone call, or any other unsolicited – meaning you didn’t ask for it and don’t know the sender – communication regarding an investment “opportunity” may be part of a scam.
  • Pressure to buy RIGHT NOW.  Fraudsters may try to create a false sense of urgency or pitch the investment as a “limited time only” opportunity.
  • No net worth or income requirements.  To comply with federal securities laws, many unregistered offerings are limited to accredited investors and the seller should ask you about your net worth or income.

When investing in unregistered offerings, also consider these risks:

  • You may lose your entire investment.
  • You may not be able to sell the stock easily, and you may have to hold your investment indefinitely.
  • The company may not make information about its business or financial condition publicly available.

Research the Company

As with any investment, make sure you understand the marijuana-related company’s business and its products or services.  Carefully review all materials you are given and verify the truth of every statement you are told about the investment.

Pay attention to the company’s financial statements, particularly if they are not audited by a certified public accountant (also called a CPA).

If the company files reports with the SEC, review the most recent reports.

If the marijuana-related company is a microcap company that does not file reports with the SEC, ask your broker for the “Rule 15c2-11” file (the federal securities laws may require your broker to have certain information about the company).

If the marijuana-related company is offering securities in an unregistered offering, read the offering memorandum or private placement memorandum (also called PPM), and pay particular attention to any risk factors noted.  Review the terms of any subscription agreement or other agreements for the investment.

Search SEC.gov to see whether the SEC has taken any action against the company or anyone associated with the company.

For more information about how to research an investment, read our publication Ask Questions.

Research your Broker or Investment Adviser

Research the background of the individuals and firms offering and selling you these investments, including their registration/license status and disciplinary history:

  1. Search the SEC’s Investment Adviser Public Disclosure (IAPD) database.
  2. Search the Financial Industry Regulatory Authority (FINRA)’s BrokerCheck database.
  3. Contact your state securities regulator.

Additional Resources

FINRA Investor Alert: Marijuana Stock Scams
Investor Alert: Advertising for Unregistered Securities Offerings
Investor Alert: Don’t Trade on Pump-And-Dump Stock Emails
Investor Alert: Social Media and Investing – Avoiding Fraud
Microcap Fraud Spotlight 
Microcap Stock: A Guide for Investors
Department of the Treasury Financial Crimes Enforcement Network Guidance regarding BSA Expectations Regarding Marijuana-Related Businesses

Contact the SEC on SEC.gov:

Report possible securities fraud.
Report a problem.
Ask a question.

Stay informed

Receive Investor Alerts and Bulletins from the SEC’s Office of Investor Education and Advocacy (“OIEA”) by email or RSS feed.

Visit Investor.gov, the SEC’s website for individual investors.

By |2019-06-18T19:57:11-07:00May 16th, 2014|Medbox, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Investor Alert: Marijuana-Related Investments

Students Wonder About Marijuana-Themed University

CBS Denver:“Cannabis in the classroom — a new marijuana-themed university is hosting classes on the Auraria Campus in Denver, and not everyone is happy about it. Students might not find “Marijuana 101″ on the catalogs of the three universities that occupy Auraria Campus, but CBS4′s Rick Sallinger found it’s certainly being taught there”

By |2014-05-15T07:59:53-07:00May 15th, 2014|Colorado News, Stories & Articles|Comments Off on Students Wonder About Marijuana-Themed University

Mesa Nixes Zoning for Medical Marijuana Dispensary

arizona.newszap.com:  “A majority of the Mesa City Council voted to approve rezoning property to light industrial for a planned medical-marijuana dispensary at 6350 E. Main St., but legal property-owner protests in the area required at least a 6-1 vote, the council was told May 5.  The proposed business would have been in the Mesa Central CHAA – or Community Health Analysis Areas for Arizona’s medical marijuana program – with boundaries of Power Road, Country Club Drive, University Drive and Broadway Road, Gordon Sheffield, city of Mesa zoning/civil hearing administrator, told the planning board Feb. 18.  The city requires that medical-marijuana dispensaries be in industrial-zoned areas.  There is no industrial-zoned land in the CHAA,”

