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Could the governor face arrest for money laundering?
That’ll get some clicks.
* The op-ed…
Under the longstanding definition of money laundering and current federal law that categorizes cannabis as an illegal substance, there is virtually no reason that Illinois Gov. J.B. Pritzker—as well as his fellow governors across the country—should not be arrested on federal charges. Consider that on an annual basis, the governors of any state that allow regulated and taxed cannabis markets to break more federal money laundering laws than Al Capone could ever imagine. The FBI should be knocking down the doors of the governors’ mansions in every state with a regulated market. And if that sounds ridiculous, it’s because it is—but not for the reason you might be thinking.
At its most basic, the crime of money laundering occurs when illegally obtained money is combined with “clean,” legally obtained cash in order to disguise its origins and allow it to be integrated into the legal economy. If there is a more precise definition of what happens when tax revenue from federally illegal cannabis sales is combined with state coffers, I’d love to hear it. Cannabis sales are taxed approximately 30% in many regulated markets. Those taxes are collected and used by states to fund an array of state services, from education to transportation to public safety. So while the cannabis industry is hamstrung due to IRS tax code 280E and the lack of access to federal banking services, traditional debt vehicles or U.S. equity markets, state governors are essentially laundering money from regulated cannabis sales. How can this be possible?
When you consider the current law, the state governments taxing these regulated markets are no different than a cartel conducting money laundering on a scale that has never been seen—much less endorsed—by a government entity in this country. This is what is patently ridiculous about the current system and why very little of it makes sense.
*** UPDATE *** Crain’s changed its headline…
Why cannabis banking laws need to change now
The original clickbait tweet is still up, however.
…Adding… The tweet has now been taken down as well.
posted by Rich Miller
Wednesday, Mar 9, 22 @ 9:10 am
Sorry, comments are closed at this time.
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Isn’t this the definition of clickbait?
Comment by New Day Wednesday, Mar 9, 22 @ 9:12 am
If it is, then the “charges” would be Romper Room compared to the likes of Blago, Ryan, Paul Powell and Orville Hodge.
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Mar 9, 22 @ 9:13 am
Betteridge’s law of headlines: https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headlines
“Any headline that ends in a question mark can be answered by the word no.”
Comment by Scott Wednesday, Mar 9, 22 @ 9:14 am
Hey, great job of accidentally making the case for full federal legalization of cannabis, Crain’s Opinion Contributor Buzz Killington.
Comment by Roadrager Wednesday, Mar 9, 22 @ 9:17 am
Uh, disguise? It’s all public record. There’s no deceit here, no money is being hidden or records falsified.
Comment by Perrid Wednesday, Mar 9, 22 @ 9:19 am
The op-ed writer would know a thing or two about misconduct:
“Pot firm’s co-founder settles suit alleging he created ‘toxic working environment,’ used company secrets for new venture”
https://chicago.suntimes.com/cannabis/2021/2/8/22273386/cresco-labs-marijuana-cannabis-sunnyside-dispensary-illinois-canada-joseph-caltabiano
Comment by Google Is Your Friend Wednesday, Mar 9, 22 @ 9:19 am
“ Hey, great job of accidentally making the case for full federal legalization of cannabis, Crain’s Opinion Contributor Buzz Killington.”
Pretty sure that was the point.
Comment by New Day Wednesday, Mar 9, 22 @ 9:23 am
Wait, so he was a skeezy weed guy? Well that makes it even funnier.
Comment by Roadrager Wednesday, Mar 9, 22 @ 9:23 am
Go ahead, arrest him. He’s got more and better lawyers than the feds have.
Comment by Bruce( no not him) Wednesday, Mar 9, 22 @ 9:25 am
Is this satire or sarcasm that no one is getting?
Comment by Baloneymous Wednesday, Mar 9, 22 @ 9:29 am
Once upon a time commercials proclaimed more doctors smoked Camel Cigarettes, today smoking marijuana is medicine.
Gambling was once considered a Vice, today we call it Lotto.
Oh yeah and gas in the 60s was 19 cents..but I digress.
Comment by Just-In Wednesday, Mar 9, 22 @ 9:30 am
Perhaps Crain should do a sobriety check on an author before printing a piece. This is a doozy.
Comment by Norseman Wednesday, Mar 9, 22 @ 9:31 am
” … the likes of Blago, Ryan, Paul Powell and Orville Hodge.”
And they were pikers compared to Len Small and “Big Bill” Thompson.
Comment by Anyone Remember Wednesday, Mar 9, 22 @ 9:33 am
Why stop at the governor? Local guys getting pot money too. If your going to sensationalize, be grandiose. All Illinois mayors going to federal prison for money laundering sounds even better.
Comment by Lurker Wednesday, Mar 9, 22 @ 9:35 am
I get this is tongue-in-cheek, but I can’t tell if they are arguing for or against federal legalization? In either case, the system is completely bonkers and the feds should allow these cannabis businesses to work with FDIC-backed banks.
Comment by StealYourFace Wednesday, Mar 9, 22 @ 9:35 am
Funny thing is that illegal gains are actually taxable. Pretty important law enforcement tool for obvious reasons. Illinois is supposed to be collecting taxes on embezzled funds, street drug sales, all sorts of illegal stuff. Obviously it’s hard to collect, but then the tax fraud charge is a useful backup for prosecutors.
Good lesson on the nature of sovereign governments for the “run it like a business” crowd.
