Cynara Velazquez became familiar with Michael Halow over the summer.
Velazquez is an organizer with the California nonprofit called Cannabis Education Project that San Diego County hired in March to implement its social-equity cannabis program. The group largely helps people who were imprisoned for cannabis apply for a license to sell or grow marijuana.
That’s how her team met Halow.
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At one of the county’s informational sessions, organizers saw Halow pass out business cards, she said, that led to an online form for potential applicants and looked identical to the application form used by the county.
Halow or his brother Brandon would call the applicants, Velazquez later learned, and offer to help them navigate the system in exchange for 49% of the potential company’s profits.
“We called every single applicant,” to warn them, Velazquez said in an interview with The Independent. But a few applicants, she said, had already “fallen for the scheme.”
Then, she saw an article in The Independent last month about a Black disabled veteran who filled out an inquiry form to get a microbusiness license in Missouri and ended up signing a contract with Halow. She claims she didn’t realize the contract aimed to take full control and profits of the dispensary.
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“We said, ‘Oh my God, these guys are even more insidious than we thought,’” Velazquez said.
Since Missouri voters approved recreational marijuana in 2022, state regulators have used a lottery system to award 96 microbusiness licenses — a program sold to voters as a way to help victims of the War on Drugs get a toehold in the burgeoning cannabis industry.
But of the 96 licenses issued so far, 41 have been either revoked or are currently at risk of being revoked. Another three are under investigation.
A majority of those 44 licenses are connected to groups or individuals who flooded the lottery by recruiting people to submit applications and then offering them contracts that limited their profit and control of the business.
Halow, for example, is connected to more than 700 of the 3,600 applications submitted for Missouri’s lottery since the program began. He’s associated with 22 awarded licenses, but every one has been either revoked or was denied certification earlier this month by the Division of Cannabis Regulation.
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In all those October notices of pending revocation connected to Halow, the division stated the licensee entered into an agreement that would result in someone besides the eligible applicant “becoming an owner of this and 15 other microbusiness licenses.”
In total, groups flooding the lottery have made up about 1,400 of the 3,600 applications submitted since the program began, meaning they’ve represented about 40% of what’s gone into the lottery and come away with nearly 40% of the licenses.
NAACP leaders in Missouri are calling it a “predatory attack” on the state’s social-equity cannabis program, which voters intended to allow marginalized or under-represented individuals to participate in the legal marijuana market.
“If a Black license owner is not making the most money off the operation, then they’re being robbed of the opportunity to create generational wealth,” said Adolphus Pruitt, president of the St. Louis City NAACP. “That’s what the microbusiness program is about. And that’s what’s being robbed.”
Division of Cannabis Regulation Director Amy Moore said her team shares the concern about predatory practices, and that’s why the division previously issued warnings to applicants.
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“We put out quite a bit of education and warnings about predatory practices,” she said, “because we know that is happening, and it’s not just happening here in Missouri.”
By the time applications get to state regulators “a lot of agreements have been signed,” Moore said. “Financial transactions have happened. So, I really appreciate that there are other voices also speaking up, so that some of that damage perhaps could be prevented and mitigated before we get to applications being submitted to a government agency.”
In an email to The Independent, Halow denied that his actions are predatory and says he’s transparent with applicants he’s worked with in “a number of states.”
“Applicants engage me for the same reason people hire tax preparers,” Halow said. “Navigating through government paperwork can be a daunting task in any situation. I am very proud of the resources and expertise I provide across the country…”
Halow said the intake form on his website for San Diego was a “marketing tool,” and “it was not meant to mimic the county’s official process.”
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“As for the criticism regarding ‘flooding the lottery,’ it’s important to recognize that more applicants is actually a sign of greater participation in a government program,” he said, “which is a positive outcome.”
By law, the state must award a total of 144 licenses to disadvantaged business owners. But there’s not a definitive deadline to meet that goal, Moore said.
Pruitt believes the division needs to re-evaluate the rules around the application process to “fix the problem,” even if it means a delay in issuing the next round of licenses. A short pause, he said, could also give the NAACP and other community leaders an opportunity to try to create pathways to business capital so business owners aren’t as vulnerable to predatory practices.
“It’s a very simple question with a simple answer for me,” Pruitt said. “Or would you rather continue to try to catch everybody who’s speeding?”
