Banks–The New Targets of the Federal Crackdown Against Medical Marijuana?

In what appears to be an effort to destroy the burgeoning medical marijuana industry, U.S. Attorney Melinda Haag sent a warning letter to Chase Bank.  The letter threatens the bank (which holds the mortgage on a piece of property that currently contains a dispensary) may face charges and any money they have received in the past from the property may be subject to “be subject to seizure and forfeiture.”  Dispensaries and other medical marijuana businesses have struggled in the past to get loans from banks or even to get bank accounts to deposit their money.  This current move by the federal government could result in further hardships for the industry.

According to an article by The Bay Citizen,

Advocates for pot clubs say the banks have become yet another battleground in the fight between the state-sanctioned medical marijuana industry and federal prosecutors upholding the government’s ban on marijuana.

Pot club advocates say banks routinely refuse to do business with dispensaries once they find out what industry they’re in. Oakland’s Harborside Health Center, the largest dispensary on the West Coast, was recently dropped by its bank, Harborside officials said.

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7 comments

  • not sure if you reported this but here in colorado the only bank who had MMJ accounts Dropped all the accounts at the end of september of this year!

    there is talk about MMJ people coming together here in the state and forming their own credit union!

    ya know i used to want to come to CA and work in the MMJ industry there but to be quite honest, im INCREDIBLY pleased with my state here 🙂 we have a ton of regulations that so far seem to be keeping the feds at bay, knock on wood.

    thats not to say i still dont want to move to humboldt or mendo, the shear beauty of the area and the culture are the only things drawing me now though 🙂

  • not sure if you reported this but here in colorado the only bank who had MMJ accounts Dropped all the accounts at the end of september of this year!

    there is talk about MMJ people coming together here in the state and forming their own credit union!

    ya know i used to want to come to CA and work in the MMJ industry there but to be quite honest, im INCREDIBLY pleased with my state here 🙂 we have a ton of regulations that so far seem to be keeping the feds at bay, knock on wood.

    thats not to say i still dont want to move to humboldt or mendo, the shear beauty of the area and the culture are the only things drawing me now though 🙂

  • i should add that i am now a budtender here in CO and have had a first hand look inside this industry!

  • i should add that i am now a budtender here in CO and have had a first hand look inside this industry!

  • Kind of off topic, but, did anyone see that Cain for president ad with the guy smoking what looks like a joint, and then Mr. Cain smiling at the camera?

  • Wow these brainless Fed DA’s really want to drive it all back into the dark ages of high prices and make it more attractive to real criminals. Then they will not even be getting any taxes from the MM industry which is trying to run a straight up operation. Real short sighted and will likely have a backlash to the administration come election time.

  • Wow these brainless Fed DA’s really want to drive it all back into the dark ages of high prices and make it more attractive to real criminals. Then they will not even be getting any taxes from the MM industry which is trying to run a straight up operation. Real short sighted and will likely have a backlash to the administration come election time.

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