Attorneys with a law firm that has offices in Tulsa have been charged after a year-plus long investigation into a medical marijuana business license fraud conspiracy.
A multicounty grand jury indicted two Oklahoma attorneys nearly a year after a former secretary of the Jones Brown law firm alleged in a lawsuit that her former employers effectively made her a “ghost owner.”
The charges in Garvin County District Court announced Thursday by Oklahoma Attorney General John O’Connor align with allegations that Jones Brown law firm offered an illegal service to clients. The service: Oklahoma residents “stand-in as a lawful Oklahoma resident to meet the residency requirement for any applicant who cannot meet the 75% residency requirement” written into State Question 788, through which voters legalized medical marijuana in Oklahoma.
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About 400 marijuana grows in Oklahoma listed employees of Jones Brown law firm as 75% owners, the investigation found.
The documents — described as a “consultancy agreement,” “resident agreement” or “third-party resident agreement” — state the client would pay $3,000 per license per year for the law firm to provide a consultant to serve as an Oklahoma resident.
Attorney Logan Jones responded when the “ghost owner” investigation began: “Our participation in the Oklahoma medical cannabis industry embodies our full commitment to transparent business licensing and compliant business operations for all licensed entities to ensure that this now-billion-dollar industry operates in a safe and legal manner,” Jones said via email July 27, 2021.
Jones and law firm partner Eric Brown are each charged with one count of conspiracy to cultivate a controlled dangerous substance, six counts of offering false or forged instruments for recordation, three counts of cultivation of a controlled dangerous substance and one count of pattern of criminal offenses.
During the investigation initiated by the Oklahoma Bureau of Narcotics and Dangerous Drugs, agents searched Dao K 88 LLC in Garvin County, Evergreen Cannabis LLC in Major County and Tianz LLC in Mayes County; 20,218 marijuana plants were seized during the three search warrants.
OBN Director Donnie Anderson said Thursday the conspiracy investigation started about 14 months ago.
“It’s really easy to set up and abide by our statue, but we still have people who thumb their nose at it,” he said of those who set up shop in Oklahoma’s cannabis industry to “exploit” those laws.
This story is developing. Check tulsaworld.com for updates.
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10 things that are still illegal under Oklahoma’s medical marijuana laws
Can’t get a prescription for marijuana
Marijuana is listed as a schedule 1 controlled substance in federal law, so it cannot be prescribed, only “recommended.”
A Ninth Circuit Court ruling ensures protection for doctors who issue recommendations to patients who may benefit from cannabis-based treatments, but federal law precludes doctors from “aiding and abetting” patients obtaining marijuana. This means doctors and patients cannot discuss dosages, strains or specific cannabis products for treating a specific ailment. Doctors instead fill out a form indicating they have discussed the risks of marijuana use with the patient and feel the benefits are worth the treatment.
Some patients who see physicians for pain and are treated with opioids also may not be able to do so and use medical marijuana as a licensed patient.
Can’t use marijuana in the workplace or be impaired on the job
State Question 788 says only that an employer may not discriminate against an employee simply because of their status as a medical marijuana patient. This means that simply having a license cannot be grounds for termination or discipline. That employer can still, however, write and enforce rules that restrict the use of marijuana by employees just like any other controlled substance. No patients would be protected if they come to work high, use marijuana in the workplace or attempt to do their job while impaired.
Can’t transport marijuana across state lines
Patients who obtain medical marijuana cards in other states may purchase from dispensaries there, but the products may not be brought back to Oklahoma. Nor could a patient travel to a state with a recreational marijuana law and bring any legally obtained products back to Oklahoma. Those patients who plan to cultivate marijuana at their own homes would also not be permitted to obtain seeds from another state.
Can’t get a doctor’s recommendation inside a dispensary
A change to the law made it illegal to post a physician inside a medical marijuana dispensary, as this one did, for customers to sign up as patients inside the retail business operation.
Can’t try the product while shopping
The use of any cannabis product is prohibited inside a licensed medical marijuana business, so patients should not expect samples like what some CBD shops have been able to offer.
Can’t smoke marijuana where tobacco also prohibited
The law makes cannabis like tobacco when it comes to public consumption by falling under the Smoking in Public Places and Indoor Workplaces Act.
Can’t give marijuana away
Nothing in the law allows for patients to transfer ownership of marijuana. Patients cannot donate or sell marijuana, even to other patients. Licensed patients may cultivate marijuana on their own residential property or, with written permission, on rented property. They cannot grow outdoors unless the plants are surrounded by a locked 6-foot fence. If the yield of the plants at harvest surpasses the legal amount that may be in a patient’s possession, the marijuana must be either processed or destroyed. Patients may process their own marijuana for concentrates or edibles but would not be permitted to perform extractions using butane.
Can’t drive while impaired on marijuana
Although it is legal for patients to have a certain amount of marijuana on their person, if that patient is behind the wheel, a law enforcement officer will evaluate whether the person is at all impaired. Driving while under the influence remains illegal even for medical marijuana patients.
Can’t possess an excessive amount of marijuana
A patient remains within the legal guidelines if they possess no more than 3 ounces of marijuana on their person and 8 ounces at their residence, 1 ounce of concentrated marijuana, and 72 ounces of edible marijuana. If caught exceeding those limitations, a patient would lose their license and could face criminal charges including intent to distribute or trafficking.
Can’t smoke where you’re told not to
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