New Lawsuit in Humboldt County Spotlights Non-Payments By Cannabis Distributors

Sunrise on young marijuana flower bud

[Image created by Kym Kemp]

The three tiers of California’s recreational cannabis marketplace involve an elaborate series of handoffs. Generally, growers sell to distributors who then sell their product to retailers and then the product moves onward to be purchased by consumers. In Humboldt County this process is failing on multiple levels, with many growers grappling with years of non-payments by distributors for their weed. 

On November 10th, the Willow Creek based cannabis grower “H1 Canyon” filed a lawsuit in Humboldt County Superior Court. The lawsuit states that Eureka based “Trusty Transportation and Distribution” took over $117,000 worth of cannabis product from H1’s medium outdoor permitted farm in April of 2025 without paying. 

Monique Ambrosini owns H1 Canyon LLC with her husband Brian. She confirmed in a phone interview that Trusty made the first agreed upon installment payment, but had stopped payments and any communication by July. By that point “Trusty Transportation” was no more, at least on paper. Owners Melinda and Randall Cox had ended their former distribution license in May, but by August Melinda Cox had formed a new licensed cannabis business named “Trusty Partnership.” 

Ambrosini contends that Trusty never intended to pay, saying, “[E]very farm they got product from they knew they would do this, they shut down an entity and created another within months.” She says that multiple farms that worked with Trusty had not been paid, including other growers owed over $100,000. She alleges that instead of paying growers, the Cox’s conspired to take large amounts of cannabis for free and then transfer their assets to a new entity leaving farmers high and dry. 

The lawsuit’s written complaint alleges the license switch “was designed to obfuscate the true identities of the businesses and/or enable (Trusty) to transfer assets between the different entities thereby making it difficult for parties such as (H1 Canyon) to locate assets taken by Randall Cox and Melinda Cox.” The document states that a deal sheet, Metrc manifest, purchase order, and invoice were agreed to at the time of sale, constituting a written contract. 

Issues of non-payment throughout the cannabis marketplace are nothing new, especially in Humboldt. Sunrise Mountain Farms founder Lorelie Sandomeno stated in an email, “I have had non-payments in the tens of thousands every year for about 5 years due to distributors or manufacturers not paying for the product they purchased and picked up from me. I first brought it up in an HCGA (Humboldt County Growers Alliance) meeting 3-4 years ago as a major issue, because most every other farmer I spoke with at the time also experienced non-payments.” 

HCGA President Hannah Whyte confirmed many of the same concerns. Whyte is the owner of Emerald Queen Farms, and has dealt with non-payments from distributors, especially in past years. She says of the current situation, “There are distributors who do good business, and ones who don’t. A lot of bad actors have dropped out. There are ways that bad actors persist in the system and open new licenses…the way it should work isn’t possible due to the required framework at the state level.” 

Whyte offers self distribution as a possible solution to grower woes. “Farmers should be able to self distribute, and the HCGA advocates for more parties to have self-distribution.” She also pointed out that while technically usable, the current system of self-distribution is difficult to navigate. “People can do self-transportation, but you need to have a direct relationship with retailers. It’s possible but challenging for farmers to wear all of these hats.” 

When contacted for this story, Melinda and Randall Cox refused to answer questions but issued a short statement. The statement, credited to Melinda Cox, reads in part “Retailers who purchased product from Trusty then sold it to consumers and elected not to remit payment to Trusty is the main culprit for Trusty’s closure…Trusty worked years and years providing safe, compliant and accurate sales fulfillment for our community. The truth is, the cannabis market failed everyone who entered it, but no supply chain can function when compliance is mandatory and payment is optional.” 

While the claim that payments are ‘optional’ is remarkable, many distributors have been hit hard by retailers not paying them for product. The largest cannabis distributor in the state from 2018-2022, HERBL, fell into receivership in 2023 after being owed over ten million dollars by retail outlets. HERBL went on to sue more than 10 retailers, all while complaints for remaining unpaid bills from growers and manufacturers mounted. 

Earlier this year, the nation’s oldest cannabis retailer Berkeley Patients Group was hit by three lawsuits for unpaid bills totaling over $250,000. The issue of non-payment for cannabis products appears to be pervasive and across the entire recreational market regardless of category, and can impact distributors along with growers.

Complaints about cannabis businesses are generally directed to California’s Department of Cannabis Control (DCC). However, because the department works in conjunction with other agencies for enforcement, responses are typically slow and limited. Monique Ambrosini expressed frustration with the process, “Why give the same people another microbusiness after complaints to the DCC?” 

Growers are left waiting for payments, often in installments after giving their product to distribution. Meanwhile, distributors are trying to fund their purchases through sales to retailers, it’s a vicious cycle. Hannah Whyte says of the current marketplace, “The margins are just so thin, neither distributors nor farmers are making a lot of money. You have to negotiate when the product is no longer in your hands.” 

