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Rory Savatgy

Colorado’s Sweet Leaf Marijuana Centers could lose its 26 retail, cultivation, and manufacturing licenses after a municipal hearing officer ruled that the company pocketed millions of dollars in a “looping” scheme that allowed customers to purchase the maximum amount of cannabis multiple times a day and sell it in the illicit market, the Denver Post reports.

Sweet Leaf had their licenses suspended last December and 12 people were arrested following the yearlong investigation by local law enforcement.

At least half of the loopers were from out-of-state. Hearing Officer Suzanne Fasing found that people from Arkansas, Nebraska, New Mexico, and Texas had participated in the scheme; some of those individuals have already been convicted.

Sweet Leaf owners reportedly encouraged and directed the practice. Investigators discovered conversations on Slack promoting the scheme.

“Looping is going to be going on until the new year most likely. Please talk it up with (extended plant-count) patients. We need med sales up!” – Sweet Leaf owners in a Slack conversation, via the Post

Attorneys for Sweet Leaf argue that the law prior to Jan. 1 did not prohibit multiple sales of more than 1 ounce per day. The state changed the rules on Jan. 1 to codify that language.

Denver’s director of marijuana policy will have the final say on the case after a 10-day period for objections and a five-day period for responses. That decision could come in a few weeks.

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