By |2017-02-12T07:40:47-07:00May 14th, 2014|Stories & Articles, Zoning|Comments Off on Mesa Nixes Zoning for Medical Marijuana Dispensary

The Ongoing Saga of Medbox

Southern Investigative Reporting Foundation:  Roddy Boyd, the author of “Tinkerer, Lawyer, Hustler, Lies: One Man’s Path to a Dope Fortune” wrote an April 17, 2014, Medbox article for the Southern Investigative Reporting Foundation.  All Medbox shareholders and people involved with Arizona medical marijuana dispensaries that used Medbox’ services should read the article.  Here are some quotes from the article:

Rishi Patel is on a mission: He is taking a hard look at business opportunities in the wake of Arizona’s decision to permit the sale of medical marijuana in dispensaries across the state. . . .

Patel had come across an ad from Prescription Vending Machines, a company helping folks like him get into the medical marijuana business, and in short order he was in a running dialogue with the company’s founder, an agreeable and talkative fellow named Vincent Mehdizadeh. From there, it wasn’t long before Patel and a pair of friends had struck a plan to help Prescription Vending Machines land a dispensary permit in Arizona.

Just before he wrote a very large check—his father was staking him the capital—Patel did a background search on Mehdizadeh.

After getting the report, Patel was astonished to see a laundry list of crimes and lawsuits; one more serious than the other, all of which Mehdizadeh was at the center. . . .

[Mehdizadeh] tells Patel that there has been a mistake, and that something somewhere is terribly wrong since he hasn’t been repeatedly sued or arrested. . . .

To correct the record, Mehdizadeh e-mails Patel a scan of his driver’s license and another background report. 

Shortly after the call ended, Patel opened up the files. As promised, the documents belonged to Pegah Vincent Mehdizadeh, a man from California whose spotless criminal record was the polar opposite of Pejman Vincent Mehdizadeh. . . .

And then in July 2011 Patel got his dispensary and within minutes knew that everything was wrong. The furniture was used, the location wasn’t what they’d bargained for, and even the vaunted dispensary system they’d been promised didn’t do what was advertised.

The quotes above are a small part of a very lengthy and troubling story.

By |2017-02-12T07:40:47-07:00May 13th, 2014|Medbox, Stories & Articles|Comments Off on The Ongoing Saga of Medbox

The Bud Light-ification of Bud

New York Times: “A joint might never be as easy to access as a can of beer or a cigarette. But thousands of people and millions of dollars are hard at work to make it as predictable and dependable as one. Call it the Bud Light-ification of bud.  There’s a pressing economic reason for the pot industry to get better if it is to survive, aside from its formidable legal challenges. The plant is relatively cheap and easy to grow, and not complicated to process either. Left to the whims of the open market — meaning ignoring taxes and regulations — the price of a joint could plummet to the price of a tea bag or a packet of sugar. So how will investors help the market mature while still making money?”

By |2017-02-04T07:39:00-07:00May 13th, 2014|Stories & Articles|Comments Off on The Bud Light-ification of Bud

A Convicted Thief & a Chiropractor Claim Their Pot Company Isn’t a One-Hit Wonder

Phoenix New TimesMedbox is a company that “features patented systems that dispense medication based on biometric identification . . . . [and] turn-key consulting services to the pharmaceutical industry”  Medbox (MDBX) is a publicly traded company whose stock value was $19.91 as of May 9, 2014, which gave it a market value of $587,857,682.  Medbox is a major player in the Arizona medial marijuana dispensary industry.

On May 8, 2014, the Phoenix New Times published a devastating story about Medbox written by investigative reporter Ray Stern.  Here are some interesting quotes from the story.