Facebooktwitterpinterestmail

Join the discussion! For rules visit: https://kymkemp.com/commenting-rules

Comments system how-to: https://wpdiscuz.com/community/postid/10599/

Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

80 Please improve the conversation by disagreeing thoughtfully and backing your claims with facts
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Farce
Guest
Farce
6 months ago

You let them drive away with your product. Back in the day we only allowed family to do that and we knew where they lived. We all know the scene is falling apart. Greed led to slack and slack led to slop and slop led to inviting the government to take over and set the rules lol! You cannot get blood from a rock. And if that rock is also a thief then …what are you going to do about it? Hey- you embraced the corporate “legalization” and stood by while your neighbors got abated so I have not much sympathy when you finally get the same raw deal. Hope you enjoyed the fun time$ while the rest of the county ate poop. I guess lots of people could not see the logical conclusion of this corporate “legalization” scheme? This is it…a bunch of people with broken moral compasses playing musical chairs as the chairs disappear rapidly…and the music keeps stopping

Brackish
Guest
Brackish
6 months ago
Reply to  Farce

This is a flawless description of the situation. So well said

NorCalNative
Guest
NorCalNative
6 months ago
Reply to  Farce

Your first two sentences says it all to me. Dad used to say “money talks and bullshit walks.”

Shortjohnson
Guest
Shortjohnson
6 months ago
Reply to  Farce

my family are the last people I would let pay on Tuesday for a hamburger today

Yabut
Guest
Yabut
6 months ago
Reply to  Shortjohnson

Now it has been decades since I’ve seen a reference to that phrase.

treeman53
Member
treeman53
6 months ago
Reply to  Shortjohnson

wimpy.

Big Rick
Guest
Big Rick
6 months ago

Oh no another shady cannabis enthusiast committing shady cannabis deals in the shady cannabis industry wow how shady

Permanently on Monitoring
Guest
Permanently on Monitoring
6 months ago
Reply to  Big Rick

It is astonishing that Humboldt thought the “Legal Marijuana Business” would ever work out for Humboldt…

You should have all bailed in 2016, like I told you…

Everyone involved in Marijuana was a criminal, until the Vote Passed, so why would you expect anything to change?

Of course the taxes were not paid, and of course the “distributor” made off with the product “On Credit”…

This shit happens all the time in regular businesses…

Sorry for your loss, but where is he?

He is gone…

Kym Kemp
Admin
6 months ago

Everyone involved in Marijuana was an outlaw. There’s a difference.

Yabut
Guest
Yabut
6 months ago
Reply to  Kym Kemp

Between criminal and outlaw? Not like that seems to imply. Pot growers were always criminals before legalization. Only sometimes enforcement caught up with them and they became outlaws when they ran away. Romanticizing “outlaw” is for Hollywood.

Ben Round
Guest
Ben Round
6 months ago
Reply to  Yabut

There’s a quaint notion of innocence until proven guilty. People are only criminals after conviction. They can be outlaws before that though.

Yabut
Guest
Yabut
6 months ago
Reply to  Ben Round

You need to look up the definitions. Crime is defined in the law. People who engage in it are criminals whether they are convicted or not. What you are trying to imply is that the legal process to penalize criminals is the same as the definition of crime. What a hoot it would be to say that if a man is not convicted of, let’s say, murder, no murder was done. Murder or not exists outside of who is judged.

On the other hand, no one can be an outlaw unless they have come to the attention of the law. Except as I said, in the plots Hollywood movies. Or maybe if they intend to commit crimes as a rebel. But even then they must see their acts as crimes.

Permanently on Monitoring
Guest
Permanently on Monitoring
6 months ago
Reply to  Kym Kemp

Yes, I broke the law every time I bought some, smoked some, sold some and shared some…

I never grew any, except one year I grew 2 plants…

Marijuana was and still is illegal…

But now it is grown nearer to markets, and by Billionaires, presumably, legally…

It is a fine distinction, but simply not agreeing with a law or ignoring the law will change your definition of crime…

Theft is a crime, a thief is a criminal.

Kym Kemp
Admin
6 months ago

That some actions are a crime is a crime.

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

“That some actions are a crime is a crime”

vs

“That some actions are a crime is unjust.”

AI Overview

The phrase “That some actions are a crime is a crime” suggests that the very act of defining something as criminal is itself a wrongdoing or unjust, while “That some actions are a crime is unjust” directly asserts that certain legally defined crimes are inherently unfair or violate morality, like segregation laws.

The first implies the system is flawed in its power to criminalize; the second implies specific laws within the system are morally wrong, highlighting the distinction between legality and justice, as some immoral acts aren’t crimes, and some crimes aren’t major moral wrongs.

“That some actions are a crime is a crime”

Focus:

The act of lawmaking/criminalization itself.

Meaning:

It questions the legitimacy or morality of the state’s power to label behaviors as criminal, suggesting this power is abused or inherently unjust.

Example:

Arguing that laws criminalizing poverty or certain forms of protest are inherently oppressive acts by the state.

“That some actions are a crime is unjust”

Focus:

Specific laws or types of crimes.

Meaning:

It acknowledges the law but critiques its content as morally wrong, often aligning with concepts of civil disobedience (MLK Jr.).

Example: Martin Luther King Jr.’s argument that segregation laws are unjust because they degrade human personality, even though they were legally binding at the time.

Key Differences & Connection

The first statement critiques the source/process (lawmaking), while the second critiques the content/outcome (the specific law).

The second idea (unjust laws) can lead to the first (criminalizing unjust laws becomes a crime against justice).

Both highlight the gap between what is legal and what is moral/just, a central theme in legal philosophy and ethics.

