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Arkansas Authorities Arrest 8 Former Greenlight Dispensary Cannabis Workers

The Arkansas Alcoholic Beverage Control Enforcement Division announced the arrests in connection to the possible diversion of medical cannabis.

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Eight individuals who were previously employed at cannabis multistate operator Greenlight Dispensary’s retail location in Helena, Ark., were arrested in connection to a state investigation into the possible diversion of medical cannabis.

The Arkansas Alcoholic Beverage Control Enforcement Division (ABC Enforcement) announced Oct. 7 that the arrests came after the division performed a “lengthy” investigation, according to the Arkansas Department of Finance and Administration (DFA). The state’s DFA oversees the ABC and the Arkansas Medical Marijuana Commission.

After the investigation, ABC Enforcement officials determined that “employees of the dispensary used patient allotments for persons who were elderly, deceased, out of area or incarcerated to create fraudulent transactions and illegally obtain medical marijuana,” according to the DFA.

Phillips County Sheriff Neal Byrd’s office assisted in the investigation in the eastern part of the state.

Specifically, the Greenlight Dispensary in Helena is located within 3 miles of the Mississippi border. The company operates three medical cannabis retail facilities in Arkansas, with the other two locations in Little Rock and West Memphis.

"This matter came to our attention in January of this year, and we immediately terminated the employees involved and began working with the Arkansas Alcoholic Beverage Control Enforcement Division, the Arkansas Marijuana Medical Commission and local law enforcement on this investigation," Greenlight CEO John Mueller told Cannabis Business Times. "Greenlight’s primary focus is protecting patients and their access to legal cannabis as well as supporting a fully regulated market."

The Arkansas enforcement officials concluded from the investigation that the former Greenlight Dispensary employees allowed individuals who did not have medical cannabis patient cards to access the retail facility and purchase medical cannabis products using other people’s patient allotments, according to the DFA.

“ABC enforcement is committed to compliance in our medical marijuana program through licensee education and data-driven enforcement policy,” ABC Enforcement Director David Potter said in a public statement. “However, instances of diversion, fraud and theft will be proactively investigated, and criminal charges will be sought to remove bad actors, regardless of their position or influence.”

Arrest warrants for “obtaining drugs by fraud,” a Class D felony, were issued for seven suspects: April Jones, Shameka Wright, Gerald W. Jennings, Lauren Delk, Austen Delk, Taylor Perkins, and Demario Rose, according to the DFA. 

In addition, ABC Enforcement officials announced the arrest of a former Helena Police Department officer, Greg McDaniel. That arrest was in connection to an investigation into obtaining drugs by fraud, the use of a communication device—both felonies—and delivery of a controlled substance, a Class A misdemeanor.

As a result of the investigation, McDaniel resigned from his position with the police department, according to the DFA.

“Medical marijuana is a regulated product in Arkansas, and its distribution must strictly comply with all applicable laws,” DFA Secretary Jim Hudson said in a public statement. “Whenever those working in the industry illegally divert a licensed product or engage in fraud, ABC will act swiftly to protect the public.”

The ABC Enforcement investigation remains ongoing and other arrests could be forthcoming, according to the DFA.

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