WEST PALM BEACH, Fla., Sept. 18, 2014 /PRNewswire/ -- As more states legalize marijuana for medical or recreational use, budding entrepreneurs believe they will get rich from marijuana businesses that comply with the laws of a particular state. However, marijuana businesses that comply with state laws are still breaking federal law and, therefore, are criminal enterprises. McDonald Hopkins addresses this issue in a special report designed to help potential investors, vendors, and professionals, such as lawyers and bankers, understand the risks involved in participating in the so-called "legal marijuana business."
The report, which is authored by Bruce Reinhart, co-chair of McDonald Hopkins' white collar and government compliance practice group, details how federal law carefully regulates controlled substances, and that only certain persons registered with the DEA can manufacture, distribute, and dispense controlled substances. Reinhart outlines the tremendous risk businesses and business owners take on when dealing with legal marijuana businesses, including exposure to criminal prosecution, loss of assets, civil penalties, loss of licensure, and fiduciary duty litigation. This risk is assumed in an environment with limited, if any, protection from legal counsel or insurance. Given the current legislative landscape, the report warns that the decision to enter the legal marijuana market should be made cautiously and with the advice of legal counsel experienced in criminal, civil, and forfeiture law.
Click here to view a full version of McDonald Hopkins' Special Report on the "legal marijuana business."
About McDonald Hopkins
Founded in 1930, McDonald Hopkins' mission is to provide insightful legal solutions and business counseling that help our clients strategically plan for an increasingly competitive future. McDonald Hopkins is a business advisory and advocacy law firm with locations in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach. Our subsidiary, McDonald Hopkins Government Strategies LLC, is based in Washington, D.C. and led by former Congressman Steven LaTourette. McDonald Hopkins Government Strategies is not a law firm and does not provide legal services. For more information about McDonald Hopkins, visit mcdonaldhopkins.com.
Deborah W. Kelm
McDonald Hopkins LLC
600 Superior Avenue, East, Suite 2100
Cleveland, Ohio 44114
SOURCE McDonald Hopkins