___________________________________

That some actions are not a crime is a crime…

That some actions are not a crime is unjust…

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

‘Distinction without a difference’

“A distinction without a difference is a type of logical fallacy where an author or speaker attempts to describe a distinction between two things where no discernible difference exists. It is particularly used when a word or phrase has connotations associated with it that one party to an argument prefers to avoid.”

-Wikipedia-

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

Hmmm…

First it’s…

“There’s a difference” between a criminal and an outlaw…

(Which is a “distinction without a difference”…)

Then it’s…

“That some actions are a crime is a crime.”…

(Which is a “difference without a distinction”…)

I like stars
Guest
I like stars
6 months ago

“Trusty”? You can’t make this shit up, lol.

Truth Be Told
Member
Truth Be Told
6 months ago
Reply to  I like stars

Right?

The distro model has been a key factor in small farm extinction — it siphons profits away from growers even when they’re paid for their product — but is disastrous when they don’t pay, as happened here.

Ironically, the distro model was set up as a way to keep growers honest but the real crooks went into biz as distros.

Farce
Guest
Farce
6 months ago
Reply to  Truth Be Told

The distro system was mandated as a requirement , Our Assemblyman Woods had discussions with his good friend Ted Simp- a wine distributor- and they came up with this method of adding another layer of regulations and potential to separate smaller farms from their own product sales. Then Newsom’s appointed leaders at the Cannabis Control required it as they also shot down the acreage cap and set up an unworkable track-and-trace system. None of these things were done to help any smaller farms do anything but fail. Assemblyman James Woods…Ted Simp…Governor Newsom…and all the others went along for the ride

lifer
Guest
lifer
6 months ago
Reply to  Farce

Dont forget about the DeAngelos in you list of snakes! Ted Simp lol!! I had forgotten all about that charlatan!! I had the displeasure of his company one afternoon at the Benbow, knew right then we were fucked!

Farce
Guest
Farce
6 months ago
Reply to  lifer

DeAngelo for sure. Very good friends with that a-hole who owns the “band” MoonAlice. Roger McNamee with all his money from Silicon Valley. Bought himself some old good musicians and makes them play his terrible songs. It’s creepy! Actually PAID festival organizers for stage time for his band (Ssshhh- that’s an industry secret) distributing his free posters all proclaiming his rock fantasy of himself. Creepy!! And all the while telling all the gullible hippies to vote for “legalization”. So his good buddy and fellow investor DeAngelo could blow up mega-grows in Monterey County and take over. They were vary active in that failed Prop 19 “legalization” that did not pass- it was so only some 3-5 farms would be permitted to supply the entire state. DeAngelo going on about how all the growers in Humboldt and Mendocino were greedy and needed to be replaced…by HIM! What a major asshole that guy still is. Thanks for reminding me!! I did a little business in Oaksterdam with him and saw through his bullshit immediately. He played the “it’s all for the sick people” card while he basically used them all as a front to dominate the business. Meanwhile some of us actually did supply cancer patients with free weed and with free Simpson Oil- only we didn’t talk about ourselves so greatly or loudly. Guy is scummy sleaze. And yes- there are many others who came in to grab the gold….eliminate the little people and take take take

Ben Round
Guest
Ben Round
6 months ago
Reply to  Farce

Yep! And let’s not let voters in other states know about Newsom when he makes his bid for the White House. He’s an ego trip on steroids!

Farce
Guest
Farce
6 months ago
Reply to  Ben Round

I’m telling everybody I can but the media is pushing him. I feel like it’s the “legalization” lie all over again. By the time people find they’ve been hornswaggled they will have already voted for their own demise…The mainstream media is like the ocean and the actual truth is small piece of wood…

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago

The whole marijuana industry was founded on not following the rules. Why are they surprised when it comes back to bite them in the ass? No honor among thieves.

(except some were very nice people)

Crikey!
Guest
Crikey!
6 months ago

The tone from the top in this country is being played out locally.

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago
Reply to  Crikey!

Sort of ironic isn’t it? Sadly, human nature will never be cured.

Dusty Spritzwater
Guest
Dusty Spritzwater
6 months ago

Except your store would have been cleaned out long ago if growers were thieves!

Screenshot_20251211-083456
Ernie Branscomb
Guest
Ernie Branscomb
6 months ago

You are right, the growers weren’t the thieves. The users were. And apparently the buyers.

Say what?
Guest
Say what?
5 months ago

Wow man, you have some nerve. I mean you are seriously insulting the very people who gave you their hard earned dollars, legal or otherwise. FYI you took “illegal lettuce” money for decades.

Ernie Branscomb
Guest
Ernie Branscomb
5 months ago
Reply to  Say what?

I think that you missed the whole point! You, and many others, are trying too hard to be insulted. Who the hell is a “say what”.

Kym Kemp
Admin
6 months ago

There were criminals who were marijuana growers (it was in general a lucrative way to make a living and criminals are drawn to that) but in SoHum a large portion of the community were growers and that includes everyone from preachers to Little League coaches as you well know. Many growers were otherwise law abiding folks who religiously followed the aphorism “break one law at a time” and most of their business was conducted on handshakes with very little problems.

