“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

August 27, 2015

No Relief: Ruling Highlights Lack of Options for Marijuana Companies Seeking Bankruptcy Protection

 

By John Schroyer

“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

That’s a line in the first paragraph of a recent court ruling against Frank Arenas, a Colorado marijuana grower and wholesaler who tried to win federal bankruptcy protection. A U.S. Bankruptcy Court judge initially ruled that Arenas can’t claim such protections because marijuana is still illegal, and an appellate panel affirmed that decision last Friday.

It’s the latest in a string of court decisions on cannabis-related bankruptcy cases dating back to at least 2012, when a judge involved in the Arenas decision issued a similar ruling involving another marijuana company. There have been at least four other such decisions as well in Colorado and California – all with the same outcome as Arenas’ case.

So what can distressed marijuana companies do if they’re on the verge of bankruptcy? The answer may depend on which state a company is in, and how it’s structured.

Arenas, for example, made a big mistake in not keeping his personal assets separate from his business, said Arizona attorney Gary Michael Smith. That’s evident, Smith said, because Arenas tried initially to file for Chapter 7 bankruptcy protection and then convert it into Chapter 13, which is only doable if it’s a personal – not a business – bankruptcy.

“The mistakes he made makes it pretty clear that he conducted business in his personal name, and/or he was personally guaranteeing the debt that his business was assuming, which is horrible,” Smith said. “One should not do that, particularly with those amounts of money.”

Sean McAllister, a Denver attorney who also works closely with the cannabis industry, said one of the best and most obvious ways to avoid such pitfalls is to be careful when setting up a marijuana business at the outset.

“The most important thing for any cannabis company is to be really thinking about this as you make agreements, as you borrow money, as you enter into partnerships, because there are things you can do to limit your liability,” McAllister said. “The lack of bankruptcy protection is a problem, but it’s more of a problem if people have exposed their personal assets.”

As Marijuana Business Daily wrote about last year, there are a number of ways that cannabis companies can prepare for financial hardships and possibly avoid even having to consider bankruptcy.

There may be some additional steps companies can take, depending on the state where a given business is located, Smith said.

For example, a possibly unique precedent was set in Arizona several years ago when a court sided with a cannabis company that owed creditors $500,000, Smith said. The judge tossed a lawsuit brought by two creditors, saying the loans were illegal in the first place because they were given to a business handling cannabis, which is illegal under federal law.

“If that guy walked into my office and had this problem, what I’d probably suggest is he go into a federal lawsuit to have the debt related to the marijuana operation deemed void for illegality,” said Smith, referring to the owner of the Arizona business seeking relief from creditors. That would mean “nobody could enforce those debts against” the company, he added.

That probably wouldn’t work everywhere, said Colorado attorney Rachel Gillette. She said the state put in place protections for such deals, so under Colorado statute such an argument wouldn’t apply.

Still, there are other potential state laws that businesses might be able to take advantage of, said New York attorney Hanan Kolko. Some states have their own versions of bankruptcy protections, he said, that wouldn’t have the same conflicts as federal bankruptcy laws.

“To an extent that a state has that, a cannabis business could use that,” Kolko said.

But that underscores the need for business owners to do their homework and talk to legal counsel, both before companies are founded and if they ever run into financial hardship. And it highlights a need for further reforms.

“It’s just another example which illustrates why we need substantive reform at the federal level,” Gillette said. “It doesn’t work to operate in this sort of quasi-legal arena. The federal law needs to change.”

John Schroyer can be reached at johns@mjbizmedia.com

CONTINUE READING…

400 lbs of marijuana, $100K, 3 cars seized in Lawrence drug bust; 3 arrested

Fox 59

LAWRENCE, Ind. (Aug. 27, 2015)– Police arrested three people Wendesday morning in a Lawrence drug bust.

More than 400 pounds of marijuana, $100,000 in cash and three vehicles were seized.

David Miller, Denyran Calvin and Jamie Mueller David Miller, Denyran Calvin and Jamie Mueller

On Wednesday around 10 a.m., police say a concerned citizen informed them they saw people coming in and out of a building located at 9133 Pendleton Pike, Suite D, and smelled the odor of marijuana.

