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Ghost Medical Dispensary Owners -How Oklahoma Attorneys Are Getting Caught Trying to Game the Marijuana Industry Rules

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What is a ghost dispensary owner?

ghost dispensary owners

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.

Source: https://cannabis.net/blog/news/ghost-medical-dispensary-owners-how-oklahoma-attorneys-are-getting-caught-trying-to-game-the-ma

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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