And we’re now talking about a legal business. Comparing legal marijuana growers to thieves is pretty insulting, Ernie. I’m pretty fond of you but that sucks.

lifer
Guest
lifer
6 months ago
Reply to  Kym Kemp

Thanks for this Kym. We always considered ourselves to be outlaws, and lived by a moral code. Neighbors were like family and the varius hill communites would rally for each other. Your word and a handshake meant something. By and large the county as a whole accepted us. Except for KMUD and the CSAR or later CLMP report and maybe a year end story with a lame press release from CAMP or the MET (at that time) or a quick blurb on Channel 3 there wasnt a whole lot of press coverage. Then the internet came and the blogs came and there was now a outlet for daily stories of raids with pictures! During those early days, you post a story about a raid and 90% of the comments were pro grower and anti law enforcement. Flash forward to 2013 and the HCSO changed the narritive. No longer were we pot growers, we were now eco terrorists. The press releases were no longer centered on plant count but on environmental violations. The watershed moment though was when they found the dead fisher. The next day there was picture of Renner holding it and a press release saying that the animal had died as a result of consuming rodent poison that was banned from California and if memory serves was illegal in all 50 states. After this incident it seemed like the whole county had shifted. The comments on the blogs went from being pro grower to being very anti growers. We were no longer a few hippies up in the woods growing dope. We were full blown criminals out to harm the enviornment. I remember feeling very sad about this and feeling like legalization was the only path to legtimacy and renewed accpetannce in the comunity as whole.

Kym Kemp
Admin
6 months ago
Reply to  lifer

It was Sheriff Mike Downey. I remember that well. https://kymkemp.com/2013/08/01/willow-creek-bust/

I think growers need to acknowledge that there were those growers who did the huge environmental crimes (I’ve personally been to some of those grow sites) as well as “appreciate?” that HCSO learned to use those bad actors to paint the entire grower community as the same as the worst of their members.

lifer
Guest
lifer
6 months ago
Reply to  Kym Kemp

Yes. Thanks for that correction. It was Downey. Guess my age is showing a bit!

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago
Reply to  Kym Kemp

Kym,
Thank you for the respect. Also, I am very fond of you and especially what you and Redheaded Blackbelt does for our community.

If you observe without leaning toward your own feelings, you will see that we are saying the very same thing. Only differently.

I implied FORMER outlaws.
I said – “except some were very nice people”.
You implied- “except some were very bad people.”

Six of one half dozen of another.

The Marijuana industry was based on providing a product while making a living.
The Timber industry was based on providing a product while making a living.

I really understand how your feelings could be hurt… I am sorry. But keep up the good work.

More later…

Last edited 6 months ago
Kym Kemp
Admin
6 months ago

I didn’t really think you thought most growers were thieves. But that comment did sound like that’s what you thought to me and apparently a few other commenters. I’m glad to know that isn’t what you meant.

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

It didn’t sound that way to me…

Say what?
Guest
Say what?
5 months ago
Reply to  Kym Kemp

He’s now back pedaling his comment as he has exposed himself. There has always been those merchants who took the money up front, then reviled the very people they took the money from in private.

Kym Kemp
Admin
5 months ago
Reply to  Say what?

The Ernie I know is more likely to speak “too honestly” publicly than pretend politeness in public and backbite. There’s a couple of reasons I suggest Ernie as an interview to any reporter who wants to know SoHum–he loves it, he tells great stories, he’s easy to quote, and he’s honest, possibly to a fault.

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

When is an overreaction not an overreaction…???

Ask AI

Why someone should not take an indirect colloquialism like, “no honor among thieves” offensively personal…???

AI Overview

One should not take the colloquialism “no honor among thieves” offensively personal because it is a universal proverb describing the inherent fragility of alliances built on self-interest, rather than a direct judgment of an individual’s character.

Here are the primary reasons to avoid taking this phrase personally:

1. It is a Philosophical Observation, Not a Personal Attack

Systemic Critique:

The phrase is often used to comment on broken systems or groups—such as business cartels, political organizations, or competitive corporate environments—where collective loyalty is being undermined by individual greed.

Abstract Meaning:

It describes the “fragility of alliances” founded on dishonesty. When someone uses it, they are typically making a cynical observation about human nature or a specific situation, not labeling you a “thief” in a literal or moral sense.

2. The Meaning Is Figurative, Not Literal

Idiomatic Nature:

Like saying “break a leg” doesn’t mean wishing physical harm, “no honor among thieves” is a figure of speech. It is used to express that “dishonesty breeds mistrust” in a general way.

Cultural Context:

In modern conversation, it is frequently used to describe any situation where colleagues or associates betray one another for personal gain, regardless of whether the activity is legal or illegal.

3. Understanding the Origin and Evolution

Historical Counterpoint:

The phrase originally appeared as “there is honor among thieves,” suggesting that even outcasts maintain an internal code.

19th-Century Shift:

The “no honor” version emerged in the early 1800s as a more cynical cultural shift. Because the phrase has been part of the English language for centuries, it has become a “frozen” idiom used more for its dramatic flair than as a specific accusation against an addressee.

4. Psychological Reframing

[!!!…➡️ ➡️👉] Not About You: [👈⬅️ ⬅️…!!!]

Psychology suggests that most offensive remarks are a reflection of the speaker’s own perspective, stress, or worldview. If someone uses this phrase, they are likely expressing their own distrust or frustration with a situation rather than making a calculated assessment of your integrity.

Objective Distance:

Stepping back to look at the phrase objectively allows you to see it as a common linguistic tool for describing betrayal, which can help you maintain your internal poise.

