We had a lot of inquiries about the meaning of the Criminal Subpoena to Weedmaps from the U.S. Attorney in the Eastern District of California so we wanted to provide our view of the situation.
What Happened?
The U.S. Attorney for the Eastern District of California issued a subpoena to Ghost Management Group, LLC the parent company of Weedmaps seeking documents back to 2008 relating to 100 different companies.
Why was the subpoena issued?
Weedmaps openly violated federal law by taking money from illegal, black market cannabis companies and advertised their businesses across the Weedmaps platform.
Lessons Learned
The US government continues to scrutinize the marijuana industry. It’s a reminder that the U.S. Department of Justice will not allow the industry to break state law and promote illegal cannabis businesses.
The federal government has not indicted a single state-compliant cannabis business in the past four years.
Abide strictly by state law and don't openly violate state law rules.
The federal government will intervene so don't attract undue attention to your business.