Three Oklahoma attorneys are accused of enlisting state residents to pose as “ghost owners” of medical marijuana companies from out-of-state. The follow, in response to state drug investigators, has galvanized black-market drug manufacturing in Oklahoma.
The Oklahoma Bureau of Narcotics has accused Eric Brown and Logan Jones of the Oklahoma City-based Jones Brown agency, and Matt Stacy of Stacy Legal Group in Yukon of orchestrating so-called “ghost owners” license offers.
“We believe this ‘ghost’ ownership fraudulent structure and documentation is the number one reason Oklahoma now leads the nation in black market marijuana,” stated Mark Woodward of OBN.
Oklahoma marijuana companies are required to be 75% owned by in-state residents to be licensed. The OBN is investigating “well over a thousand, if not close to two thousand” marijuana growers that will have obtained licenses regardless of the in-state proprietor having no precise function with the corporate.
There are 7,400 licensed growers within the state, in response to the Oklahoma Medical Marijuana Authority.
“Almost 25% of the farms that are operating in Oklahoma are potentially operating under the same fraudulent business scheme,” Woodward stated.
A Multicounty Grand Jury indicted Stacy on 12 felony counts together with aggravated manufacturing of a managed substance and submitting false information with OBN.
Stacy’s lawyer, Joe White, didn’t return News 9’s request for remark Thursday. White advised the Oklahoman that Stacy denies wrongdoing and has been in common contact with the OBN.
The state Attorney General’s workplace charged Brown and Jones with 11 felony counts every together with conspiracy to domesticate marijuana and falsifying paperwork with OBN. Attorneys for each deny any prison wrongdoing.
Charges towards all three suspects have been filed in Garvin County District courtroom.
The attorneys are accused of hiring Oklahoma residents to pose as homeowners of out-of-state marijuana firms transferring to the state.
The residents, in response to an affidavit ready by an OBN agent, “only appear on paper and have no actual ownership interest, control, or direct benefit from the grow operation outside of an initial lump sum or monthly payment to stay on the license and registration as an owner.”
Jones advised OBN brokers the resident “is not going to participate in the decision making, establishment of the business, cultivation, dispensing, or processing,” in response to the affidavit.
The three attorneys allegedly enlisted a handful of Oklahoma residents, amongst whom have been workers of the legislation corporations or different acquaintances, to pose as homeowners on a whole bunch of marijuana-growing license purposes.
The corporations paid every resident as a lot as $5,000 per license.
One former Jones Brown worker was listed as an proprietor of greater than 250 rising companies earlier than she eliminated herself from the licenses. Prosecutors say the worker will not be cooperating with their investigation.
Kenneth Adair, Brown’s lawyer within the prison case, stated Brown “is looking forward to his day in court” and claimed the follow was authorized.
The OBN doesn’t “like the fact that people can contract in that way. (The in-state owners) don’t have zero stake in the company. That’s an absolute falsehood.”
Stanley Monroe, lawyer for Jones, stated “Mr. Jones was assured by the authorities that the manner he interpreted the residency requirements was appropriate.”
Woodward stated OBN is “scratching at the surface” of the fullest extent of using “ghost owners,” which he stated spans past the legislation corporations which were investigated up to now.
An OMMA spokesperson stated the company is working with the OBN and different businesses “to identify bad actors and stop illegal activity like ghost ownership.”
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