Marijuana Business Daily reports..
Major flaws in California’s marijuana regulatory system have allowed criminals to gain control of legal distribution permits and divert “untold millions of pounds” of cannabis to the illicit market – all while state officials “turn a blind eye,” a new lawsuit charges.
The suit – filed last week in state court by a California retail chain against the state’s top marijuana regulator – alleges that criminals have been legally buying an unknown number of cannabis distribution licenses by using “front men” to disguise their true identities and intentions.
Using the permits, the rogue distributors are buying huge amounts of legally grown marijuana at wholesale prices and selling it out of state or inside California through unlicensed channels, according to the lawsuit, which shines a light on a practice that industry executives complain has been going on for more than a year.
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