{"id":2485,"date":"2020-05-04T09:51:25","date_gmt":"2020-05-03T23:51:25","guid":{"rendered":"https:\/\/www.dalgarnoinstitute.org.au\/wp_site\/sweeping-weedmaps-subpoena-underscores-us-government-s-continued-scrutiny-of-marijuana-industry\/"},"modified":"2020-05-04T09:51:25","modified_gmt":"2020-05-03T23:51:25","slug":"sweeping-weedmaps-subpoena-underscores-us-government-s-continued-scrutiny-of-marijuana-industry","status":"publish","type":"post","link":"https:\/\/www.dalgarnoinstitute.org.au\/wp_site\/sweeping-weedmaps-subpoena-underscores-us-government-s-continued-scrutiny-of-marijuana-industry\/","title":{"rendered":"Sweeping Weedmaps subpoena underscores US government\u2019s continued scrutiny of marijuana industry"},"content":{"rendered":"

Published April 27, 2020 | By John Schroyer<\/a> <\/p>\n

When the U.S. marijuana industry learned of a federal grand jury subpoena served<\/a> to Weedmaps owner Ghost Management Group, the news was an eye-opener for many in the business.<\/p>\n

The story, first reported by MarketWatch<\/a> in early March, noted that a few high-profile cannabis companies also were identified in the Weedmaps subpoena.<\/p>\n

But the original report about the subpoena didn\u2019t disclose the identities of several other high-profile legal California companies named in the document, such as Connected Cannabis, Puffy Delivery and Urbn Leaf. Marijuana Business Daily<\/em> obtained a copy of the subpoena<\/a>.<\/p>\n

The subpoena\u2019s wide-ranging demand for information serves as a reminder that the U.S. Department of Justice will not allow the industry to operate unpoliced \u2013 even after years of largely unfettered growth at a time when MJ remains illegal at the federal level.<\/p>\n

The industry will want to watch this case carefully because, like the forced closure of Sweet Leaf<\/a> by Denver officials in 2018, the Weedmaps development might prove to be a milestone, whatever the outcome.<\/p>\n

In all, nearly 100 cannabis businesses and individuals are identified in the Weedmaps subpoena, including company employees, officers, various investors and others in the industry.<\/p>\n

\u201cThe bottom line is the feds are showing they\u2019re not done investigating cannabis, not done prosecuting cannabis,\u201d California attorney Matt Kumin said after reading the subpoena.<\/p>\n

Among the revelations: The investigation is partially focused on Weedmaps\u2019 relationships with both licensed and apparently illicit California cannabis companies.<\/p>\n

Weedmaps, headquartered in Irvine, California, is a popular website among consumers looking to find marijuana retailers across the globe. It also facilitates cannabis deliveries.<\/p>\n

The company came under fire<\/a> from California officials in early 2018 for advertising illegal marijuana retailers, a practice Weedmaps changed as of January<\/a>.<\/p>\n

Asked for comment on the subpoena, a company spokesperson wrote in an email to MJBizDaily<\/em> that, \u201cfrom time to time, Weedmaps receives requests for information from government agencies. We cooperate with these requests as we do with all lawful inquiries.\u201d<\/p>\n

What\u2019s going on?<\/strong><\/p>\n

The only consensus among four different industry attorneys who viewed the subpoena is that it\u2019s so broad that it\u2019s impossible to tell what investigators are after.<\/p>\n

\u201cThis could be a million things,\u201d California cannabis attorney Jessica McElfresh said.<\/p>\n

 <\/strong>\u201cJust because you get a subpoena, it doesn\u2019t mean you\u2019re the target of the investigation. It\u2019s impossible to know if those targets are within Weedmaps or if they are the other entities.\u201d<\/p>\n

The subpoena was sent to Ghost Management Group last September, and the company was given five weeks to turn over documents dating to Weedmaps\u2019 founding in 2008.<\/p>\n

The subpoena requests a wide range of company documents, including:<\/p>\n