An officer investigated the report and located two individuals walking in and out of the suite. A large package of marijuana was seen inside the suite while the officer spoke with the individuals. After obtaining a search warrant, officers found the drugs, money and cars inside the suite.

Denyran Calvin, 33, David Miller, 31 and Jamie Muller, 30, were arrested and preliminarily charged with dealing and possession of marijuana over 10 pounds.

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Regarding kendra sams – "lodged" at laurel county corrections" in kentucky…

 

Ms. Kendra Sams,  29  years old, was being lodged at the Laurel County Corrections.

According to Facebook posts she suffered a seizure on July 12th which caused her to fall from the top bunk in her cell and land on the floor.  She was not given medical attention at that time.

At some point she was transferred to Casey County Corrections where her illness became acute.  Her Mother was apparently contacted and she was then transported to the Hospital.

Facebook Timeline Posts:

Roger Hoskins

August 18 at 12:18pm · Garrard, KY ·

 

I’m waking up to some heart breaking news out of the family and asking for all who can please pray

Roger Hoskins

August 18 at 3:10pm · Edited ·

 

Please be praying for Kendra Sams she’s going into surgery right now … This young lady didn’t deserve any of this and I’m confident that the story will be told soon…. Please now all the family ask is to be praying

Roger Hoskins added 2 new photos.

August 18 at 7:15pm · Garrard, KY ·

 

These picture are of Kendra Sams and this is not even the Justice this young lady has suffered .. She’s has much more going I inside her… And is in critical condition at UK hospital … She’s in bad shape according to family who is with her when I am updated on her condition I will pass it along .. The family ask for prayers and this should have never ever happen to anyone else

Roger Hoskins

August 18 at 7:49pm · Garrard, KY ·

 

Update on Kendra they have 3 drain tubes in her and not sure one will work right but already pulled 2 ounces of infection out of her back but keeping her sedated until tomorrow to do more test … No one is allowed to see her till tomorrow so please keep praying

Roger Hoskins

Yesterday at 3:36am · Garrard, KY ·

 

They have started a feeding tube on Kendra and a temp of 102 … Doctors said that the next 72 hour will be very critical… So keep prayers coming and I have had a lot ask what happened… Right now the families focus is on Kendra … All they need is prayers but I promise this story will be told .. Thank for all the praying that’s going on and as always it’s in Gods hands ..

Roger Hoskins

Yesterday at 1:37pm · Garrard, KY ·

 

The story is coming out …. Please pray for Kendra the doctors are hoping she last throughout the day

Roger Hoskins added 4 new photos.

Yesterday at 3:19pm · Edited ·

 

This all started at Lcdc and she was sent to Casey county jail with the out come being her fighting for her life …. On July 12th she had a seizure a few weeks later she was sent to Casey county detention center will little or no medicinal help … Her mother was called to come get her and this is now her daughter returned home to her …. Don’t know if she will see tomorrow… Please pray….

Roger Hoskins

17 hrs · Edited ·

 

So thankful for Facebook this night as my post for Kendra has brought some light on all this but most of all I wanna thank the people who are brave and step up in behalf of Kendra … That is why Facebook is a valuable tool … As of 2 am there is no changes in her … I wanna thank each person who has shared this and by all means please continue to do so … This family deserves answers ! This could be your family member……………I will not disclose their name but here is a tid bit of information ……………..

My sister was in the cell with this girl in Casey co jail! She needed medical attention from day 1 this could be anyone’s family member please share this lets raise awareness

Michelle Jackson

11 hrs ·

 

Update on Kendra!!!!!!
She is still in critical condition they are having trouble keeping her BP up still and now they’re having to give her blood (1pint) so far… Please keep prayers coming.. TIA

— with Roger Hoskins and 8 others at UK ICU.

Michelle Jackson

3 hrs ·

 

Look what the Lord has done…. GLORY GLORY GLORY I PRAISE YOUR HOLY NAME THANK YOU SWEET JESUS!!!! SHE MOVED HER MOUTH AND TOLD HER MOMMY SHE LOVED HER!!!!!!! HALLELUJAH!!!!!!! KING JESUS I KNOW YOU HEAR ME WHEN I PRAY

— with Roger Hoskins and 9 others at UK ICU.

