South Dakota Lawmakers Decline To Act On 'Pop Up' Weed Clinics, Former MN Political Operative Sued For MMJ Fraud

Two measures seeking to strike down South Dakota's 'pop-up clinics' for medicinal cannabis were killed this week by members of the state Senate committee, reported mykxlg.

Even though both GOP-led HB 1172 and 1129 made their way through the House of Representatives earlier this month, they were rejected on 4-1 votes on Wednesday by the Senate Health and Human Services Committee members.

Sponsored by Rep. Fred Deutsch, the two bills would have banned ads for medical cannabis that would guarantee a card and telehealth appointments or financial incentives to make an appointment. Those violating the law would not be allowed to certify medical cannabis cards for up to six months.

"Pop-up clinics," Deutsch told House members earlier this month, "are a creation of the marijuana industry. They weren't part of the initiated measure. They're not currently part of the law. Doctors are hired by pop-up clinics and, in some cases, flown into South Dakota."

While Deutsch's measures aimed to regulate further the state's medical marijuana, another bill from Sen. Erin Tobin, R-Winner, is seeking to expand it.

Introduced in January, Senate Bill 1, which advanced through the Senate, is now pending a House committee hearing which is scheduled for Tuesday, reported KEVN-TV Black Hills FOX.

If approved, the measure would amend the law to include additional debilitating medical conditions for medical cannabis use, such as diagnosis of cancer, seizure disorders and post-traumatic stress disorder (PTSD), to name a few.

Former DNC and MN Political Operative Sued for Frauding Two MMJ Companies And Their Investors

Meanwhile, on the business side, two medical cannabis companies operating in the Mount Rushmore State filed a lawsuit against Will Hailer - a former Minnesota political operative who worked for the Democratic National Committee in Hennepin County - in December for allegedly defrauding them of almost $1.7 million.

According to Star Tribune, Dakota Natural Growers and 605 Cannabis and their investors sued Hailer and the three funds managers - eSt Ventures LLC, Badlands Fund GP LLC and Badlands Ventures LLC – for seeking a total of $3.5 million in investments with the "intention of stealing and/or misappropriating most of the money."

Hailer allegedly said to investors in early 2022, he would raise $10 million to invest equally in both businesses in return.

Over the course of a few months, "the defendants never secured any other investor, for any amount," according to the lawsuit, while Hailer and Badlands subsequently returning only $1.8 million of the total sum to the investors.

Even though the parties reached a settlement agreement in late 2022, with Badlands Ventures agreeing to pay roughly $1 million to Dakota Natural Growers and approximately $600,000 to 605 Cannabis, no money has been sent. In addition, Hailer has filed to dismiss the case, with the hearing expected in April.

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Photo: Courtesy of succo, mrkukuruznik5 by Pixabay