Business
Ghost Medical Dispensary Owners -How Oklahoma Attorneys Are Getting Caught Trying to Game the Marijuana Industry Rules
What is a ghost dispensary owner?
From January to today, three Oklahoma attorneys have been caught and are facing charges for allegedly getting involved in illegal cannabis licensing schemes. The scheme, generally termed Ghost working, involves the creation of registration of companies to obtain licenses.
The most recent attorney to get arrested, Mathew Stacy, is accused of registering about 300 limited liability businesses to obtain medical cannabis and manufacturing licensees easier. He has allegedly set up many of these illegal operations under Oklahoma’s medical cannabis program.
Earlier in June, Logan Jones and Eric Brown were similarly charged with falsifying business records, cultivation of illegal substances, and different counts of conspiracies. The Oklahoma Bureau of Narcotics (OBN) investigators revealed that they had interviewed four other attorneys working in the James-Brown law firm, and all four confessed that their names had been used to register for Oklahoma’s medical cannabis production licenses.
Mathew Stacy’s Case
The Oklahoma Bureau of Narcotics Public Information Officer, Woodward, gave a statement hours after the multi-grand jury indictment of Stacy. He revealed that in addition to being appointed to Republican Governor Kevin Stitt’s COVID-19 response team, Stacy is a lieutenant colonel in the Oklahoma National Guard. Stacy also gave about $3,000 to Governor Stitt’s reelection campaign.
According to Woodward, the OBM hasn’t gotten far with the ongoing inquiries and the rampant registration of countless businesses for medical cannabis licenses. “The Oklahoma Medical Marijuana Authority reports that there are 7,400 licensed growers in the state, but marijuana producers that may have received permits despite the in-state owner having no actual involvement with the business include well over 1,000, if not close to 2,000.
Nearly 25% of the farms in Oklahoma may be engaged in the same deceptive business operation,” according to Woodward.
In an interview with KOCO, a reputable news agency in Oklahoma, Woodward revealed on behalf of the agency that most lawyers and consultants involved in this ghost working charges often recruit non-residents to come and apply for these licenses— promising them 75% ownership. In comparison, the illegal businesses will come with their 25% work crew. These criminals produce the plants, move them to the point of sale, and also move the money. Woodward added that 75% of owners have no idea what’s going on on their farms.
According to the OBN, Oklahomans were enlisted to take on the role of “ghost owners” of the companies, signing ownership documents but being uninvolved in day-to-day management. The farms are often run by out-of-state persons. Investigators discovered “thousands of marijuana plants actively growing with dozens to hundreds of pounds of fully processed and packaged marijuana present on the raided premises.”
The agency revealed that Stacy is yet to admit his faults; instead, he has claimed on various occasions that the businesses he applied to register haven’t started operating. Woodward asserted that the illegal businesses wouldn’t have been able to secure a license if a legal team hadn’t come forward and offered bogus documents. The bogus owners might potentially be charged with felonies for their role in the scheme, according to Woodward.
The James-Brown Case
Both lawyers allegedly used their assistants’ names to apply for medical cannabis production permits. This name served as a cover for their non-resident clients to access the state’s cannabis program. According to cannabis regulations, only persons living within the state can access the state’s cannabis program.
The attorney in charge of this case, John O’Connor, revealed in June that the state is focused on getting rid of illegal operations hiding under the guise of authorized permits. He revealed that in a few months, the state would be rid of persons misusing its legal medical cannabis system.
In his defense, Brown’s lawyer asserted that the two were no longer partners while denying any wrongdoing. According to Ken Adair, Brown’s attorney, his actions and knowledge of what transpired are in no way similar to the state of mind or criminal intent needed to break the law. Meanwhile, a request asking Jones for comment received no response.
The agency showed that at least 400 cannabis farm operations in Oklahoma are listed as properties of several employees at the James-Brown firm, whereas the actual owners are out-of-state persons. Four staff members of the Jones-Brown legal company reportedly revealed during interviews with investigators from the Oklahoma Bureau of Narcotics that they had been utilized to submit applications for state-issued permits to produce medical marijuana.
According to affidavits submitted in Garvin County court, one legal assistant told investigators that she was paid $3,000 for each license she signed, with at least $1,000 going back to the law office, and that because she “met with clients so regularly.
More Investigations to Fish Out Illegal Cannabis Operations
The Oklahoma Bureau of Narcotics is looking into additional ‘ghost owner’ activities that might exist. Bureau Director Anderson also emphasized that they took 14 months on this one case and stated there are some they have been working on much longer.
A statewide raid this year that resulted in many arrests, the confiscation of 100,000 plants and 2,000 pounds of processed marijuana, and other charges, according to the bureau, was made possible by the OBN’s ability to devote more investigators to illegal pot operations in previous years. The Oklahoma Medical Marijuana Authority (OMMA), the state body in charge of licensing, is frequently unable to spot a phony license application, according to Anderson. Therefore the Oklahoma Bureau of Narcotics’ work is essential to detecting non-resident owners.
It is noteworthy that OMMA will be made a stand-alone agency by next month. This move has been finalized by the state’s lawmakers. Regarding licenses that falsely utilize an Oklahoman’s name, Anderson noted that although OMMA has drawn some criticism for it, it is not OMMA’s fault because everything (appears) in order when you inspect them.
Last Words
The government’s decision to make OMMA independent will help reduce the complexity of regulations and compliance. By doing this, the agency, in conjunction with the security agency and OBN, will be able to effectively regulate the businesses that the electorate has authorized as legitimate while minimizing the risks the black market presents to the welfare of Oklahomans.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
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.”
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