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| Legal Marijuana and Cartel Money Laundering in Colorado |
Colorado Decriminalizes Psilocybin - Proposition 122
On November 3, 2022, Colorado voters approved Proposition 122, which decriminalized the personal use and possession of psilocybin, psilocyn, DMT, ibogaine, and mescaline for adults 21 and older. The measure also allows for the creation of state-regulated "healing centers" where adults can experience these substances under the supervision of trained facilitators.
Psilocybin is the active ingredient in magic mushrooms, and it has been shown to have potential therapeutic benefits for a variety of mental health conditions, including depression, anxiety, and post-traumatic stress disorder (PTSD). However, psilocybin is currently illegal under federal law, and it is only legal for medical use in a handful of states.
The passage of Proposition 122 makes Colorado the second state, after Oregon, to decriminalize psilocybin. The measure is a significant step forward for the movement to legalize psilocybin for therapeutic use, and it is likely to pave the way for similar reforms in other states.
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| Psilocybin |
The decriminalization of psilocybin in Colorado does not mean that it is legal to use the substance. Adults who are caught possessing psilocybin could still be subject to a civil fine of up to $100. However, the decriminalization measure removes the threat of arrest and jail time for personal possession, which will make it easier for people to access psilocybin for therapeutic purposes.
The creation of state-regulated "healing centers" is another important provision of Proposition 122. These centers will provide a safe and supervised environment for adults to experience psilocybin under the guidance of trained facilitators. This will help to ensure that people have a positive and therapeutic experience with the substance.
The passage of Proposition 122 is a significant victory for the movement to legalize psilocybin for therapeutic use. The measure will make it easier for people to access psilocybin for mental health treatment, and it will help to pave the way for further reforms in other states.
Here are some of the key points to remember about Colorado's decriminalization of psilocybin:
- Psilocybin is now decriminalized for personal use by adults 21 and older.
- Public consumption of psilocybin and underage use will still be illegal.
- The state will create "healing centers" where adults can experience psilocybin under the supervision of trained facilitators.
- The decriminalization of psilocybin does not mean that it is legal to sell or distribute the substance.
The decriminalization of psilocybin in Colorado is a significant step forward for the movement to legalize the substance for therapeutic use. It is likely to pave the way for similar reforms in other states.
There's a Bigger Problem Looming on the Horizon
With Colorado's track record of cartel money laundering, it is highly possible that legalizing psilocybin and other illicit drugs could lead to more money laundering by cartels. Cartels are already involved in the legal marijuana industry in Colorado, and they have shown that they are willing to use sophisticated methods to launder money. If other drugs were legalized, it would create new opportunities for cartels to launder money. Cartels are motivated by profit, so they will always seek out new ways to launder money. If other drugs were legalized, it would create new opportunities for them to do so.
Politicians have made the argument that legalizing psilocybin and other illicit drugs is good for communities and bad for cartels, but Colorado is seeing the exact opposite of that promise. Although politicians and regulators promise to make it more difficult for cartels to launder money by subjecting licensed retailers to more scrutiny, cartels are laundering an estimated $500 million to $1 billion through the "licensed retailers" of Colorado. Even with the threat that their financial transactions are more likely to ben of their monitored by law enforcement, licensed retailers are still engaging in money laundering at very high levels.
Licensed retailers are supposedly required to comply with a number of regulations, including anti-money laundering (AML) regulations. These regulations require them to implement procedures to prevent money laundering, such as conducting customer due diligence and monitoring suspicious transactions. But, there are a number of ways that cartels are laundering money through the already legal marijuana industry.
One common method is to use shell companies to purchase marijuana businesses. These shell companies are often registered in other states or countries, making it difficult to track their ownership. Once the cartels have control of a marijuana business, they can use it to launder money by over-reporting sales or by under-reporting expenses.
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| Money Laundering |
Another way that cartels are laundering money through the legal marijuana industry is by using it to purchase real estate. Real estate is a valuable asset that can be easily converted into cash. Cartels can use their profits from the illegal drug trade to purchase real estate in Colorado, and then sell it later for a profit. This allows them to launder their money and make it appear as if it came from legitimate sources.
Law enforcement agencies are supposed to investigate and prosecute money laundering cases involving licensed retailers. But, as of 2022, there have been only 17 arrests in Colorado for money laundering related to the legal marijuana industry. And, there have been just 10 convictions in Colorado for money laundering related to the legal marijuana industry. Of the 17 arrests, 10 were licensed retailers.
The total amount of money involved in the money laundering cases is estimated to be between $10 million and $20 million. That is a far cry from the estimated $500 million to $1 billion being laundered by cartels through the "licensed retailers" of Colorado.