“Judging by its stock, this company truly is big time.  Its products and services, however, aren’t as impressive.  Medbox machines are by no means in widespread use in Arizona’s 80 medical-marijuana dispensaries.  One drawback of the devices, as the unit at BC Wellness Center demonstrates, is that customers can’t use them legally. . . .

We spent all this money for the machine, and the customer can’t use it. . . . But the machine isn’t crucial to the dispensary’s operation . . . . ‘We could do without it.’ . . .

It’s not a glowing review of the Medbox product from one of the two Arizona dispensaries in which New Times was able to verify the existence of working Medbox machines. . . .

Vincent Mehdizadeh — founder, inventor of the dispensing machine, senior strategist, and (until his recent resignation) chief operating officer — is a convicted felon. He pleaded guilty last year to stealing from immigrants by offering them bogus legal services, avoiding a prison sentence when he paid $450,000 in restitution to victims.  Medbox owns no factories, no buildings. It rents a West Hollywood office. Last year, it had revenues of $5.2 million but didn’t turn a profit. It ended the year with about $300,000 in the bank.  What Medbox does have, though, is impressive stock. . . .

The founder of Medbox generally goes by the name Vincent Mehdizadeh.  In U.S. Securities and Exchange Commission filings, however, he calls himself P. Vincent Mehdizadeh.  The P is for Pejman, listed as his true first name in a 2013 plea agreement with the Los Angeles County District Attorney’s Office — a deal that allowed him to escape serving four years in prison. A civil complaint filed in a California court by theft victim Abdul Ahmed states another a.k.a. for Mehdizadeh: Vince Zadeh. [See the Statement of Issues and Supporting Facts, Declaration of Abdul Ahmedts with Evidentiary Exhibits . . . Memorandum of Points of Authorities in Support of Prejudgement Attachment filed in this lawsuit.] . . .

Over recent months, Medbox has been the target of another writer, Roddy Boyd of the Southern Investigative Reporting Foundation, who wrote lengthy articles about it published on September 30, 2013, and on April 17 [See “What’s in a Name: The Ongoing Saga of Medbox“].  A week before Boyd’s most recent article appeared, Mehdizadeh resigned as director and COO of Medbox, saying in a news release he’d done so to make the company ‘less prone to attack.’  [Roddy Boyd is the author of another scathing story about Medbox and Mehdizadeh called “Tinkerer, Lawyer, Hustler, Lies: One Man’s Path to a Dope Fortune.”] . . .

The June 21, 2013, plea agreement and subsequent news releases by the California agencies involved in the case are available online and show that Mehdizadeh pleaded guilty to two counts of grand theft and admitted to a “special allegation of engaging in a pattern of related felony conduct involving takings in excess of $100,000.”  In addition to the hefty restitution order, he was sentenced to five years’ probation.

Read the article because it contains much more information about Medbox and its machines.

By |2017-02-12T07:40:01-07:00May 12th, 2014|Medbox, Stories & Articles|Comments Off on A Convicted Thief & a Chiropractor Claim Their Pot Company Isn’t a One-Hit Wonder

Feds Seek Prison for Rural Washington Pot Growers

Yahoo News:  “The green-cross storefronts of medical marijuana dispensaries are common in much of Washington, and the state is plowing ahead with licensing people to grow and sell recreational pot to adults.  But a federal trial scheduled to begin in the coming weeks for five people in Spokane suggests not all is OK with weed in the state.  Larry Harvey, a 70-year-old medical marijuana patient with no criminal history, three of his relatives and a family friend each face mandatory minimum sentences of at least 10 years in prison after they were caught growing about 70 pot plants on their rural, mountainous property.”