Michelle Jackson's photo.

Roger Hoskins

2 hrs ·

 

Please keep sharing my post maybe someone seen something and will step forward for Kendra Sams … This needs media attention to get to the bottom of this

Roger Hoskins

6 hrs · Edited ·

 

The family knows she is not perfect but to see this after being in 2 jails and her mother was called to come get her only to go into uk hospital is sad this is Kendra Sams if anyone was in her cell with her in laurel or Casey county please get ahold of this family … We are looking for answers to what happened .. This is truly sad … We have tried to contact all media but no help as yet so family has no choice but turn to social media .. Any information is appreciated …please share

***

It is currently 8/20/15 at 10:30pm and I am awaiting a call from Roger Hoskins who is willing to fill in the gaps in this atrocity which has happened under the watch of  “Kentucky Corrections “.

We can only hope and pray that Kendra Sams receives the justice that the State of Kentucky owes her because of this horrific ordeal.  She is not out of ICU yet.   She is currently still fighting for her life.

It never should have happened.

ANYONE who is incarcerated is entitled to receive healthcare under the Justice Department.

 

https://www.facebook.com/photo.php?fbid=401505606710487&set=pcb.401506100043771&type=1&theater

https://www.facebook.com/roger.hoskins2

human brain grown in a jar? apparently, yes…

Modern science is the stuff of a Frankenstein nightmare with the promise of growing a brain in a jar

Can you grow a brain in a jar? Scientists claim they’ve done just that. And the implication could not be more chilling

By John Nash For The Daily Mail

Published: 19:09 EST, 20 August 2015 | Updated: 20:04 EST, 20 August 2015

This is the stuff of Frankenstein nightmares. Imagine yourself as a functioning brain kept in a laboratory jar. White-coated scientists are torturing you by feeding an endless stream of terrifying images and sensations into your nervous system.

Even if you could cry out for help — no one could legally come to your rescue.

For years, philosophers have pondered the ethics of conducting such Nazi-style experiments, as a theoretical basis for moral arguments. But this issue is no longer theoretical. The age of a human brain in a jar is fast becoming reality.

This week, American biologists announced that they had crossed a critical threshold in the science of growing a human brain and keeping it alive in a laboratory.

Rene Anand, a professor of biological chemistry and pharmacology at Ohio State University, astonished military experts by announcing that his team has successfully grown a near-exact replica of a five-week-old foetus’s brain.

It is only about the size of a pencil rubber. But it contains 99 pc of the cells that would exist in the brain of a human foetus, making it the most fully formed brain ‘model’ ever engineered.

It even has its own spinal cord and the beginnings of an eye, Professor Anand told the 2015 Military Health System Research Symposium in Fort Lauderdale, Florida.

He has engineered the brain using stem-cell technology, which involved turning adult skin cells into stem cells which are capable of growing into any type of body tissue. It is a breakthrough that paves the way to cloning human brains.

The work is not finished. Prof Anand now plans to continue growing his lab brain until it resembles that of a 12-week-old fetus.

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Read more: http://www.dailymail.co.uk/sciencetech/article-3205485/Can-grow-brain-jar-Scientists-claim-ve-just-implication-not-chilling.html#ixzz3jRiUwp00
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For some in the South, defying medical marijuana laws is the Lord’s work

By Quint Forgey, News21 August 19 at 6:30 AM

Image result for For some in the South, defying medical marijuana laws is the Lord’s work

Editor’s note: This is one in a series of articles on the legalization of marijuana, produced in partnership with the 2015 Carnegie-Knight News21 national student reporting project.

CHESTER, S.C. — She lives in the wooden house her grandfather built more than a century ago in Chester, S.C., a rural community about a two-hour drive southeast of the Blue Ridge Mountains.

The cluttered home is dimly lit and not air-conditioned, with the low hum of floor fans filling in rare lulls in conversation. Two chihuahuas, Cricket and Joe, scuttle around Ada Jones’s feet as she peers down through her eyeglasses at the iPad in her hands.

