Business
The World is Fighting to Get Their Hands on Colombia’s Creepy Cannabis Strain – Even Venezuela Is Caught in the Middle!
The high THC Colombian cannabis strain known as Creepy is in high demand worldwide!
The confiscation of cannabis shipments on Venezuela’s coastline and border with Colombia highlights the nation’s significance as a crucial conduit for a specific strain of Colombian cannabis flooding the markets of Latin America.
Colombian National Police confiscated 2.5 tons of cannabis at the beginning of March, hidden in a truck loaded with plastic furniture and kitchen utensils. The seizure occurred in the municipality of Maicao, located in the border department of La Guajira, on the boundary between Colombia and Venezuela. According to the Anti-Narcotics Directorate (DIRAN) of the Colombian National Police, the seized consignment was planned for Venezuela and various nations in Central America.
In the following days, Venezuelan officials declared the discovery of 457 kilograms of cannabis left unattended on the Caribbean Sea’s coast in Falcón State. These confiscations came after earlier seizures that occurred towards the end of 2022 in Venezuela, with one of the seizures on December 15th weighing over 3.4 tons. Officials claimed that this was the largest marijuana seizure in the country over the past ten years.
Between September and December 2022, various operations conducted along Venezuela’s northern coast resulted in confiscating roughly 7.6 tons of marijuana, with this most recent seizure included. InSight Crime’s media monitoring and a report by Venezuela’s National Anti-drugs Superintendence (SUNAD) indicate that around 10 tons of marijuana were seized in Venezuela throughout 2022.
Independent reports and official sources suggest that since there is no significant cultivation of cannabis on a large scale in Venezuela, most of the drugs seized and flowing through the country originate from the northern mountains of Colombia’s western Cauca department.
Deep Crime Analysis
The regional market’s demand for Colombian-produced marijuana, particularly the high-THC strain known as “creepy,” is fueling the significant seizures in Venezuela. The nation is a convenient transit point between Colombia and numerous other regional markets.
The fact that Venezuela has a history of being a drug corridor plays to the advantage of marijuana traffickers. It is a known route for transnational cocaine trafficking, and the involvement of top political and military figures in drug trafficking protects those looking to export drugs overseas.
Moreover, Venezuela’s strategic position on the continent provides maritime links to numerous Caribbean nations, land and river corridors to Brazil and convenient routes to Central American countries.
The high-THC strain of marijuana known as “creepy” from Cauca is transported on Colombian roads to major cities such as Cali, Medellín, and Bogotá. It is temporarily stored before being distributed to various Colombian border departments, primarily Norte de Santander, Vichada, and La Guajira.
Criminal networks looking to purchase cannabis in Cauca must negotiate with the Western Coordinating Command (CCO), one of the unorthodox factions of Colombia’s formerly active Revolutionary Armed Forces (FARC), also known as the ex-FARC mafia. This group dominates cannabis cultivation in the region.
After entering Venezuela, the cannabis is transported to the states of Sucre, Falcón, or Nueva Esparta, where it is loaded onto boats heading for Caribbean markets. In addition to being a gateway to Central and North American markets, Caribbean nations like the Bahamas and Trinidad & Tobago have also reported detaining Colombian nationals with significant quantities of cannabis from Colombia.
InSight Crime spoke with an investigator, a local military officer, and a fisherman who works near informal disembarkation points in Falcón State, all of whom requested anonymity for security reasons. According to them, the Camacaro Cartel authorizes drug shipments and controls boats in Falcón. The Camacaro Cartel, which has strong political ties, took over from the Paraguaná Cartel following the arrest of its leader, Chiche Smith. Meanwhile, in southern regions, Brazil’s three primary criminal organizations have also obtained Colombian marijuana.
The two primary Brazilian prison gangs, the First Capital Command (Primeiro Comando da Capital – PCC) and the Red Command (Comando Vermelho – CV), transport cannabis through the Río Negro basin on the Colombian-Venezuelan border and then move it to the northern state of Roraima.
The Orinoco River is utilized by the Family of the North (Familia do Norte – FDN), a lesser-known gang that operates in the Brazilian state of Amazonas. The gang transports cannabis from Colombia’s Vichada department through the Amazonas department in Venezuela and into Brazil.
The Acacio Medina Front, a faction of the ex-FARC mafia, oversees the cross-border corridor across the Venezuelan state of Amazonas, which shares a border with Brazil. This group controls the movement along the main corridors in the region. It is known to be one of the main connections and distributors for Brazilian mafias operating in the jungle area.
In addition, small-scale drug trafficking networks transport marijuana in limited quantities using human couriers or private vehicles with hidden compartments that cross through illegal border crossings, commonly known as “trochas.” The marijuana is then stored in warehouses in Venezuelan territory before being transported by boats to the Caribbean coast of the country.
Although criminal organizations incur significant transportation costs to transport drugs across Colombia and deliver them to Venezuela, the expenses are far outweighed by the enormous profits generated by this illegal trade. While a kilogram of “creepy” marijuana is valued at $42 in the Cauca mountains, its worth can skyrocket to $2,800 in Brazil.
Conclusion
For organized crime groups operating in the area, the illegal marijuana traffic from Colombia to Venezuela and beyond has grown to be a significant source of income. The attraction of large profits and Venezuela’s strategic position continue to make it a hub for drug trafficking despite efforts by law enforcement agencies to crack down on the activity.
It has been challenging for law enforcement to keep up with the drug flow due to unauthorized border crossings, hidden compartments in private automobiles, and small-scale shipments of marijuana in combination with large-scale loads in boats and trucks. Furthermore, the involvement of senior military and governmental figures in the drug trade has given the industry a measure of impunity to expand.
A multifaceted strategy, including governments, communities, individuals, and law enforcement organizations, is necessary to combat drug trafficking in the area. Only by banding together can we possibly have any chance of eliminating the adverse effects of drug trafficking and ensuring a safer and more prosperous future for all.
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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