By |2014-05-12T08:08:33-07:00May 12th, 2014|Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Seek Prison for Rural Washington Pot Growers

Washington Dispensary Owner’s Lawsuit Claims Washington Cannot Tax Marijuana Sales

Bellingham Herald:  “A federal lawsuit is challenging Washington state’s authority to tax marijuana as long as marijuana remains illegal under federal law.  The case arises from the state’s attempt to collect sales taxes from a medical marijuana dispensary. But lawyer Douglas Hiatt, who filed it late Thursday, said it could throw a wrench in Washington’s plans for collecting taxes on recreational marijuana, too. . . . the dispensary’s operator, Martin Nickerson, who is simultaneously being prosecuted criminally for marijuana distribution and targeted by the state Department of Revenue for not collecting and remitting taxes on the pot he was allegedly distributing.”

By |2017-02-12T07:40:46-07:00May 10th, 2014|Stories & Articles|Comments Off on Washington Dispensary Owner’s Lawsuit Claims Washington Cannot Tax Marijuana Sales

Oklahoma Initiative Would Make Pot a Legal, Exportable Cash Crop

US News & World Report:  “Marijuana reform advocates hope Oklahoma will live up to its nickname – the Sooner State – by becoming the first U.S. jurisdiction to both legalize cannabis for personal use and allow it to be exported as a cash crop.  In the best-case scenario for pro-pot campaigners, there will be two initiatives on the November ballot: One that would allow medical marijuana and another more far-reaching initiative that would comprehensively dismantle status quo pot policies.

By |2017-02-12T07:40:46-07:00May 9th, 2014|Stories & Articles|Comments Off on Oklahoma Initiative Would Make Pot a Legal, Exportable Cash Crop

Colorado Lawmakers OK Special Bank for Marijuana Trade

Washington Post:  “the banking industry, which is federally regulated, is steering clear of anything to do with Colorado’s burgeoning marijuana industry. And that means the whole pot value chain – from grower to retailer to customer – is cash only.  In addition to making it harder for pot retailers to grow and manage a legitimate business, a cash-only enterprise is harder for the government to track for tax purposes and an easy target for criminals.  Wednesday, Colorado lawmakers . . . . approved a plan to setup a network of uninsured cooperatives that would offer basic banking services to pot businesses.

By |2014-05-08T18:44:57-07:00May 8th, 2014|Colorado News, Stories & Articles|Comments Off on Colorado Lawmakers OK Special Bank for Marijuana Trade

Donation Dilemmas

Tucson Weekly:  “someone told these caregivers—and a lot of folks in the medical marijuana community along with them—that all you have to do is call it a donation, and you’re legal. I would venture an educated guess that more than half of the medical marijuana community thinks it’s legal for patients and caregivers to just go around trading donations for meds. But the Arizona Medical Marijuana Act forbids patients or caregivers from selling marijuana, period. There aren’t any qualifiers in the law, such as ‘You can sell it if you don’t say you’re selling it, if you just call it a donation’.”

By |2014-05-08T06:49:01-07:00May 8th, 2014|Stories & Articles|Comments Off on Donation Dilemmas

World’s Largest Pot Farm

New York Post:  “Pot production is about to go industrial. Of course, you’ll have to head to Canada to take advantage of it.  CEN Biotech — a nutrition company best known for an amino acid supplement — is working on opening the “largest and most advanced” legal marijuana production facility in the world. The Ontario site will be able to grow 1.3 million pounds of pot from 50,000 plants — an operation that could produce $5 billion in sales per year when it starts producing in a few weeks after it passes government inspections.”

By |2014-05-08T06:37:14-07:00May 6th, 2014|Stories & Articles|Comments Off on World’s Largest Pot Farm

Science Behind the Munchies

havasunews.com:  “The munchies. That is, the well-known side effect of marijuana smoking that makes some users ravenously hungry.  We’ve all heard the jokes. But what about the science?  That, it turns out, is also of renewed interest.”