The tablet looks conspicuously out of place among the black-and-white photos hanging on the walls and the dangling, beaded divider into the next room. It serves as her connection to the outside world, as well as the outside world’s connection to Jones.

If someone needs medical marijuana, they contact her over the Internet.

Jones encourages those who reach out to her to purchase marijuana illegally and make their own cannabis oil. If they’re unsuccessful, she puts them in contact with a supplier who can sell them a more refined product.

“It’s almost like playing God,” Jones said. “If somebody contacts me, I have to look at them and wonder. I wonder if that’s police first, not if I can help their kid. I try not to do that, but you have to because you’re scared.”

Jones helps everyone she can, whether they be young mothers of epileptic children or older patients suffering from chronic pain. Her specific brand of civil disobedience, like so many other facets of Southern life, is captained by her faith.

“They talk about the South being the Bible belt, and praise the Lord we are,” Jones said. “I cannot not help somebody. I have to. As a Christian, that’s what I’m here for.”

Many Southern states have a long and failed history with medical marijuana, mired deep in forgotten statutes and a lost generation of patients. Only recently, as the marijuana movement sweeps through statehouses, have those laws become political tinder for a new debate in the Old South.

CONTINUE READING….

Coca & The Curing Of Drug Addiction

U.S. Marijuana Party Kentucky

Professor Palmer, of the University of Louisville, Kentucky, has an article upon this subject in the Louisville Medical Journal, for 1880, and he therein narrates three cases in which he found the Coca a complete and easy substitute for the opium or morphine which had been habitually taken. One sufferer had been in the habit of taking thirty grains of morphine daily, and yet abandoned that drug wholly, and at once, and without the slightest difficulty, by resorting to the fluid extract of Coca whenever the craving attacked him.  Nor can this be considered simply an exchange of masters, since the uniform testimony of even those who have used Coca for a long time, and continuously, is that abstention from its employment is perfectly easy, and is not accompanied by any feelings of distress or uneasiness whatever.  Were Coca of no other use than this it would be a boon…

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The Next 11 States to Legalize Marijuana

24/7 Wall St.

Marijuana foliage background photo Marijuana prohibition is entering its 78th year. Colorado’s marijuana law went into effect at the beginning of last year in the wake of changing attitudes. Compared to 1969, when only 12% supported legalizing pot, today a majority of Americans support legalizing recreational use of the drug.

It is legal to purchase marijuana in four states — Alaska, Colorado, Oregon, and Washington — as well as in the District of Columbia. Prior to the legalization, all of these states had already reduced the penalties for possession and use of small amounts of the drug or introduced policies permitting medical marijuana use. To identify the states most likely to legalize marijuana next, 24/7 Wall St. reviewed the 11 states where by law residents in possession of small amounts of the drug are not punishable by jail time, and medical marijuana use is permitted.

Click here to see the next 11 states to…

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drew curtis (Independent) for governor has said he would sign into law a measure allowing the use of recreational marijuana in the state of Kentucky if the legislature approved it.

By Jack Brammer

jbrammer@herald-leader.comAugust 10, 2015

FRANKFORT — Digital entrepreneur Drew Curtis and his wife, Heather Curtis, paid $500 and submitted more than 9,000 signatures Monday morning to enter the race for Kentucky governor and lieutenant governor as independents.

The secretary of state’s office said a few hours later that the husband-and-wife team from Versailles had submitted at least 5,000 valid signatures of registered Kentucky voters, as required by law, and therefore would appear on the Nov. 3 ballot.

The major party names on the ballot are Democrat Jack Conway and running mate Sannie Overly, and Republican Matt Bevin and running mate Jenean Hampton.

Tuesday is the deadline for independent candidates to enter the race.

Drew and Heather Curtis, both 42, are not the first married couple to run for the state’s two highest elective offices. Steven Maynard and his wife, Bonnie, of Inez ran for governor and lieutenant governor in the 1995 Democratic primary. Paul Patton won the nomination.

The Conway campaign said it had nothing to say about the Curtis campaign. The Bevin campaign did not respond to a request for comment.

Speaking at a news conference in front of the Capitol, Drew Curtis said he and his wife were citizen candidates, not politicians.

