Business
9 Americans Arrested for Smuggling Weed Into the U.K.
Nine American nationals were arrested for attempting to smuggle cannabis from California to London’s Heathrow Airport last week, according to a statement from law enforcement and customs officials.
The United Kingdom’s National Crime Agency revealed on Tuesday that a total of nine Americans have been arrested in the span of one week for attempting to smuggle cannabis into the island nation. The law enforcement agency is now investigating to determine if there is a link between the failed attempts to illegally import marijuana from California to the U.K.
The National Crime Agency (NCA) noted that nine individuals, all United States nationals, have been arrested since last week while trying to carry cannabis from Los Angeles International Airport (LAX) to London’s Heathrow Airport. All of those arrested have been charged with carrying between 30 and 50 kilograms (about 56 to 110 pounds) of cannabis in their checked baggage.
“We are working to understand how these seizures are connected, however to get this many off the same route in such a short period of time is clearly very unusual,” NCA senior investigation officer Darren Barr said in a statement from the agency.
9 Pot Seizures In One Week
The first seizure was made on Tuesday, January 10, when a passenger arriving at Heathrow from LAX was arrested after the Border Force found about 30 kilos of cannabis in the traveler’s luggage. Three days later, another seizure was made on Friday, followed by an additional two interdictions on Saturday. Cannabis from LAX was seized at Heathrow four more times on Sunday, while the most recent smuggling attempt to be thwarted occurred on Monday, January 16.
In all, about 340 kilograms (nearly 750 pounds) of marijuana were seized in the nine seizures at Heathrow over the week. All nine American nationals arrested have been charged with attempting to import class B drugs into the country and have been remanded into custody pending appearances in court.
Officials estimated the street value of the “herbal cannabis” at more than £5.5 million, or about $6.8 million, although law enforcement agencies have been known to make inflated estimates of the value of seized drugs.
The NCA official warned that the suspects charged in the smuggling cases face steep penalties if they are found guilty. Convictions for importing class B drugs into the U.K. can carry unlimited fines and prison sentences of up to 14 years.
“Drugs couriers face stiff sentences so I’d urge anyone considering getting involved in such ventures to think very carefully about the consequences,” Barr noted. “Alongside partners like Border Force we are determined to do all we can to disrupt the organized crime groups involved in international drug trafficking.”
Steve Dann, the chief operating officer of the Border Force, praised the work of customs officials for their role in preventing the seized cannabis from entering the country.
“Drugs fuel violence and chaos on the streets and inflict suffering in communities across the U.K. Thanks to the work by Border Force, these dangerous drugs were stopped from reaching Britain’s streets and causing significant harm to our neighborhoods,” said Dann. “This seizure demonstrates the successful joint partnership between the Border Force and NCA, as well as our common commitment to keep our communities safe and smash the illegal drugs trade.”
U.K. Cannabis Policy Under Debate
The marijuana seizures at Heathrow Airport come as government officials engage in a renewed debate over cannabis policy in the U.K. In July of last year, then-Home Secretary Priti Patel announced proposed new sanctions on users of cannabis and other drugs that include the confiscation of driver’s licenses and passports under a new three-strikes policy for illicit drug use.
“Drugs are a scourge across society. They devastate lives and tear communities apart,” Patel said in a statement from the government. “Drug misuse puts lives at risk, fuels criminality and serious and violent crime and also results in the grotesque exploitation of young, vulnerable people.”
Under the proposal, which was detailed in a white paper drafted by the Home Office, those caught with illegal recreational drugs would face fines and mandatory drug education. They could also be banned from nightclubs and other entertainment venues.
Three months later, U.K. Home Secretary Suella Braverman revealed that she was considering tightening the classification of cannabis under the nation’s drug laws over concerns that marijuana is a gateway drug and can lead to serious health problems. Braverman’s review followed calls from law enforcement leaders to reclassify cannabis as a Class A drug, the same category assigned to substances including heroin, cocaine, and ecstasy.
But then last month, a group of police chiefs in the United Kingdom announced a plan to effectively decriminalize the possession of drugs including cannabis and cocaine. If adopted by the government, the use and possession of small amounts of recreational drugs would be treated as a public health issue for first-time offenders, rather than a criminal offense subject to prosecution and jail time or other punishment.
The proposals, which were developed by the National Police Chiefs’ Council (NPCC) and the College of Policing, would effectively decriminalize the possession of Class A drugs including cocaine and Class B substances such as marijuana. Under the plan, individuals caught with illegal drugs would be offered an opportunity to attend drug education or treatment programs, rather than being subjected to prosecution.
Source: https://hightimes.com/news/9-americans-arrested-for-smuggling-weed-into-the-u-k/
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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