Colorado-based Cannabis Dispensary Licenses Revoked in Denver
On Wednesday, July 5, the popular cannabis retail chain known as Sweet Leaf had its licensed revoked within the city of Denver, Colorado. Sweet Leaf has undergone much scrutiny after it was first accused of allowing “looping” in its stores (which illegally allows customers to purchase more cannabis than is allowed daily). At its peak, Sweet Leaf held 26 medical and recreational cannabis licenses in Denver.
The Denver Department of Excise Licenses Executive Director, Ashley Kilroy, finally pulled the plug last week. This was not a surprise decision however, as revoking the licenses was a suggestion that dated back to April. “Enforcing rules when violations occur is an essential part of Denver’s successful regulation of one of the largest legalized marijuana markets in the world. After reviewing the overwhelming evidence, it’s clear the Hearing Officer made the correct decision in recommending the revocation of these licenses,” Kilroy stated. “Sweet Leaf’s illegal actions undermine the entire regulatory framework created by Amendment 64, the General Assembly and Denver City Council. This decision supports the will of the voters for a regulated legal marijuana market, safeguards the legal marijuana industry, and protects the safety and welfare of the public.”
The investigation of Sweet Leaf began in late-2016 and by the time it concluded in December 2017, 18 employees were arrested (charges were later dropped against them). Westword reports that the investigation found over 1,000 examples of looping in Sweet Leaf’s medical cannabis dispensaries which totaled to $4 million.
Denver’s legislation limits a customer to purchase one ounce of cannabis for recreational customers, and two ounces for medical patients, per day. However, Sweet Leaf’s legal team claimed that the regulations were not clear at the time, arguing that that particular limitation only apply on a “per transaction” basis, instead of daily. In May 2017, the Marijuana Enforcement Division released a statement clarifying this fact, noting that it was illegal to sell more than the one or two ounces to a customer.
Sweet Leaf still has three dispensaries open outside of Denver: One in Aurora, Federal Heights and Thornton.