By |2014-05-03T08:11:26-07:00May 3rd, 2014|Stories & Articles|Comments Off on Science Behind the Munchies

Patients Exploit Arizona’s Medical Pot Law

Arizona Republic:  “He advertises himself as a medical-marijuana patient offering extra high-grade pot ‘with huge buds’ for a ‘reasonable donation.’  The seller’s Craigslist ad says those with medical-marijuana cards can purchase an ounce of high-quality pot — and get it delivered — for $250, about $150 less than what some medical marijuana dispensaries charge, he told The Arizona Republic.  . . . While Arizona’s medical-marijuana program is intended to be “purely medicinal,” some participants are exploiting the law by reselling marijuana they’ve legally purchased or grown, fueling the illegal drug market.

By |2014-05-03T08:06:43-07:00May 3rd, 2014|Stories & Articles|Comments Off on Patients Exploit Arizona’s Medical Pot Law

Two Men Cease to be Directors of Zoned Properties, Inc.

On April 3, 2014, Irvin Rosenfeld and Bryan McLaren were elected to be Directors of Zoned Properties, Inc., a lessor of land, facilities and equipment to the medical marijuana industry.  On April 25, 2014, ZPI filed a Change of Officer/Director form with the Arizona Corporation Commission to add Irvin Rosenfeld and Bryan McLaren as directors.  On April 28, 2014, ZPI filed a Change of Officer/Director form that notified the ACC that Rosenfeld and McLaren ceased to be directors of the corporation.  The sole director listed on the ACC’s website as of April 28, 2014, was Leonard C. Salgado.  Rosenfeld and McLaren were directors for 25 days.

By |2019-06-14T08:27:55-07:00April 30th, 2014|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Two Men Cease to be Directors of Zoned Properties, Inc.

Colorado Symphony Links up With Pot Industry

ABC News:  “The Colorado Symphony Orchestra said Tuesday it will play a series of “cannabis-friendly” fundraising concerts sponsored by the state’s burgeoning pot industry.  The state’s only full-time professional orchestra hopes the unusual shows dubbed ‘Classically Cannabis: The High Note Series’ will boost its audience as it struggles with dwindling attendance and shrinking budgets.”

By |2019-06-14T08:28:24-07:00April 30th, 2014|Colorado News, Stories & Articles|Comments Off on Colorado Symphony Links up With Pot Industry

Vets are Treating Dogs for Marijuana Highs

havasunews.com:  “With medical marijuana legal in Arizona, emergency rooms for pets are seeing more and more dogs that have eaten marijuana in brownies, cookies, oils and other forms.  “People come in and their dogs are lethargic, with their eyes rolling in the back of their heads, or they’re unconscious,” said Dr. Billy Griswold with Emergency Animal Clinic, which has five Valley locations.  Griswold said that over the past few years he has treated at least 24 dogs each month that have eaten marijuana.”

By |2014-04-28T20:31:15-07:00April 28th, 2014|Stories & Articles|1 Comment

Marijuana Edibles: You May Not Be Getting What You Think

CBS Denver:  “The State of Colorado will start phasing in mandatory lab testing of marijuana edible products on May 1. Currently, marijuana product testing of any kind has been performed strictly on a voluntary basis.  As Colorado ramps up its lab testing, CBS4 requested permission to perform independent lab tests of edible products but was forbidden by the Marijuana Enforcement Division. . . . Steep Hill Halent Labs tested 13 marijuana edible products for potency. Lab director Joseph Evans said only three of the 13 products tested close to the potency promised on the packaging.”

By |2014-04-28T19:52:04-07:00April 28th, 2014|Stories & Articles|Comments Off on Marijuana Edibles: You May Not Be Getting What You Think

Medical Marijuana Dispensary Dispute

Eastern Arizona Courier:  “Medical marijuana cardholders who stopped by the Holistic Wellness Center in Clifton to purchase an allotment of cannabis Thursday came across a padlocked door and a handwritten sign indicating the business was temporarily closed. The closure wasn’t due to state or federal law enforcement officials, however, but was instituted as a casualty of a battle for ownership and the right to operate the dispensary.  The fight concerns an ownership group involving David and Kathy Sanchez against their former partner, Duke Rodriguez, and his group, Ultra Health.”

