Feds Launch Probe Into California Cannabis Companies

Prosecutors with the U.S. Attorney’s Office for the Eastern District of California have launched a “wide-ranging” investigation of California cannabis companies featured on Weedmaps, according to MarketWatch.

Criminal prosecutors in the U.S. attorney’s office for the Eastern District of California ordered the production of records from Ghost Management Group LLC, which owns a subsidiary called Weedmaps that provides an online directory of cannabis retailers. Weedmaps’ online services allow pot consumers to rate and compare stores, find deals and place orders for delivery.

The subpoena covers documents related to cannabis businesses listed on Weedmaps, and records related to its ordering service. The government also sought documents and other records kept by Weedmaps related to its own staff, investors and accounting, according to the subpoena issued late last year.

It’s not clear what exactly prosecutors are investigating. Weedmaps says it is cooperating fully with the probe.


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