__________________________________

Ernie Branscomb’s comment was not directed towards you or anyone else directly nor personally, and definitely was not personally an insult to you, Kym Kemp…

You just personally chose to interpret it as being personally insulting, and as a personal attack, and respond angrily, as if it was, for whatever reason…

Ernie Branscomb is perfectly entitled to his opinion without being condescendingly reprimanded for it.

He did not mention your name, at all, and it was not a reply to you, or to anyone else for that matter…

He’s got a perfectly valid point…

“The whole marijuana industry was founded on not following the rules. Why are they surprised when it comes back to bite them in the ass? No honor among thieves.

(except some were very nice people)

You say…

“And we’re now talking about a legal business. Comparing legal marijuana growers to thieves is pretty insulting, Ernie. I’m pretty fond of you but that sucks.”

But that’s not what Ernie Branscomb was talking about…

He said…

“The whole marijuana industry was founded on not following the rules.”…

He didn’t mention legal marijuana growers, either,

Only you did…

That ain’t “we”…

Because that ain’t what Ernie was talking about…

You say…

“Many growers were otherwise law abiding folks…”…, …”…and most of their business was conducted on handshakes with very little problems.”…

I say…

Many were not…,

…and there were definitely lots of ”partnership” betrayal problems, and financial betrayal problems between “buyers” and “sellers”…

Lets not kid ourselves…

You act like legacy growers grew up and succeeded learning to trust many of each other, more than they learned to succeed by learning to not to trust too many of others and too many of each other…

Maybe if Ernie had colloquially said instead that there WAS/IS “honor among thieves”, you wouldn’t have been so offended…???

Farce
Guest
Farce
6 months ago
Reply to  Kym Kemp

Legal marijuana growers who daily cheat the METRC track and trace and sell their pounds out the back door to other states? There was a great article recently where the court found the DCC had basically created a failed system and has spent these last years lying about it working. You did not run that article, Kym. Lost Coast Outhouse did. The article was quite illuminating although those of who know have known for years. And we also know how sleazy many permit pansies are- deceptive and manipulative and not to be trusted. Many. I’d agree that liars are not thieves…but close cousins!

Kym Kemp
Admin
6 months ago
Reply to  Farce

I’m a little confused, Farce. In one breath you’re cheering on a friend undercutting licensed nurseries, bypassing METRC, and shouting “Vive la résistance!” — and in the next you’re condemning “sleazy” growers for cheating METRC and selling out the back door, calling them liars and near-thieves. Your friend is selling to permit pansies in part, no?

Apparently rule-breaking is admirable when it helps your friends pay the bills, but morally bankrupt when it’s done by people you don’t like to pay their bills. That’s not a value system so much as a mood swing.

Yabut
Guest
Yabut
6 months ago
Reply to  Kym Kemp

Even a person totally uninvolved with pot growing can see the confusion professed is disingenuous. A person who takes the risks of lawbreaking can easily see those who use the pretense of legality to avoid the risk of the law while actually take making money by breaking the law as worse. They become a fraud in addition to their criminal activities. Belittling that as a “mood swing”? Really?

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

What really gets my goat is whenever anyone has the gall to suggest that weed grower’s ever shirked one iota on paying full income taxes even a smidgen on any of their considerable illicit income during any time of the “whole marijuana industry”…

FFS…!!!

How dare they…!!!???

We all know, don’t we, that they all have, without exception, always claimed every last red cent of cash they raked in, and also dutifully filed, without exception, every year with the IRS, and paid every dime they owed in income tax….

Without fail, without exception…!!!

Let’s not kid ourselves…

And it’s not like tax evasion is, and/or, ever was, “stealing” or “theft”…

(Unless of course, you ask AI about it…)

AI’s got a lot of nerve, let me tell you..

And that sucks, too…!!!

Am I right…???

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

I would never accuse anyone, especially the “whole marijuana industry”, of tax evasion, or that it was theft or stealing…

But, this is what AI has to say about it…

“Is tax evasion theft or stealing…???

AI Overview

“What is the Difference Between Tax Evasion and Tax Avoidance …”

“Yes, tax evasion is legally considered a serious crime, a form of tax fraud, involving intentional illegal acts to avoid paying legally owed taxes, which is akin to stealing public funds for personal gain, though some philosophical debates exist about whether all taxation is theft.

It’s a felony with penalties like imprisonment, fines, and civil penalties, as it deprives governments of resources for public services.

Why it’s seen as stealing/theft:

Deprivation of Funds:

Tax evasion deprives governments (federal, state, local) of funds needed for infrastructure, defense, education, social security, etc., which are public services everyone benefits from.

Intentional Deception:

It involves deliberate acts like hiding income, inflating deductions, or creating false records to avoid a legal obligation, which mirrors dishonest taking.

Legal Framework:

Laws treat it as a crime (tax fraud/evasion) under Title 26 of the U.S. Code, with severe punishments, showing societal condemnation.

Key actions considered tax evasion:

Underreporting income or failing to report it.

Claiming false deductions or credits.
Hiding assets or income in offshore accounts.

Falsifying records or keeping two sets of books.

The distinction from tax avoidance:

Tax Avoidance: Legal use of tax laws to minimize tax liability (e.g., legal deductions, credits).