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More than half not certified
The state issued its first round of 48 microbusiness licenses last year.
These applicants were picked out of a lottery of 1,600 submissions, and then the division verified they met the basic qualifications — which includes having a low income, a nonviolent marijuana charge on their record, being a disabled veteran or living in a low-income ZIP code.
But getting the license is actually just the beginning of the verification process.
The licensees must then pass through a rigorous 60-day investigation into all financial and operating agreements to make sure the license will continue to be majority owned and operated by an eligible person, as the state constitution requires.
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After the investigations last year, the division ended up issuing 11 notices of pending revocation.
The licensees had a few months to respond to the division’s concerns, but ultimately all six licenses connected to Halow were revoked — along with two connected to a Michigan-based group — because they couldn’t prove the business would be run by an eligible person.
The revocations were the division’s attempt to prevent what some legal experts have called “fronts,” or arrangements where the profits and ownership weren’t going to people that regulators had certified were eligible.
“Most people’s reactions to our revocations was that it was a very strong move and was very clear why we did it,” Moore said. “So it seems that that did not have as much of an impact as we hoped.”
In July, the division awarded another 57 microbusiness licenses. But after the 60-day investigation that ended earlier this month, regulators sent out 32 notices of pending revocation.
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Half of the 32 pending revocation letters went to licensees connected to Halow.
But Halow’s strategy is not unique. Neither are the results.
Last year, The Independent revealed a Michigan-based company called Cana Zoned was recruiting people on Craigslist to enter Missouri’s social equity license lottery using contracts forcing them to eventually relinquish all control — and profits.
The company landed two dispensary licenses last October and both were revoked earlier this year, though the company is appealing that decision.
Despite those revocations, Canna Zoned was awarded another license through the July lottery, and once again received a notice of pending revocation this month.
John Payne also received six notices of pending revocation this month for licenses where he serves as the designated contact. Payne led the campaign to legalize recreational cannabis in 2022 and is connected to nearly 500 applications and 12 licenses since the program’s inception.
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But Payne has come under fire in recent months after The Independent revealed that for some applicants he’d recruited eligible Missourians and had them sign a 47-page contract that would ultimately give him and his partners 90.1% of profits and majority control of the business.
Despite only owning a fraction of the business, under state law the applicants would bear the lion’s share of the regulatory scrutiny. If they ever want to walk away from the deal, they would be required to pay a nearly $1 million fee.
In addition to the six notices of pending revocation this month, three current licenses connected to Payne are under investigation by state regulators. According to case documents for these threecases, the division questioned whether the eligible person who submitted the application will continue to be the majority owner and operator of the business.
“It’s certainly not in the best interest of individuals or in the interest of the program or the implementation of the law to be issuing licenses every round and doing notices of pending revocation for more than half,” Moore said. “So yes, we are considering what changes we need to make.”
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Notices tripled from last year
Roz McCarthy, CEO and founder of the national organization Minorities for Medical Marijuana, said it’s troubling that the number of pending revocation notices the division issued has tripled from the first round of licenses a year ago to the second round this year.
The division or a legislative committee, she said, should hold a public meeting to get feedback from residents and social-equity experts about how to address the issue.
Missouri regulators are looking into several solutions, Moore told The Independent. However, many of them would require a change in the state’s administrative rules –- and that would require a public hearing before a legislative committee for approval. It would also delay a third round of licenses, she said.
Having applicants take an online training course that addresses predatory practices is among the possible new requirements, Moore said.
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“Those kinds of front-end educational efforts, they’re very good for individuals who are interested in them,” Moore said. “It just probably would have to be one factor of a bundle of actions.”
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Velazquez said San Diego County will now likely require eligible individuals to submit the application themselves, and not through a consultant in order to curtain predatory practices.
Velazquez says she doesn’t want California to follow in the footsteps of Arizona’s social equity program — where Halow’s actions have also been criticized. Arizona Senate Majority Leader Sonny Borrelli, a Republican, spoke about Halow and other investors’ impact on the state’s program during a legislative committee hearing in February.
“WenowhavehereinArizona,” he said,“asituationwhere24ofthe26ofthesesocialequitylicensesarenowfullycontrolledbycompaniesorpeoplewhodonotbelonginthesespecialgroupstogetthislicense.”