Comment by vern Wednesday, Mar 9, 22 @ 9:35 am
== accidentally making the case ==
Accidentally?
That’s the point.
The following goes back to a comment here from a few weeks ago about supposed ‘insider trading’.
Now pair the commentary in this article, with the pending banking regulations currently at the federal level to resolve exactly this issue.
Then, when the price of cannabis stocks jumps because of that legislation, people will suddenly claim there was insider trading.
Nevermind all of this is public info for anyone who wants to look at it.
It’s easy to fawn concern for insider trading as the reason you didn’t make the decision to invest in something obvious to many others.
There’s a reason this is showing up in Crain’s *business*.
If you know of the pending federal legislation, this article fits in perfectly.
Comment by TheInvisibleMan Wednesday, Mar 9, 22 @ 9:35 am
“”Buzz Killington”" LOL
Comment by walker Wednesday, Mar 9, 22 @ 9:37 am
==And they were pikers compared to Len Small and “Big Bill” Thompson.==
Don’t forget Joel Matteson.
Comment by NonAFSCMEStateEmployeeFromChatham Wednesday, Mar 9, 22 @ 9:39 am
==today smoking marijuana is medicine==
It has been for decades. And most cannabis use today is probably edibles, not smoking. Last I checked, cigarettes, alcohol, and gambling have been legal for a long time. Not sure what your point is.
Comment by The Velvet Frog Wednesday, Mar 9, 22 @ 9:40 am
Clickbaity for sure, but it does shine a light on an issue that I fear will never be addressed. This insane patchwork fed-state legal framework for cannabis is insane and needs to be rectified.
However, it seems pretty clear that if that didn’t happen the last 2 years, we are a long, long way away from that happening.
Comment by SWSider Wednesday, Mar 9, 22 @ 9:44 am
Crains just letting any idiot write op-eds these days? Please tune in next week for my piece about how the dinosaurs would still be alive today if it weren’t for Biden’s weak stance on Russia or whatever.
Comment by Commisar Gritty Wednesday, Mar 9, 22 @ 9:47 am
“That’ll get some clicks.”
Just like Murrow and Cronkite always aimed for, clicks.
Comment by Flyin' Elvis'-Utah Chapter Wednesday, Mar 9, 22 @ 10:02 am
So this is what passes for journalism? waste of editorial space, Crains.
Comment by Amalia Wednesday, Mar 9, 22 @ 10:05 am
Love how Craine’s already updated the title. Excited to see this headline blasted in the background of a Republican ad.
Comment by Lakefront Wednesday, Mar 9, 22 @ 10:08 am
===journalism===
It’s an op-ed.
It’s like watching FoxNews prime time and thinking it’s “news”
It’s opinion.
It’s clickbait opinion due in part to “targeting” the governor and what things are in “opinion” versus laws, federal and state, and their intersection.
It’s a Trib Edit Board type clickbait.
Comment by Oswego Willy Wednesday, Mar 9, 22 @ 10:09 am
Will JB need a good defense lawyer? Is Irvin available?. Asking for a friend. (banned emoji)
Comment by froganon Wednesday, Mar 9, 22 @ 10:09 am
Oldest adage in journalism. If a headline ends with a question mark, then the answer is always “no.”
Comment by TJ Wednesday, Mar 9, 22 @ 10:18 am
Article raises pertinent issues, given recent confiscations in CA:
https://www.latimes.com/california/story/2022-01-28/marijuana-cash-seized-armored-car-fbi-san-bernardino-sheriff
Comment by Brian Wednesday, Mar 9, 22 @ 10:27 am
The update to the headline makes sense. Crain’s should have used that one to start with.
Perhaps this op-ed will be followed up with a more in depth article on the specifics of current and proposed federal laws, instead of just these vague op-ed musings.
Comment by TheInvisibleMan Wednesday, Mar 9, 22 @ 10:35 am
I do not see prosecuting the Governor. I do see arresting 75 recreational cannabis licensees and prosecuting them; 20 years in a federal pen each.
Comment by Al Wednesday, Mar 9, 22 @ 11:32 am
And then there is the issue of local governments taxing local sales. And then there is the problem that the DOJ has been formally instructed not to prosecute such charges.
Comment by H-W Wednesday, Mar 9, 22 @ 11:49 am
The Illinois cannabis scene is a business school case study. We have dispensary lawsuits holding up social equity licenses, and some of the litigants are likely being propped up by the multistate operators. Then we have the Illinois Cannabis Small Business Association which is a front for multi-state operators. This group is opposing legislation that makes it easier for craft grows to build sustainable operations. Why are they in opposition? The members of the small business association — the big boys — are afraid social equity licensees will sell to the big boys if their craft grow are viable? And finally, we have Joe Catalibiano and Pete Kadens (of Cresco and GTI fame) SPAC spewing stuff about JB going to jail if the white-owned cannabis companies don’t have access to banking? Tell me again how much these white guys care about social equity, again? Make it make sense!
Comment by cannabis fun Wednesday, Mar 9, 22 @ 12:45 pm
“Why do they keep doing this?”
We ask while spending all day discussing this
Comment by Commisar Gritty Wednesday, Mar 9, 22 @ 2:03 pm
Does this mean that “Ozark” on Netflix is a documentary?
Comment by Keeping Track Wednesday, Mar 9, 22 @ 4:04 pm
No reason In breaking the trend of governors going to prison. Arrest him, convict him, and send him on 😉
Comment by State Employee#1 Wednesday, Mar 9, 22 @ 8:04 pm