A group of politically connected Cannabis farmers in Missouri must destroy their marijuana products and give up their licenses as part of an agreement to resolve a dispute with the state.
The licensees and the director of the state’s medical Cannabis program signed an eight-page agreement in May, reports the St. Louis Post-Dispatch. The agreement stipulates state regulators and the licensees reached a “compromise” over alleged regulatory violations in an effort to end a legal battle.
The licensees in question that signed onto the agreement — Archimedes Medical Holdings, FUJM, and Holistic Health Capital — are all based in Perryville, Missouri. Archimedes Medical Holdings controls two cultivation licenses and has used the brand name Solhaus. FUJM controls one cultivation license and Holistic Health holds a manufacturing license.
The agreement stipulates that the licensees must destroy some of the weed. But the state allowed the licensees to process and sell some of the product.
“Pervasive Irregularities” In Missouri
The suspension orders noted “pervasive irregularities.” These issues prevented state regulators from confirming any product from the licensees’ three grow facilities had been properly tested. The orders also noted “numerous outages” on security cameras that went unreported to state regulators.
Orders to suspend operations at two of the facilities also noted “employees are using and applying pesticides without proper training or proper Personal Protective Equipment.”
An order to suspend operations at one facility notes, “the licensee has left medical marijuana product unattended, unsecured, and in unsanitary conditions.”
Licensees Don’t Admit Any Liability Or Wrongdoing
“Licensees disagree with the Department’s position,” the agreement said, according to the Missouri Department of Health and Senior Services.
The aim of the settlement is to “resolve the Department’s allegations”. The agreement “shall not be construed as an admission of liability or wrongdoing by any Party.”
Tanner Rolfes, lawyer for the licensees, said his ”clients are pleased with the settlement agreement and looking forward to the future.”
Here’s What “Politically Connected” Really Means
Hayley Rosenblum Dudney, the registered contact for Archimedes, is the daughter of well-known St. Louis defense attorney Scott Rosenblum. Tanner Rolfes works for Rosenblum’s law firm.
Dudney’s husband, Blonie Dudney, contributed $5,000 to Missouri Gov. Mike Parson’s political action committee in 2019. Hayley and Blonie Dudney are pictured in the photograph accompanying this article.
This year, Blonie Dudney gave $2,650 to Secretary of State Jay Ashcroft’s campaign. Ashcroft, another Republican like Gov. Parson, is gearing up to run for Missouri governor in 2024.
Hayley Rosenblum Dudney signed the agreement as a manager for Archimedes. Blonie Dudney signed the agreement as a manager of FUJM LLC. Blonie Dudney also signed the agreement as a manager for Holistic Health Capital.
Jason Buchheit, who also signed the agreement as a manager for both Holistic Health and FUJM, has also contributed to Parson’s campaign. How con-veeee-nient!
No Licenses For You!
“The primary owners of these licenses will not be eligible to own licenses in the future,” said Lisa Cox, spokeswoman for the Department of Health and Senior Services.
Clovr, a Kansas City company, sued Archimedes in January. It said the state had determined the company trafficked marijuana outside Missouri. However, orders to suspend operations from the state, dated between Sept. 22 and Oct. 8, don’t reference such findings. According to Clovr, the state froze $1.7 million in inventory.
“Archimedes, along with individuals harmed by false accusations, will continue to seek legal action against any and all unscrupulous entities or individuals that opportunistically made and pursued false and defamatory claims,” attorney Rolfes averred.