South Dakota Felony Charges Point to Critical Risk to Cannabis Industry

In 2015, publicly traded Monarch America (OTC: BTFL) was touting its consulting project in South Dakota, a cannabis resort on the grounds of the Flandreau Santee Sioux Tribe. Before the grand opening on New Year’s Eve, the project came to a screeching halt, with the tribe burning the first crop.  Last week, South Dakota brought felony charges against Jonathan Hunt and Eric Hagen of Monarch America.

Not only were consultants charged rather than the operators, which in this case were Native Americans, but the charges are related to the duo bringing in cannabis seeds. One of the vexing problems in the U.S., where cannabis is federally illegal, is how to begin growing in states that legalize.  In this case, South Dakota has no legal cannabis, but the Tribe was attempting to comply with the Cole Memorandum.

Rob Hunt (no relation to Jonathan Hunt), who is a partner at Tuatara Capital, a cannabis-focused private equity fund that has raised $93mm, is concerned about the action.

I’ve never seen charges brought forth on the immaculate conception issue … this is a brand new question and one that the cannabis industry is watching.

Rob Hunt Tuatara
Rob Hunt, Partner at Tuatara Capital

Read Dana Ferguson’s “Marijuana industry watches ‘game changer’ S.D. cases”:

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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