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DEA Seizes $1.7 Million in Montana Marijuana profits - Sept 29, 2012

Thursday, December 06, 2012 8:14 AM | Anonymous

The DEA shows no sign of ignoring state marijuana sales.  Little more than a month ago, a federal jury awarded $1.7 million to the government.   Importantly, the federal judge agreed that federal forfeiture law does not allow reduction for start up costs or operational costs.  The growers were forced to pay the amount they took in sales--meaning they lost their entire investment and all profits.  

The full article on the case is here: Missoulan Article  

The ruling points out the precarious position of manufacturers and the State itself.  Nothing forbids the DEA from simply waiting for a year or more, then seizing the entire income from both.  Just as in Montana, the growers and distributers would be bankrupt.  The bigger targer is, of course, the State.  If the State actually collects millions in taxes while violating federal law--that is a pretty easy target.   Note that seizure would take all taxes collected from marijuana--leaving the state with big bills for its new marijuana regulatory agency. 

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