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Borrelli proposed legislation to return these licenses to their original owners, alleging private investors and cannabis corporations used predatory tactics to seize control of them. It passed the Arizona Senate but didn’t make to a House vote.
Social-equity cannabis programs nationwide, McCarthy said, largely aim to provide business opportunities for people who reside in highly-policed areas where cannabis has been criminalized.
A contract where an applicant only gets 9% or no profits of the business is “so unfair,” she said.
“People will take our community’s pain and then turn it around and create a business around it,” McCarthy said. “They do it under the guise of equity, but it’s a lie.”
SPRINGFIELD, Mo. (AP) — Mark Gronowski threw for 258 yards and two touchdowns and Amar Johnson ran for two touchdowns and South Dakota State overwhelmed Missouri State 45-9 on Saturday and claimed a share of the Missouri Valley Football Conference regular-season title.
With the win and North Dakota State’s loss to South Dakota, the Bison, Coyotes and Jackrabbits (10-2, 7-1) all secure a three-way tie for the Missouri Valley Football Conference regular-season title.
Missouri State (8-4, 6-2) entered averaging 37 points per game.
It was Missouri State’s final game as a Missouri Valley Football Conference member before joining Conference USA and the FBS ranks in 2025. Missouri State kicks off next season on Aug. 30 when it travels to Southern Cal.
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STARKVILLE — Mississippi State football has one last chance to win a home SEC game today.
The Bulldogs (2-8, 0-6 SEC) are hosting Missouri (7-3, 3-3) at Davis Wade Stadium on Saturday (3:15 p.m., SEC Network). Their only two wins have been in nonconference play.
The Tigers have been in and out of the national polls but are unranked in the US LBM Coaches Poll this week after losing at South Carolina.
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Follow along here for live score updates.
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Mississippi State vs Missouri score updates
Davon Booth scampered for a 43-yard rushing touchdown, putting him over 100 yards for the second game in a row and keeping MSU within striking distance with 5:31 remaining in the third quarter.
The Tigers controlled possession for 8 minutes, 46 seconds before kicking a field goal.
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Kyle Ferrie chipped in a 26-yard field goal with 30 seconds remaining in the half after an MSU touchdown was erased because of a holding penalty.
The Tigers have scored three touchdowns in three straight drives, this time Marcus Carroll’s second touchdown of the first half.
Brady Cook connected with Luther Burden III for a 28-yard touchdown catch with 9:58 remaining in the second quarter.
After the Tigers committed 30 yards worth of penalties on one play, Michael Van Buren Jr. found Jordan Mosely for an 11-yard touchdown with 20 seconds left in the first quarter.
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Marcus Carroll scored a 2-yard touchdown with 2:49 remaining in the first quarter.
Michael Van Buren Jr. fumbled and Mizzou returned it 70 yards for a touchdown with 6:33 to play in the first quarter.
Davon Booth broke a 33-yard run before Kyle Ferrie connected on a 38-yard field goal with 11:43 remaining in the first quarter.
Mississippi State vs Mizzou time today
Date: Saturday, Nov. 23
Time: 3:15 p.m.
Location: Davis Wade Stadium
What channel is Mississippi State vs Missouri game on today?
TV channel: SEC Network
Streaming: ESPN+ (subscribe today)
Radio: MSU Sports Network and Sirius XM channel 374
Mississippi State versus Missouri will be broadcast on SEC Network. Taylor Zarzour will be on the call with analyst Matt Stinchcomb and sideline reporter Alyssa Lang. Streaming is available on ESPN+.
Mississippi State vs Mizzou history
Series record: Tied 2-2
Mississippi State’s last win: 2020 (51-32)
Missouri’s last win: 1984 (47-30)
Mississippi State vs Missouri predictions
Missouri 37, Mississippi State 20: The Bulldogs are allowing 41 points per game in SEC play, and it’s difficult to see Missouri not having the same level of success. Expect big days from Luther Burden III and/or Theo Wease Jr., plus running back Nate Noel as MSU loses another game by double digits.
Mississippi State vs Mizzou betting odds
Game lines and odds from BetMGM as of Saturday:
Spread: Missouri -9
Over/under: 57.5
Moneyline: Missouri -330/Mississippi State +285
Mississippi State vs Missouri injury updates
Mississippi State reported no new injuries this week, but will be without wide receiver Mario Craver due to a suspension. Missouri starting quarterback Brady Cook was probable but removed from the report on Friday.