Tax Evasion:

Illegal methods to escape tax liability, making it a criminal act.

In essence, while some might debate the moral foundation of taxation itself, tax evasion is legally and practically understood as an illegal act of taking what is legally due to the public, much like theft.”

The Real Guest
Guest
The Real Guest
6 months ago
Reply to  Kym Kemp

AI sucks…

“What is the historical incidence of tax evasion in the whole marijuana industry…???

AI Overview

“Historically, the entire marijuana industry operated illicitly and thus involved a de facto 100% tax evasion rate prior to state-level legalization. In the modern era of state-legal markets, tax evasion remains a significant issue, primarily driven by high tax rates that allow a large black market to persist, with a substantial portion of sales occurring through unlicensed channels.

Pre-Legalization (Illicit Market)

Before states began legalizing medical and recreational marijuana, the industry was entirely black market under federal prohibition. The government implemented measures like tax stamps for illegal sellers in some states, but these were virtually ignored because the underlying activity remained illegal. Consequently, no taxes were remitted, and tax evasion was universal.

Post-Legalization (Legal and Illicit Markets)

Since state-level legalization, official data on the exact “historical incidence” is difficult to quantify precisely, as the defining characteristic of evasion is that it goes unrecorded.

However, the prevalence is typically measured by comparing the size of the legal market to the persistent illicit market:

Persistence of the Black Market:

High taxes are a major factor contributing to the continuation of the black market, which does not charge taxes and can offer significantly lower prices. This results in substantial “tax avoidance” at the consumer level by opting for illicit sources.

California Example:

California provides a clear case study, where estimates from 2018 suggested legal sales accounted for only 20-25% of total sales, implying that 75-80% of sales were likely untaxed and conducted illegally. More recent estimates suggest the illegal market still accounts for roughly two-thirds of total sales in the state.

➡️ Los Angeles alone faces approximately $400 million in unpaid cannabis taxes from legal businesses (as of Oct 2025), a sign of widespread non-compliance even among licensed operators. ⬅️

[“Those Angels”]

Challenges for Legal Businesses:

Licensed cannabis businesses face high effective federal tax rates due to IRC Section 280E, which prohibits them from deducting normal business expenses because marijuana is still a Schedule I substance federally. This heavy burden incentivizes some legal businesses to underreport income or engage in other forms of tax fraud to survive.

Cash-Based Operations:

Federal illegality also forces many businesses to operate on a cash-only basis, making it harder for tax authorities like the IRS to verify gross receipts and creating opportunities for underreporting income.

➡️ In essence, the historical incidence of tax evasion in the industry has evolved from a universal characteristic of an illicit market to a significant, persistent challenge within the legal market due to regulatory and tax burdens.” ⬅️

___________________________________

The “whole marijuana industry”, Kym Kemp, old, and/or, new, is far from perfect, if you ask AI…

Last edited 6 months ago
Say what?
Guest
Say what?
5 months ago

It was founded on the fact that the logging industry crashed and there were no longer any jobs. It was a response to the pathetic economics of So. Hum and your store cashed in big time, so very nice people supported your business for years. This was a way for people to keep their land initially, then it turned into a monster gold rush, got too big for it’s britches and here we are. You’re closing your store. Garberville is turning into a ghost town as business owners “run for the hills”. The golden goose done died.

old guy
Guest
old guy
6 months ago

Love that photo,

another guest
Guest
another guest
6 months ago

apparently folks like Ernie think that growing a legal plant and paying taxes on it on land you own with permits issued by the state and county makes one a thief

what does that make your idol dear leader?

until today, I assumed the commentor to be a man of integrity

also if peaseants “followed the rules” there would be no
USA no women voters slavery would be legal

make america great again

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago
Reply to  another guest

Pay attention! I am not calling the Growers thieves! I’m calling The Buyers thieves!

And, you should be able to know the the grower got their start by not following the rules.

Get the chip of Your shoulder. You might be surprised to find out that Trump is not the Do-all-end-all. But, he has provided us with some great quotes. You just used one.

Now, give my integrity back “Another Guest”. Most folks with integrity can use their real name, and -own- what they say.

Kym Kemp
Admin
6 months ago

In your original comment, you wrote: “The whole marijuana industry was founded on not following the rules. Why are they surprised when it comes back to bite them in the ass? No honor among thieves.”

Under the ordinary rules of English grammar, the pronoun “they” refers back to the nearest collective noun, “the whole marijuana industry.” Likewise, the phrase “thieves” grammatically attaches to the same subject. Whatever clarification you intended later, that is how the sentence reads as written.

If you want to walk that back, I’d appreciate it. As written, it came across as insulting to many of your neighbors—and to me—and I’d rather keep respect intact with someone I’ve always regarded with a great deal of fondness.

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago
Reply to  Kym Kemp

Kym
I think that you went to a lot of work to conflate a simple expression into a major insult.

I guess that I am in the great company of President Bill Clinton who famously said “it all depends on how you define is”.

If I hurt your feelings I will not only walk it back I will trot it back. I also apologise to “many of [my] neighbors”

But, (there is always that but), I sure as hell won’t apologise to all. I’m am sure that you will have to agree.

Kym Kemp
Admin
6 months ago

Thank you, Ernie. I appreciate you saying that.

