Since Missouri approved recreational-use cannabis, the state has awarded 96 microbusiness licenses to help individuals impacted by the War on Drugs become industry stakeholders.
Of those 96 licenses, 44 are connected to bad actors who allegedly recruit applicants to be the “face” of the business.
Among the worst of the bunch, according to the Missouri Independent, appear to be brothers Michael and Brandon Halow.
For their help securing a license, the brothers receive 49% of the company's profits.
Of the 3,600 lottery applications submitted to Missouri, the brothers are tied to more than 700.
From those 700 applications, 22 applicants won licenses, but the state's Division of Cannabis Regulation has since revoked them or denied certification.
Similar predatory tactics have been traced to 1,400 of the 3,600 applications.
Michael Halow denies the allegations, saying he provides services to applicants across several states who don't want to deal with bureaucratic paperwork.
However, according to The Beacon, the scheme may extend far beyond Missouri's borders, with similar schemes also seen in Arizona, Illinois, North Dakota and Utah.