Mississippi State vs Mizzou weather update
According to AccuWeather, it will be 61 degrees at kickoff with 6 mph winds and a 0% chance of rain.
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Mississippi State football 2024 schedule
Aug. 31: vs. Eastern Kentucky (56-7, W)
Sept. 7: at Arizona State (30-23, L)
Sept. 14: vs. Toledo (41-17, L)
Sept. 21: vs. Florida (45-28, L)
Sept. 28: at Texas (35-13, L)
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Oct. 12: at Georgia (41-31, L)
Oct. 19: vs. Texas A&M (34-24, L)
Oct. 26: vs. Arkansas (58-25, L)
Nov. 2: vs. UMass (45-20, W)
Nov. 9: at Tennessee (33-14, L)
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Nov. 23: vs. Missouri
Nov. 29: at Ole Miss
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Missouri football 2024 schedule
Aug. 29: vs. Murray State (51-0, W)
Sept. 7: vs. Buffalo (38-0, W)
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Sept. 14: vs. Boston College (27-21, W)
Sept. 21: vs. Vanderbilt (30-27, W)
Oct. 5: at Texas A&M (41-10, L)
Oct. 12: at UMass (45-3, W)
Oct. 19: vs. Auburn (21-17, W)
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Oct. 26: at Alabama (34-0, L)
Nov. 9: vs. Oklahoma (30-23, W)
Nov. 16: at South Carolina (34-30, L)
Nov. 23: at Mississippi State
Nov. 30: vs. Arkansas
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Mississippi State football news
Sam Sklar is the Mississippi State beat reporter for the Clarion Ledger. Email him at ssklar@gannett.com and follow him on X @sklarsam_.
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Former Utah Tech University President Richard “Biff” Williams will keep his new job in Missouri, which he stepped into about six months after he resigned here while under investigation for misconduct.
The governing board at Missouri State University voted unanimously Friday during a closed session to support Williams and continue to have him lead the school despite the allegations that have drawn widespread attention.
The decision comes, too, after the Faculty Senate at Missouri State took a vote of no-confidence in Williams’ leadership the day before. The school’s Board of Governors said in a statement released to The Salt Lake Tribune that it considered that faculty resolution before deciding to stand by Williams.
“This decision was made after thoughtful consideration of the viewpoints heard from all constituencies,” the board said. “Missouri State University has very high expectations for our leaders personally and professionally, and President Williams is working with the board on actions that he will take as part of his commitment to strengthening relationships across our campus community.”
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The school did not provide details on what those actions from Williams will include.
Williams has already apologized to the Missouri State community for the attention the allegations from Utah have brought there. But he has not apologized to the Utah Tech campus.
The Faculty Senate at Utah Tech also passed a no-confidence resolution Thursday, noting that omission and saying that members are concerned with how school leaders responded to the accusations against Williams.
Those first came to light in a lawsuit filed earlier this month. Three employees — Utah Tech attorneys Becky Broadbent and Jared Rasband, as well as Title IX Director Hazel Sainsbury — said in their filing that the university has a toxic culture that stems from the top and was often encouraged by Williams. Their efforts to address it, they say, were ignored or mocked.
It culminated in November 2023 when Williams gave what he’s since acknowledged he meant as a gag gift to a member of his Cabinet after the man had surgery. It was vegetables made to look like male genitalia, alongside a note wishing the man a speedy recovery.
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Only Williams didn’t sign the note from himself. Instead, he used the names of Broadbent, Rasband and Sainsbury. When they tried to report that, their lawsuit says, they faced further retaliation and harassment.
Meanwhile, Williams quietly stepped down two months after they reported, saying he planned “to pursue other professional opportunities” after a decade at the helm of Utah Tech. He continued to receive pay from the school for six months until he started in Missouri. He was inaugurated there last month.
Williams told students, according to reporting by the Springfield Daily Citizen, after the lawsuit came out that the board at Missouri did not know about the allegations prior to hiring them because the Title IX process is private.
However, Williams says he personally told the board chair shortly after he was selected as the next president there. He has also denied some of the allegations included in the lawsuit.