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The Justice Division is investigating marijuana-related corporations that allegedly took out coronavirus aid loans in violation of federal guidelines, with third-party actors profiting from a whistleblower coverage that enables them to take a share of settlement cash in the event that they report on hashish corporations.
Varied sources within the hashish authorized area confirmed the pattern with Marijuana Second this week, though they declined to determine the energetic shoppers concerned within the litigation. This clearly entails each the direct hashish corporations which are concerned within the manufacturing or sale of marijuana, and the auxiliary corporations that don’t contact the crops.
A public case that the DOJ disclosed final month concerned a holding firm of the eponymous hashish firm Bob Marley Marley Pure.
Sidesolve, an organization specializing in facilitating whistleblower complaints for alleged violations of the Paycheck Safety Program (PPP), Sidesolve, efficiently reported the hashish enterprise Docklight Manufacturers to DOJ for receiving funds in violation of a coverage federal Small Enterprise Administration (SBA) that prohibits corporations from taking on companies. loans in the event that they work with hashish or not directly serve the trade.
“As a result of federal regulation prohibits the distribution and sale of marijuana, monetary transactions involving a marijuana-related enterprise usually contain funds derived from unlawful actions,” SBA mentioned in 2020. “Due to this fact, companies that derive earnings from marijuana-related actions or that assist the top use of marijuana could also be ineligible for SBA monetary help.
Sources who requested anonymity mentioned there are as much as 100 energetic circumstances, with the Justice Division sending letters notifying corporations immediately or not directly related to the state's authorized marijuana trade that they’re being investigated. for doable violations beneath the False Claims Act (FCA). .
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Justice Division investigating marijuana-related companies for COVID aid loans, trade sources say