Duke Rodriguez and Ultra Health were never partners with David and Kathy Sanchez or Holistic Patient Wellness Group, LLC, the sole holder of a license to operate a medical marijuana dispensary in CHAA 83, the CHAA in which Clifton, Arizona, is located.  KEYTLaw, LLC, and Richard Keyt represent Holistic Patient Wellness Group, LLC.

By |2014-05-03T09:02:17-07:00April 24th, 2014|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Medical Marijuana Dispensary Dispute

Arizona Supreme Court Rules Pot Metabolite doesn’t Prove DUI

Arizona Republic:  “Motorists who have used marijuana cannot be charged with driving under the influence on that basis alone, even if some traces of the drug are detected in their blood, the state’s top court ruled Tuesday.  Arizona Supreme Court justices disagreed with the Maricopa County Attorney Office, which argued before the court in November, that drivers whose blood tests reveal the presence of an inactive marijuana metabolite known as Carboxy-THC can be prosecuted for driving while impaired.”

Read the court’s opinion in the case of Arizona vs. Hrach Shilgevorkyan.

By |2017-02-04T07:39:00-07:00April 23rd, 2014|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Arizona Supreme Court Rules Pot Metabolite doesn’t Prove DUI

Colorado Lawmakers Seek to Tighten Marijuana Rules after Two Deaths

Washington Times:  “The Mile High City was jammed with pot revelers Sunday for the annual 4/20 festival, but the mood was far from celebratory Monday as state legislators moved to tighten rules on marijuana products in the wake of two tragic deaths.  The Colorado House passed unanimously bills to set possession limits for concentrated forms of marijuana such as hash oil, and to make cookies, candy and other foods infused with pot more easily identifiable.”

By |2014-04-22T07:12:08-07:00April 22nd, 2014|Colorado News, Stories & Articles|Comments Off on Colorado Lawmakers Seek to Tighten Marijuana Rules after Two Deaths

Maryland Decriminalizes Pot

Huff Post:  “Maryland Gov. Martin O’Malley (D) has signed a bill decriminalizing marijuana possession in the state, following the passage of the measure in Maryland’s General Assembly.  Senate Bill 364 reduces the penalty for possessing less than 10 grams of marijuana from a criminal to a civil offense. First-time offenders will face fines up to $100, while a second offense will be punishable with a fine up to $250 and subsequent offenses up to $500. Additionally, the bill requires third-time offenders or offenders under the age of 21 to be evaluated for substance abuse problems, and to attend drug education classes.

By |2014-04-14T20:07:03-07:00April 14th, 2014|Stories & Articles|Comments Off on Maryland Decriminalizes Pot

Pot Vending Machine to Debut

UPI:  “A Colorado company has introduced the first-ever marijuana vending machine, which will soon be put to use at a dispensary in Eagle-Vail, Colo.  The so-called Zazz machine was produced by Stephen Shearin’s company, American Green, and was delivered to the Herbal Elements dispensary Friday.”

By |2014-04-14T06:41:30-07:00April 14th, 2014|Stories & Articles|Comments Off on Pot Vending Machine to Debut

Eric Holder in the Hot Seat on Pot, Fired Up to Defend DOJ Enforcement

Roll Call:  “As states and cities move to liberalize marijuana laws, the administration looks at changes to federal policy and the No. 2 House Democrat reverses course on decriminalization, Attorney General Eric H. Holder Jr. found himself in a charged congressional hearing on Tuesday.  Pressed by members from both sides of the aisle to defend Justice Department practices in states that have legalized marijuana for recreational purposes, Holder insisted the Obama administration has not ‘retreated.’  Holder also said the DOJ won’t scale back marijuana punishments by rescheduling the drug, as House Democrats have been pushing President Barack Obama to do, saying he was ‘satisfied’ with what the department is doing.  ‘The notion that somehow we have retreated from our enforcement of the Controlled Substances Act with regard to marijuana is not accurate,’ Holder told the House Judiciary Committee. He reiterated a DOJ memo laying out eight areas of priority for pot prosecutions, including marketing to minors, driving under the influence and criminal cartels.”