Curtis said he didn’t know from which political party he would draw more votes, but he predicted he would win the race and not be a spoiler. He was a Democrat before changing to an independent last year.

Curtis said that Conway has yet to say no to any question that begins with "would you fund this?" and that Bevin can’t remember his policy positions "20 minutes after he says them."

As governor, Curtis said, he would consult with his friends in Silicon Valley and try to use his digital entrepreneurship background to bring broadband Internet access to all parts of Kentucky.

Curtis is founder of Fark.com, a news aggregation website. He described it as a combination of The Daily Show and the Drudge Report.

He said he would "use a lot of social media" to win the race and would not accept campaign contributions from special interests.

To participate in some of the upcoming debates, Curtis said, he would need to attract at least 10 percent of the vote in public polling. In a recent Bluegrass Poll, Curtis stood at 8 percent.

On issues, Curtis said he thought the state has enough money to continue funding an expanded Medicaid program in 2017, but he wasn’t sure about 2020.

He said he would sign into law a measure allowing the use of recreational marijuana in the state if the legislature approved it.

He also said county clerks should "do their job" and issue marriage licenses to all qualifying couples.

Curtis said he voted for Democrat Barack Obama for president in 2008 but had forgotten his presidential preference in 2012.

Of this year’s down-ticket candidates for other state constitutional offices, he said he liked lieutenant governor candidate Hampton, saying they had talked about popular fictional characters "Batman" and The Walking Dead.

Curtis declined to be pegged as a liberal or conservative, calling himself "an ultra-pragmatist."

He said he chose his wife to be his running mate because they have operated a company together for 16 years and make "a great team."

Heather Curtis said her husband was "brilliant" and that "he moves mountains."

Heather Curtis acknowledged that she first said no when her husband told her he would like to run for governor and wanted her to be his running mate.

Curtis’ campaign manager is Andrew Sowders. His campaign communications director is Heather Chapman.

Jack Brammer: (859) 231-1302. Twitter: @BGPolitics. Blog: bluegrasspolitics.bloginky.com.

Read more here: http://www.kentucky.com/2015/08/10/3982402/farkcom-founder-drew-curtis-files.html#storylink=cpy

Only man in Missouri serving life without parole for marijuana offenses, granted parole, son says

FOX 4 Kansas City WDAF-TV | News, Weather, Sports

Free Jeff Mizanskey campaign. From the Free Jeff Mizanskey Facebook page. Free Jeff Mizanskey campaign. From the Free Jeff Mizanskey Facebook page.

JEFFERSON CITY, Mo. — The only man in Missouri serving a life sentence without the possibility of parole for non-violent marijuana related
offenses is now getting released from the maximum-security prison in Jefferson City, according to the man’s son.

Jeff Mizanskey was told Monday morning that he has been granted parole, according to his son, Chris. Chris Mizanskey says his dad should be released within 10 to 25 days. He says his dad called him briefly Monday morning to share the news. They planned to talk again Monday night.

Jeff Mizanskey, to be freed,  after spending 20 years for repeated marijuana offenses.  He was sentenced to life without parole. Jeff Mizanskey, to be freed, after spending 20 years for repeated marijuana offenses. He was sentenced to life without parole.

Jeff Mizanskey has already served more than 20 years in the prison for repeat marijuana offenses. He is now 62-years old.

Chris Mizanskey appealed to the public and to the governor…

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Activists: Patients suffer due to slow implementation of marijuana law

WWLP.com

BOSTON (State House News Service) – Medical marijuana advocates gathered recently on the State House steps for a vigil to remember patients who died before they could gain safe and legal access to medical cannabis, with advocates describing them as victims of the state’s slow implementation of its medical marijuana program.

“We’ve seen a lot of patients struggle and a lot of fallen family members and friends while we’ve been waiting for the implementation of the medical marijuana program in Massachusetts,” Nichole Snow, executive director of Massachusetts Patient Advocacy Alliance, said. “It’s been three years since voters passed the Humanitarian Care Act of 2012. The slow implementation and rollout has cost lives.”

At the polls in November 2012, 63 percent of Bay State voters approved a law to give patients with certain ailments the option to use medical marijuana to treat themselves. So far, only one dispensary facility has opened…

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