Pubdate: Sat, 05 Apr 2014
Source: Denver Post (CO)
Copyright: 2014 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: John Ingold

POT DISPENSARY OWNER SUES STATE OVER CLOSED SHOP

An Enforcement Agency Issued Notices of Denial to the Man, WHO Is
Under Criminal Indictment.

A Colorado medical marijuana dispensary owner who is under criminal
indictment sued state regulators Friday for closing down his shops.

The Colorado Marijuana Enforcement Division issued notices of denial
this week to two Denver medical marijuana dispensaries, Higher Health
Medical and Jane Medical, according to exhibits included with the
lawsuit. The notices list a number of alleged violations, including
growing more plants than allowed, not having adequate security camera
coverage, and failing to ensure that the supply of marijuana from the
business' growing facilities went only to the shops.

The notices also allude to owner Conley Hoskins' legal trouble. "Your
criminal history indicates that you are not a person of good moral
character and you therefore cannot hold a license," the notices state.

But that, according to the lawsuit, is the opposite of what state
regulators told Hoskins' lawyer last year after he was indicted on
charges accusing him of using his marijuana businesses to run an
investment scam and to illegally distribute pot. The lawsuit claims
that Hoskins' lawyer was told regulators "would not shut down his
facility unless and until there was a criminal conviction."

On Friday, according to the lawsuit, division agents "physically shut
down the facilities and ordered the facilities not to conduct anymore
business." According to the notices of denial, the stores' inventory
has been placed on an "administrative hold," meaning the stores can
continue growing and processing marijuana but cannot sell or transfer
it.

The lawsuit contends that Hoskins should have been granted a hearing
before the closure and that he should be allowed to keep his
businesses open while he requests one.

Higher Health Medical and Jane Medical were two of several medical
marijuana businesses considered to be "operational pending," meaning
they had not received an approved license but were allowed to do
business while their application was being reviewed.

The criminal case against Hoskins, filed last year, is still pending.
In a related investigation, federal prosecutors have moved to seize
more than $850,000.

Hoskins has denied the allegations.  
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