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U.S. - Pot Owners Plead Guilty in Unique Charges vs. Legal Business

S.J.B.

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Pot Owners Plead Guilty in Unique Charges vs. Legal Business
The New York Times
January 25th, 2019

DENVER -- The owners of a Denver marijuana business pleaded guilty Friday to drug and racketeering charges and will spend a year in prison in what city officials called the first local prosecution of a legal pot enterprise in the U.S.

A yearlong investigation of Sweet Leaf's sales practices centered on a practice known as "looping," where a customer purchases the maximum amount of marijuana that Colorado law permits and repeatedly returns to the same retailer to purchase more on the same day. Prosecutors believe people using the strategy at Sweet Leaf locations purchased more than 2 tons of marijuana intended for sale on the black market.

The case is unique in that Denver authorities charged a pot business in one of 10 states plus Washington, D.C., that broadly allow marijuana use by adults and a commercial market to supply cannabis products. The majority of such businesses "are reputable and responsible and strive to obey our marijuana laws," Denver District Attorney Beth McCann said in a statement.

"Sweet Leaf is an exception," she said.

Under a plea agreement, Matthew Aiken, Christian Johnson and Anthony Sauro will serve one year in prison followed by a year of parole tied to the drug charge and a year of probation for the racketeering charge.

Read the full story here.
 
I don't think this will be the only pop on this. Black markets create profit incentive crime. This has been common knowledge in the industry for awhile. Like the article says most people tow the line, but greed gets to some people. This is not surprise to me. People have been whispering. I agree its not wide spread.
 
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