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THE $1M HEIST OF CANNABIS PRODUCT IN PORTLAND HIGHLIGHTS SECURITY PROBLEMS IN THE INDUSTRY

By Shuki Greer, Esq.

The security camera footage has been watched thousands of times. Breaking in through a skylight in the ceiling, dropping a ladder down, and methodologically getting away with dozens of bags of finished product. The video clearly shows that this was a professional job carried out by serious criminals. The estimated value stolen was over $1M, meaning an estimated tax revenue loss for Oregon of about $230,000. The culprits remain at large, and they may never be found.

masked criminal

This isn’t the only incident either. A quick internet search highlights several other high-profile incidents, with varying degrees of professionalism, danger, and dollars lost. While each of these incidents have differences, they all share something in common. The legal industry is known for having large amounts of cash on hand, surplus product lying around, with varying amounts of security in place. The industry is susceptible to these kind of targeted robberies, a fact which is unlikely to change in the near future.

Why is this the case? The answer starts with the fact that cannabis remains illegal at the federal level. The government classifies cannabis as a Schedule 1 drug, meaning it is considered to have no medical benefit and a high potential for abuse. Because that is the case, financial institutions have been hesitant to open accounts and do business with MRBs (Marijuana Related Businesses), because they fear financial penalties, asset forfeiture, as well as civil and criminal repercussions.

Beyond the fact that the government considers MRBs to be illegal drug trafficking operations, several related details make banks hesitant. Bankruptcy courts are (almost) completely closed to MRBs. That means that if a company goes under, the bank has no recourse to get its money back. Section 280E of the tax code means that MRBs pay exorbitantly high taxes, making them significantly less profitable, solvent, and viable as account holders. The industry also still carries a stigma that makes some banks concerned about their other clients, who may close accounts upon learning that the banks have been doing business with MRBs.

It’s not all bad news, however. This issue has been talked about for years, and as the number of states with legal cannabis industries grows, banks have become more willing to get involved. The federal government hasn’t been silent either. The well-known Cole Memo, put out by the Obama administration, essentially stated that as long as businesses were operating legally under state law, they were a low priority for enforcement, as federal resources were better spent elsewhere. Subsequently, the FinCEN (Financial Crimes Enforcement Network, a bureau of the Treasury) announced that banks doing business with MRBs should follow the Cole memo’s guidelines to determine whether their customers were operating legally under state law.

When the Trump administration took over, AG Jeff Sessions rescinded the Cole memo, stating that prosecutors already have discretion as to how to use their limited resources, and there was no need to single out MRBs for special treatment. This suggested to some that the DOJ was going to start going after MRBs even if they were operating legally under state law. Thankfully, this didn’t happen, at least not on the large scale that some feared might happen. However, doubt and uncertainly remained for financial institutions, most of whom refused to bank the money from MRBs. Earlier this year, FinCEN announced that they still expected banks doing business with MRBs to be reporting suspicious activity using the Cole memo guidelines. In a backhanded way, this was an announcement that it was ok for financial institutions to do business with MRBs, and many have begun or continued to do so.

As long as cannabis remains illegal at the federal level, there will be fear and risk that comes along with doing business with MRBs. This means that many companies choose to keep large amounts of cash on hand, created the obvious incentives that thieves look for when picking a target. If we don’t want these incidents to continue, we need to redouble our efforts to push legalization so that the financial, security, and investment opportunities catch up to the rate of business growth. Two helpful and relevant bills are currently making their way through Congress, though neither seems likely to become enacted. The MORE Act, a comprehensive overhaul of the cannabis laws recently passed the House Judiciary Committee. However, the bill is yet to be brought to a full House vote, and the Senate is even less likely to bring the bill to the floor. Then there is the SAFE Banking Act, which passed the House 321-109 earlier this year, in a landmark bipartisan victory. But that bill seems to be dead in the House, as Mitch McConnell positions himself as opposed to any movement in the field. As such, the immediate future for the industry does not seem to hold significant change, and these problems will persist. While I certainly do not want to see more of these incidents, we likely have not seen the last one.

masked bank robbers
Benjamin Caplan, MDTHE $1M HEIST OF CANNABIS PRODUCT IN PORTLAND HIGHLIGHTS SECURITY PROBLEMS IN THE INDUSTRY
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Extensive Cannabis Studies Underway Globally

Current Status and Prospects for Cannabidiol Preparations as New Therapeutic Agents

In Summary:

As of 2016, upwards of 60 clinical trials relating to the use of medical cannabis were in progress. The scope of clinical trials included conditions such as anxiety, cocaine dependence, infantile spasms, schizophrenia, solid tumor, and many more. The status of cannabis as a Schedule I drug, under the Controlled Substance Act, limits researchers’ ability to freely collect data if they require support from NIH funding. While there are opportunities for researchers to study cannabis and its derivatives with the support of private funds, this typically risks an appearance of sacrificed scientific integrity and independence. Very few private entities would condone research which might shed an unfavorable light on their products. On the other hand, current NIH-funded research requires the use of the national supply of cannabis, a crop well-known to be very limited in quality. Increasingly, more states have been legalizing the medical and recreational use of cannabis in recent years, allowing scientists with more opportunities for private funding in which to shed more light on the vast medicinal benefits of cannabis. Animal models and human trials have pointed toward clinical applications of medical cannabis including anxiety, nausea, seizures, and inflammation, although the array of competing and synergistic compounds within the plant seem to continually open new doors to relief from a large array of illnesses.