I don’t think you set out to insult people, but I also don’t think it’s unreasonable for folks to react to how words land, even when we hope the intent is different.

I know we certainly don’t agree on everything of course. And I’ll easily acknowledge that there are thieves among marijuana growers just as there are thieves among shop owners and police officers and preachers. Most importantly I’m glad we can disagree without writing each other off, and I value that we can still talk honestly and with respect.

Katie
Guest
Katie
6 months ago

Randy and Melinda Cox of Trusty distro owe our farm $70,000 from product they took in September of 2024. So don’t let them pretend that there moves to take in as much product as possible before closing one LLC and opening as another wasn’t completely calculated. They are theives with a plan. And the new DBA is Emberglow. And the new business and facility in Arcata, have been completely financed on the backs of small local farmers.

Farce
Guest
Farce
6 months ago
Reply to  Katie

Many scammers do their work in Arcata. They know that nobody in Arcata has the gumption or guts to physically show up and do anything about it. (Moderator- I am not encouraging vigilante action but simple direct non-violent action against thieves) Seems like Arcata with all those social justice warriors could get it together to protest locally and call out thieves…but no- Arcatans never do because that is too scary I guess?

Trinity Farmer
Guest
Trinity Farmer
5 months ago
Reply to  Katie

Well said. These people stole an opened new businesses. They belong in jail. They stole from me too FYI. I am looking at filing a criminal complaint against them. Maybe you want to join in?

Bo
Guest
Bo
4 months ago
Reply to  Trinity Farmer

They stole from our farm located in Santa Rosa as well. We are looking to get involved with this lawsuit as well. Call or email 707-697-7750. [email protected]

-Bo

Jeffersonian
Guest
Jeffersonian
6 months ago

Its is the devil’s weed.Many unsavory players.

Say what?
Guest
Say what?
6 months ago
Reply to  Jeffersonian

The only devils involved are the thieving carpet bagging distros that rip off the people who do the real work of growing. And of course, the cops. For many it is good medicine, anti-inflammatory, relaxing of pain from neuropathy, and now they find it improves cognition and staves off dementia. Seems to me it’s more GOD GIVEN. You live in a reefer madness fact-less fantasy that’s so outdated you made me LOL!

josh
Guest
josh
6 months ago
Reply to  Say what?

what % would you say are using it medicinally and what percent use it recreationally. Also smoking increases likelihood of stroke and it does major damage to epithelial cells

Ernie Branscomb
Guest
Ernie Branscomb
6 months ago
Reply to  josh

Every panacea Has it’s conundrum.

Farmer
Guest
Farmer
6 months ago

I entered the regulated market expecting not to get robbed, yet exploitation in the legal market happens at a higher incidence rate. The mandatory distribution requirement is straight fuckery and arbitrary. Farmers have the right to self‑distribute and provide onsite consumption without obstruction from NIMBY opposition, whose interference amounts to an unreasonable restraint on trade. If you are living in an AG zone expect a farmer to farm next to you! And if you chose to remain in the traditional market, stop crying about legal farmers, either accept the risk you took or endure the taxes and the liabilities like the rest of us.

Regulation should be narrowly confined to legitimate environmental protection (and by legitimate, I mean not simply revenue‑generating schemes like those imposed by the water boards), worker protections, and sanitation nothing more. Punitive rules have harmed both producers and consumers, undermining the very purpose of legalization

Equally troubling are the nepotism and blacklisting practices of certain lobbyists and trade groups, which are discriminatory, anti‑competitive, and fail to represent small farmers.

The B.O.S entertaining these groups or their own self-interests may rise to violations of antitrust principles and equal protection under the law.

I am heartened recent changes in local governance show recognition that excessive regulation and favoritism damage the broader community. It is time to restore equity, eliminate unjust requirements, and ensure small farmers are afforded the same rights and protections as any other market.

 Maybe it’ll cost the same as beans, but damn it, I’ve got the right to grow my beans on my own land without any more bullshit.

Farce
Guest
Farce
6 months ago
Reply to  Farmer

The legal framework is only state by state. No external distribution to other states is allowed by federal law. Permit people should have understood this from the very beginning. States should only allow enough permits to serve the consumption within their own state. Glass House in Santa Barbara produces enough weed to service the entire state of California. It only makes sense then that all other permits should be rescinded since allowing all these permitted farms to produce is a clear intention to sell product across state boundaries- in clear violation of federal law…..Is that what you mean by “quit crying” about permit pansies?
LOL! Of course I would rather see Glass House shut down and instead have 1000 small producers fill the quota. But this quota system is being talked about at the federal level by members of the Trump administration…I imagine they would -like the CA DEMs- prefer a couple corporate mega-farms owned by friends over all the little people. I think that’s where it is headed- slowly at first and then in a big push! That’s what this “legalization” was really all about from the Napster ripoff dude at the very beginning. Every permit pansy that jumped on board only validated their plan….I hope the ride was worth it

Last edited 6 months ago
Non-fiction
Guest
Non-fiction
6 months ago
Reply to  Farce

That’s how Florida does medical.
Only a small # of large bonded corps are permited to grow.
There’s zero allowance for homegrown.

Last edited 6 months ago
tym
Guest
tym
6 months ago
Reply to  Farmer

I am so going to quote that last sentence. Well written!