By |2017-02-04T07:39:01-07:00April 10th, 2014|Federal Dispensary Attacks, Stories & Articles|Comments Off on Eric Holder in the Hot Seat on Pot, Fired Up to Defend DOJ Enforcement

Pro-medical Marijuana People Launch Recall Effort Against State Senator

Capital Media Services:  “Supporters of medical marijuana research have targeted a Republican state senator for recall because she is blocking a measure that could fund it.  But the measure could be more public relations than actual political power.  Kathy Inman, secretary of the newly organized Arizona Veterans Assistance Committee, said Monday that Kimberly Yee has used her position as chair of the Senate Education Committee to kill a measure that would allow some of funds collected from medical marijuana users and dispensaries to be used for university-based research on the drug.”

By |2017-10-07T09:56:02-07:00April 9th, 2014|Stories & Articles|Comments Off on Pro-medical Marijuana People Launch Recall Effort Against State Senator

Sahuarita Medical Marijuana Dispensary to See Changes

Green Valley News & Sun:  “Sahuarita’s medical marijuana dispensary is under new management . . . . The name will be changed to UltraHealth Green Valley . . . said Duke Rodriguez . . . . UltraHealth, which specializes in several aspects of the medical marijuana industry, including growing the crop, has begun taking over management and will continue to take over during the next month, Rodriguez said. The three full-time employees will become employees of UltraHealth, which has 25 employees statewide . . . . His organization, which is more active in the Phoenix area, is courting a group of five dispensaries . . . . ‘We have experience at growing and cultivation and a wider access to inventory,” Rodriguez said’.”

Sahuarita’s dispensary is owned by Broken Arrow Herbal Center, Inc.

Query:  Where and how does Ultra Health have experience growing and cultivating marijuana?  See “AZ Dept. of Health Services Confirms Ultra Health, LLC Lacks a License for a Medical Marijuana Dispensary.”

By |2019-06-14T08:28:16-07:00April 6th, 2014|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Sahuarita Medical Marijuana Dispensary to See Changes

Black Market for Pot is Thriving in Colorado

Washington Times:  “Just because marijuana is legal in Colorado doesn’t mean the black market for the drug has disappeared. Rather, the opposite, police officials said.  ‘[Legalization] has done nothing more than enhance the opportunity for the black market, said Lt. Mark Comte of the Colorado Springs police vice and narcotics unit, in The Associated Press. ‘If you can get it tax-free on the corner, you’re going to get it on the corner’.”

By |2014-04-06T12:20:13-07:00April 6th, 2014|Colorado News, Stories & Articles|Comments Off on Black Market for Pot is Thriving in Colorado

George Soros’ Crusade: Legalizing Marijuana in the U.S.

Washington Times:  “Billionaire philanthropist George Soros hopes the U.S. goes to pot, and he is using his money to drive it there.  With a cadre of like-minded, wealthy donors, Mr. Soros is dominating the pro-legalization side of the marijuana debate by funding grass-roots initiatives that begin in New York City and end up affecting local politics elsewhere.  Through a network of nonprofit groups, Mr. Soros has spent at least $80 million on the legalization effort since 1994

By |2014-04-04T06:46:00-07:00April 4th, 2014|Stories & Articles|Comments Off on George Soros’ Crusade: Legalizing Marijuana in the U.S.

Fusion Hires First TV Chief Cannabis Correspondent

Variety:  “At first blush it sounds like something out of a Cheech & Chong movie, but in fact it’s a serious effort. Fusion, the startup cabler run by ABC News and Univision, has named  journalist Ryan Nerz as its chief cannabis correspondent.”

By |2017-02-12T07:40:46-07:00April 4th, 2014|Stories & Articles|Comments Off on Fusion Hires First TV Chief Cannabis Correspondent
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