Sweet Leaf, the Colorado-based cannabis retailer chain who had its Denver licenses revoked earlier this month due to an alleged “looping scheme,” has won a stay of action for the destruction of all the company’s Denver-based cannabis products, according to a Marijuana Business Daily report. The stay was granted yesterday in Denver District Court.
“Until the legal process is complete, there will be no action by Denver to verify the marijuana is destroyed.” — Eric Escudero, communications director for the Denver Department of Excise and Licenses, in an email to Marijuana Business Daily
Sweet Leaf’s alleged looping scheme was discovered late last year; 12 individuals were arrested in December for their involvement. Law enforcement representatives claimed the retailer was breaking rules related to the daily maximum cannabis purchase amounts and products were being purposefully diverted to the illicit marketplace. All of the company’s 26 Denver licenses were revoked earlier this month.
Sweet Leaf’s CEO and co-owner Matthew Aiken maintained the company’s innocence in an email last week, according to the report.
“Sweet Leaf continues to maintain our innocence, and we will continue to fight these Stalinist tactics used by the City of Denver. We will rigorously exhaust every option of appeal. Furthermore, we will continue to fight for the rights of our industry to be treated like businesspeople.” — Matthew Aiken, CEO and co-owner of Sweet Leaf, via MJBizDaily
Sweet Leaf still has several Colorado stores outside the city of Denver — and one in Portland, Oregon — that have not been shut down.
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