Colorado Pot Store Owner Under Indictment Sued State Regulators

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 any more 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.

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