View this review (yellow link) or download:

This paper is also stored here:     http://bit.ly/32HVVpc    inside the CED Foundation Archive

To explore related information, click the keywords below:


Benjamin Caplan, MDExtensive Cannabis Studies Underway Globally
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USA Today Report: Cannabis Consumers Reduce Use of painkillers, prescription drugs, alcohol

“Among all surveyed consumers, 49% reported reducing their over-the-counter painkiller use since starting cannabis, and 52% reduced prescription drug use. Another 37% said they’ve reduced alcohol consumption since starting cannabis”


https://www.leafly.com/news/industry/usa-today-report-cannabis-consumers-reduce-use-of-pills-booze

Benjamin Caplan, MDUSA Today Report: Cannabis Consumers Reduce Use of painkillers, prescription drugs, alcohol
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Solo Sciences Press

A sneak peek at the latest news coming about solo sciences, inc!

Imagine a future of cannabis, where consumers have the control of purchase decisions, based on accurate information about the brand and products they may want, and tamper-proof, third-party verification that what we are buying is actually what the package says it is? (and then… consider that this concept applies to products beyond cannabis, from food to beauty products, toys, entertainment…)

“The world of cannabis is murky, unpredictable, and often not safe,” said Ashesh Shah, CEO and founder of solo sciences and a former CIA profiler. “As brands and governments are struggling to fight the illicit market, we created solo* to solve that problem by creating transparency into what cannabis providers are actually selling to consumers. solo* is designed to keep people out of the dark when it comes to what they’re consuming and putting into their bodies, so they feel secure and knowledgeable about the products they’re purchasing.”

https://zd.net/2JQc7hi

for more information about solo*:

Website: https://www.solosciences.com/

LinkedIn: https://www.linkedin.com/company/solo-sciences/

Facebook: https://www.facebook.com/solosciences

Twitter: https://twitter.com/solosciences

Benjamin Caplan, MDSolo Sciences Press
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Gauging Mice with CBD, part 2

A Forbes article shedding light on #CBD and its effects on the livers of mice. Dr Peter Grinspoon and Devitt-Lee wisely talk some sense around the lousy methods and insensible dosage used on mice to command sensational headlines. http://bit.ly/2XMP36W

The CED Foundation review of the topic: http://bit.ly/2jYOlFX

Benjamin Caplan, MDGauging Mice with CBD, part 2
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Surveys show medical professionals’ opinions clashing around Cannabis

Surveys on medical professionals’ opinions on medical cannabis show that while many are still skeptical and do not think it is completely safe, younger doctors and those on the East coast are more supportive. This clash could be good for solving some common concerns with cannabis. http://bit.ly/2XQVxWz

Benjamin Caplan, MDSurveys show medical professionals’ opinions clashing around Cannabis
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Video: Medical Cannabis Around the Globe & Across Centuries

Throughout the ages, from health & wellness, religious rituals, and textile applications to the entertainment and social elements, cannabis has been a vital part of multiple sectors of human culture.

For millions, the modern cannabis revival is a welcome return home to a core element that has been missing for years.

 

View this review (yellow link) or download:

This paper is also stored here:     http://bit.ly/2l4Vgxq    inside the CED Foundation Archive

To explore related information, click the keywords below:

Benjamin Caplan, MDVideo: Medical Cannabis Around the Globe & Across Centuries
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US House of Representatives votes to support state legal cannabis

Kudos to Kyle Jaeger for a helpful summary of last week’s US House’s vote on an amendment to block the Department of Justice from interfering in states’ legal cannabis programs. His work outlines which representatives stand where, with regard to #cannabis. Interesting to see, and how times change! http://bit.ly/2LgKO0P

To explore related information, click the keywords below:

Benjamin Caplan, MDUS House of Representatives votes to support state legal cannabis
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Pregnant women are using more cannabis over time

Statistics show that in the past 15 years, the number of pregnant women using marijuana, especially in their first trimester, has risen greatly. These numbers may be slightly skewed, but they show the importance of more research being done on the effect of cannabis on pregnant women. https://cnn.it/2WWQV1e

View this review (yellow link) or download:

This paper is also stored here:     http://bit.ly/2IwLxcp    inside the CED Foundation Archive

To explore related information, click the keywords below:

Benjamin Caplan, MDPregnant women are using more cannabis over time
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Guidelines for Canada’s cannabis edibles tight, but also vague

https://vancouversun.com/news/local-news/guidelines-for-canadas-cannabis-edibles-tight-but-also-vague

Months after the decision to legalize cannabis, Canadian lawmakers work to regulate the packaging and advertising of cannabis products. The new guidelines forbid the mixing of alcohol and THC and also ensure that products are not “appealing to a young person.”

Benjamin Caplan, MDGuidelines for Canada’s cannabis edibles tight, but also vague
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