Armored car company stopped for hauling legal weed funds across Kansas settles federal suit – Kansas Reflector

TOPEKA — The U.S. Division of Justice agreed Wednesday to return all money seized from an armored automotive firm utilized by authorized marijuana dispensaries throughout a number of visitors stops in California final 12 months.

The California seizures occurred primarily based on what authorities realized in Kansas throughout a Might visitors cease of an Empyreal Logistics automotive. Conversations between state and federal regulation enforcement companies stemming from this cease resulted in a sequence of occasions wherein Kansas and California officers seized greater than $1.2 million.

Quickly after, the corporate filed a federal lawsuit detailing how a sheriff’s deputy in Dickinson County stopped certainly one of their autos transporting money from licensed marijuana dispensaries to banks and credit score unions, seizing greater than $165,000 on Interstate 70. In response, the U.S. Legal professional’s Workplace in Kansas filed a civil forfeiture motion towards Empyreal, asserting that the money was related to gross sales in violation of the Managed Substances Act.

A agency representing Empyreal introduced Wednesday the DOJ had agreed to return all funds seized by the San Bernardino County Sheriff —roughly $1.1 million — in alternate for dropping the lawsuit.  Nonetheless, in accordance with the agency representing Empyreal within the federal go well with, the settlement doesn’t handle the San Bernardino sheriff or the case in Kansas.

“Empyreal has at all times considered ourselves as a associate to monetary establishments and regulation enforcement,” stated Empyreal CEO Deirdra O’Gorman. “Our service will increase transparency and makes communities safer. Empyreal is dedicated to persevering with our mission of working with monetary establishments and their state-legal enterprise clients.”

Empyreal operates in 28 states and offers money logistics options, together with safe supply between companies equivalent to state-licensed hashish operations and monetary establishments. The corporate by no means transports hashish merchandise.

The lawsuit alleged Dickinson County Sheriff’s Deputy Kalen Robinson pulled over a transit van heading east on the interstate as a result of the license plate tag was partially obscured. After a dialog with a Drug Enforcement Administration agent, Robinson advised the Empyreal driver she was free to go.

Because the van headed again to Colorado the following day after selecting up money from Missouri dispensaries, Robinson pulled over the van. In the course of the three-hour cease, the sheriff’s workplace seized 5 baggage of money that totaled $165,855, in accordance with the offense report filed in reference to the case.

Empyreal stated no visitors citations have been issued to their drivers throughout any of the 5 stops talked about in its criticism. Nonetheless, within the lawsuit, the corporate stated it has been pressured to cease transporting money via Kansas due to the seizures.

Their attorneys argued the cease occurring in Kansas was of no consequence, even when the state has not legalized any type of marijuana use, as a result of it harms legally working hashish companies.

“Empyreal was working legally beneath California regulation, however with present federal civil forfeiture legal guidelines, even compliant companies might be focused,” stated IJ Senior Legal professional Dan Alban of the now settled federal case. “Returning this cash is the best factor to do.”

Federal regulation prohibits the U.S. Division of Justice from spending cash to forestall states from “implementing their very own state legal guidelines that authorize the use, distribution, possession or cultivation of medical marijuana.”

The prohibition, generally known as the Rohrabacher–Farr Modification, turned regulation in 2014 and should be renewed yearly. It stays in impact.