Pubdate: Sun, 15 Jun 2014
Source: Pantagraph, The  (Bloomington, IL)
Copyright: 2014 Pantagraph Publishing Co.
Contact:  http://www.pantagraph.com/
Details: http://www.mapinc.org/media/643
Author: Kurt Erickson

INSIDERS JOSTLING FOR MEDICAL POT BUSINESS

SPRINGFIELD -- In a sign Illinois' new medical marijuana law could be 
a gold mine for investors, a politically connected Glenview attorney 
is hoarding pot-related company names in hopes of cashing in if the 
business takes off.

Sam Borek, a former college roommate of the lawmaker who sponsored 
the state's new law, says he reserved the company names to either 
sell them to others, or to start his own companies.

Included in his list of at least three dozen potential corporations 
and limited liability companies are Illinois Medical Marijuana Sales 
Inc., Illinois Cannabis Realty Inc. and Cannabis Medical Centers of 
Illinois Inc.

Just as political insiders cashed in when Illinois legalized casino 
gambling in 1990, Borek's maneuvers offer a behind-the-scenes look at 
the jockeying underway to grab a piece of the newly legalized medical 
pot business.

Take David Rosen of Chicago, for example. He helped get Gov. Pat 
Quinn elected in 2010, serving as the Democrat's chief fundraiser. 
Rosen's also raised campaign cash for Hillary Clinton and Al Gore.

In April, Rosen filed paperwork to open a medical marijuana 
establishment in Nevada. In a sign he wants to be a player here too, 
the company name -- Waveseer -- also has been registered in Illinois.

Rosen did not return multiple telephone messages left at his Chicago 
office. But Nevada records show a number of Illinoisans who've 
invested money in Waveseer's venture in Nevada venture, including:

- - River Forest attorney Kevin Conway, who has contributed more than 
$7,300 to Quinn in the past year;

- - Marcia Rayman of Big Rock, who gave Quinn $5,000 in September. Her 
husband, businessman Steven Rayman, has given Quinn $40,000 over the 
past five years;

- - A trust controlled by retired businessman Howard Gottlieb of 
Evanston, who gave Quinn $40,000 during the 2010 election cycle; and

- - Francesca Cooper, the wife of wealthy Edwardsville attorney Jeff 
Cooper, who helped bankroll a cancer treatment center at the Southern 
Illinois University School of Medicine in Springfield.

Although the actual implementation of Illinois' new medical marijuana 
law is still months away, various companies are in talks with 
communities to try and win the right to grow and dispense the drug.

Under the rules being written to regulate medical marijuana, 
companies applying to grow and sell it must meet a lengthy list of 
guidelines, including showing they have the capital to support one of 
the enterprises.

The applications will then be scored, with the highest score being 
awarded a franchise. There will be 22 marijuana growing centers and 
60 pot dispensaries in the state.

In McLean County, an unnamed company approached LeRoy officials last 
month about starting a growing facility in the town. Similar 
entreaties have been made in Tazewell, St. Clair, Warren and Jersey counties.

Some firms have hired lobbyists to help them move forward in becoming 
one of the limited number of growing facilities and dispensaries. 
Jack Lavin, who was Quinn's chief of staff, is lobbying on behalf of 
a medical marijuana business owned by Effingham attorney Matt 
Hortenstine and Springfield lobbyist Christopher Stone.

Salveo Health & Wellness, a company pursuing a growing operation in 
Warren County, has enlisted Mark Boozell, former Gov. Jim Edgar's 
chief of staff, as its lobbyist.

Borek has political connections, too. In 2012, the Chicago Tribune 
reported he was a college roommate of state Rep. Lou Lang, D-Skokie, 
who sponsored the landmark medical marijuana legislation. Records 
show Borek has given Lang's campaign fund $15,000 over the past 20 years.

Each of the company names he's registered typically contains some 
reference to the drug that eventually will be made available to 
Illinoisans who have certain medical conditions.

Based on standard state filing fees, Borek has spent at least $2,300 
to reserve the various names for up to 90 days. If he wants to extend 
the time period, he'd have to pay a similar amount for all of the 
possible companies.

But just as there are no guarantees any of the entities will win the 
right to run a dispensary or growing operation, there are other 
pitfalls for investors.

In an interview, Borek said he recently tried to open checking 
accounts but was turned down because the banks are worried about 
being penalized under federal law if they deal with marijuana growers 
and sellers.

"We've got some checks to invest from investors and we can't deposit 
them," he said.

Under one scenario, he said he potentially could remove the words 
"marijuana" or "cannabis" from his proposed companies to appease the banks.

"We're looking at some names now. We've got some good alternatives," said Borek.
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MAP posted-by: Jay Bergstrom