Delaware Officials Warn of Scam Targeting Potential Cannabis Social Equity Applicants

Delaware’s Office of the Marijuana Commissioner (OMC) is warning of scams related to social equity cannabis licenses. OMC said out-of-state entities are contacting potential social equity applicants and trying to deceive them into paying to help secure an adult-use cannabis license. 

Delaware lawmakers legalized adult cannabis use last year but have not yet issued any licenses. 

“Here’s how to protect yourself:
– Do not pay upfront fees for help obtaining a social equity license.
– Beware of unsolicited calls, postcards or emails promising to guarantee a license.
– Trust official sources for information on social equity licensing. Refer to the OMC website or contact them directly for guidance.
– Consult with an attorney before signing any agreements or contracts.” — OMC in a press release 

The agency is asking individuals who are approached by scammers to report the incident to OMC. It indicated that the scams would be investigated by the state Department of Justice and Division of Alcohol and Tobacco Enforcement.  

Other states have warned of similar scams targeting would-be social equity applicants, including Illinois, Maryland, Massachusetts, Missouri, and Vermont. 

Delaware lawmakers last year proposed a $4+ million budget for the state’s adult-use cannabis industry roll-out, and last month passed a bill to establish protections for banks and other financial institutions that work with state-licensed cannabis companies.