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On Wednesday, two businessmen were convicted of a single count of conspiracy to commit bank fraud (18 U.S.C. § 1349) for orchestrating a scheme to disguise cannabis-related financial transactions as transactions unrelated to cannabis.[1]  The conviction followed the close of a three-week trial in the Southern District of New York, which was one of the first federal criminal trials to be held in person since the start of the COVID-19 pandemic.  The jury deliberated for less than a day.  Sentencing is scheduled for June 25, 2021.
Continue Reading Online Cannabis Marketplace Businessmen Convicted of Conspiracy to Commit Bank Fraud

The trial of two men associated with an online cannabis marketplace began last week in the Southern District of New York.  Prosecutors seek to prove that Hamid Akhavan and Ruben Weigand, two businessmen who worked with the online platform from 2016 to 2019, conspired to commit bank fraud by disguising credit and debit card transactions for cannabis purchases as transactions for non-cannabis purchases.  While selling cannabis remains illegal under federal law, the case demonstrates how cannabis businesses face white collar enforcement risks unrelated to drug-trafficking charges.   
Continue Reading Bank Fraud Trial Highlights White Collar Enforcement Risks for Cannabis Industry

In a case of first impression, the New Jersey Appellate Division determined that employers in the state must reimburse employees for medical cannabis following a workplace accident, despite federal prohibitions…
Continue Reading New Jersey Court Commands Cannabis Reimbursement in Workers’ Compensation Dispute

The California Legislature has passed Assembly Bill 1482 – Tenant Protection Act of 2019 (“AB 1482”), providing for comprehensive statewide residential rent control and eviction protections.  Signed by…
Continue Reading Tenant Protection Act of 2019 May Have Unintended Consequences in the Cannabis Space