Bill Lutjens
Member
6 months ago

Embezzlement is illegal.
Contracts, lawyers, collateral, loans.
There is a legal system in place.

Redwood Dan
Guest
Redwood Dan
6 months ago

These guys kneecapped my operation last year. My attorney said that the amount of money wasn’t enough to sue them over. They kept promising payments on a given day, then when I would show up they would only have one or two thousand or nothing at all. I kept saying that I’m ok with delays, but I need communication. I had to send my trimmers home 3 days into the job because I didn’t get paid. I wouldn’t have brought them in if I hadn’t been told I was getting a payment. I couldn’t buy clones at the beginning on the summer and had to push back then ultimately cancel my order because I didn’t get paid. It was August by the time I was able to make clones from my own stock and I could only plant 2/3 of my square footage. I didn’t get any clones on the front because I’m not taking the risk of digging myself in any deeper.
At a certain point they just quit answering my calls and texts. I could see on Randy’s face that their company was swirling the drain. Which is fine, but ripping off farms is not.
After several months of no payment I changed my tone and said you need to pay me my fucking money. I don’t give a shit if you need to call your mom and dad or cousins to borrow some, take out a second mortgage, sell your own farm, I don’t give a shit you need to find some somewhere. I’ll be there on Monday and your need to have my fucking money. Melinda said that my foul language wasn’t appropriate. I said fuck you, I’ll see you on Monday. They had half my money on Monday and the other half after I hounded them for another 5 weeks.

Bill Lutjens
Member
6 months ago
Reply to  Redwood Dan

What did the auditors say?
and you call yourself a business person?

Mendocino Jury Finds Lake County Woman Guilty of Embezzling Rental Car
https://kymkemp.com/2025/12/05/mendocino-jury-finds-lake-county-woman-guilty-of-embezzling-rental-car/

Dusty Spritzwater
Guest
Dusty Spritzwater
6 months ago
Reply to  Bill Lutjens

You assume your auditors got to weigh in on designing the State’s silly distribution scheme.
Dude, audits are the least of the problem! An auditor would tell most growers they’re doing a bunch of sideways busy work on excessive regulation for their 1/4 acre Sunday Garden, and paying too much for it… Before they get ripped off by a licensed “distributor”.

Farce
Guest
Farce
6 months ago
Reply to  Redwood Dan

Squeaky wheel gets the grease…Very old story.
Clones are easy! Never buy those, c’mon!
Good for you on not sticking it down the line to the poor trimmers! That is ethics and it’s nice to hear…saw so many jerks hanging their poorest workers out to dry

Redwood Dan
Guest
Redwood Dan
6 months ago
Reply to  Farce

I usually do make my own clones, but I pulled a rookie move and fried my moms in the late spring. Too much N and simultaneously put them out in direct sunlight without any shade cloth. I was going to put some up, but it was overcast the morning I moved them out so I wasn’t going to worry about it the first day. I went into town and was there longer than I thought I would be, and the clouds burned off. By the time I got back, the damage was already done.

Farce
Guest
Farce
6 months ago
Reply to  Redwood Dan

Dang! I can see that happening. I wish you better this year. Clones are easy- unless you don’t have any moms! I have a good friend who does a great business with them every year. It really helps her out these days. She checks out what the permit nurseries charge for their clones and then she sells hers at half that price. Perfectly clean. And now since we all know METRC is bullshit people buy her inventory out pretty quick. Vive la re’sistance!

Shortjohnson
Guest
Shortjohnson
6 months ago
Reply to  Redwood Dan

Good for u man. Probably a rare instance of someone getting squared up in this industry.

Guest
Guest
Guest
6 months ago

You take a criminal market, turn it legal and then wonder why the players all act like criminals? I wish people would stop closing their eyes to the obvious.

Guest
Guest
Guest
6 months ago
Reply to  Guest

Their Intent I think was to actually help the farmers. Growing will always be a sustainable opportunity. Unfortunately some farmers are acting like criminals themselves making death threats to failing business owners . The entire set-up drafted by lawmakers never intended to help anyone in the industry. It is a unfair system, perhaps designed to keep farmers in the black market so they can eventually jail you, and then confiscate your land and farm. The helicopters and feds are constantly in the air in Humboldt.

Shortjohnson
Guest
Shortjohnson
6 months ago

Keep it trusty. Haha. What a name. Like Honest John’s Snake Oils. Sounds like the only legitimate— Dog and Pony Show. I feel for these growers but why does no one pay upfront? Cuffing it to every distributor in the state makes for sketchy income. Don’t put all your eggs into into one basket now, fellas.

Redwood Dan
Guest
Redwood Dan
6 months ago

Higher Visions-Adam Lustig
Budville Co-Op – Steve Duce and Ali Miyzaan-Fernnadze
Good Life Distribution- Cody Langley
These companies owe us 10s of thousands each.
Trusty eventually paid, but jerked me around the whole time.
SISU “lost” half of our trim one year and didn’t want to pay for it, but I eventually got them to.
you gotta be really careful who you work with and never put all of your eggs in one basket.

Meh
Guest
Meh
6 months ago

Distros have been burning farmers for years. Why would anyone trust Trusty or anyone else with that much product?
Its a shitty system that demands fronts to someone who ya may not know where they sleep in order to play by the f’d up rules

Eyes Open
Guest
Eyes Open
6 months ago

That’s his MO