As more states legalize marijuana for medical or recreational use, budding entrepreneurs believe they will get rich from marijuana businesses that comply with the laws of a particular state. However, marijuana businesses that comply with state laws are still breaking federal law and, therefore, are criminal enterprises. This issue is addressed in the special report – Is a "legal marijuana business" really legal? – designed to help potential investors, vendors, and professionals, such as lawyers and bankers, understand the risks involved in participating in the so-called “legal marijuana business.”
The report details how federal law carefully regulates controlled substances, and that only certain persons registered with the DEA can manufacture, distribute, and dispense controlled substances. It outlines the tremendous risk businesses and business owners take on when dealing with legal marijuana businesses, including exposure to criminal prosecution, loss of assets, civil penalties, loss of licensure, and fiduciary duty litigation. This risk is assumed in an environment with limited, if any, protection from legal counsel or insurance. Given the current legislative landscape, the report warns that the decision to enter the legal marijuana market should be made cautiously and with the advice of legal counsel experienced in criminal, civil, and forfeiture law.
Click here to view a full version of the special report.