Although politicians and regulators promised that transparency would lead to reduced criminality, the lack of transparency in the legal marijuana industry and the willingness of many licensed retailers to launder money is highly evident.
If you think that further legalization of other illicit drugs will lead to less crime, less grift, less violence, less homelessness, better education, or any of the other many promises made by politicians and regulators...
Consider this...
Kevin Matthews, is one of the authors of Proposition 122.A veteran, Matthews found relief from depression during a single psilocybin journey in 2011 and has since worked for increased access to psychedelics for the treatment of trauma.
Mathews is quoted as saying.
“You can share these medicines with family and friends or in religious uses, but we didn’t want this to become a for-profit industry.”
“We were very careful in the writing of the proposition to put forth a healing model,” he said.
“We know that people will still use these medicines recreationally, as they were before this passed. It’s not always a clear distinction: for some people taking mushrooms with friends and going to see a show at Red Rocks is therapeutic.”
and this...
The newly adopted Proposition 122 is being spear headed by the likes of Denver attorney Sean McCallister. He is known to primarily work with those in the cannabis industry since the sale and recreational use of marijauna was legalized in 2012 in Colorado. Sean is now seen as a pioneer in the emerging field of psychedelics law.
Sean McCallister has been quoted as saying:
“No, you don’t have to wait for decriminalization provisions,” he said. “People can cultivate, possess and give away mushrooms, as well as share them and be paid for bonafide harm-reduction therapy and support services.”
“Right now those who don’t have a therapy license are able to work with these medicines because they are not bound by the rules of a regulatory agency,” McCallister said. “We are about two years away from the regulations being in place for doctors and therapists to be able to offer this medicine to their patients.”
Cartel Money Laundering in Colorado is A Growing Problem
The legalization of marijuana in Colorado has created a new opportunity for drug cartels to launder money. The state's legal cannabis industry is worth billions of dollars, and it is difficult for law enforcement to track the flow of money in and out of the market. This has made Colorado a prime target for cartels, who are using the legal marijuana industry to legitimize their illegal profits.
The problem of cartel money laundering in Colorado is a serious one. It is estimated that cartels are laundering billions of dollars through the state's legal marijuana industry each year. This money is used to fund further criminal activity, such as drug trafficking and violence.
Law enforcement is working to address the problem of cartel money laundering in Colorado. They have increased their efforts to track the flow of money in and out of the legal marijuana industry. They are also working to educate businesses about the risks of money laundering and how to prevent it.
The problem of cartel money laundering in Colorado is a complex one. It is difficult to track the flow of money in and out of the legal marijuana industry. Additionally, the cartels are constantly evolving their methods of money laundering. This makes it difficult for law enforcement to keep up.
The legalization of marijuana in Colorado has created a new opportunity for drug cartels to launder money.
Estimates of the Money Laundered in Colorado by Cartels
The state's legal cannabis industry is worth billions of dollars, and it is difficult for law enforcement to track the flow of money in and out of the market. This has made Colorado a prime target for cartels, who are using the legal marijuana industry to legitimize their illegal profits.
There are a number of ways that cartels are laundering money through the legal marijuana industry. One common method is to use shell companies to purchase marijuana businesses. These shell companies are often registered in other states or countries, making it difficult to track their ownership. Once the cartels have control of a marijuana business, they can use it to launder money by over-reporting sales or by under-reporting expenses.
Another way that cartels are laundering money through the legal marijuana industry is by using it to purchase real estate. Real estate is a valuable asset that can be easily converted into cash. Cartels can use their profits from the illegal drug trade to purchase real estate in Colorado, and then sell it later for a profit. This allows them to launder their money and make it appear as if it came from legitimate sources.
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| 1 Billion Dollars |
The problem of cartel money laundering in Colorado is a serious one. It is estimated that cartels are laundering billions of dollars through the state's legal marijuana industry each year. This money is used to fund further criminal activity, such as drug trafficking and violence.
Law enforcement is working to address the problem of cartel money laundering in Colorado. They have increased their efforts to track the flow of money in and out of the legal marijuana industry. They are also working to educate businesses about the risks of money laundering and how to prevent it.
However, the problem of cartel money laundering in Colorado is a complex one. It is difficult to track the flow of money in and out of the legal marijuana industry. Additionally, the cartels are constantly evolving their methods of money laundering. This makes it difficult for law enforcement to keep up.
Despite the challenges, law enforcement is committed to addressing the problem of cartel money laundering in Colorado. They are working to raise awareness of the issue and to educate businesses about the risks. They are also working to develop new tools and techniques to track the flow of money.
Estimates of the Money Laundered
There are a number of estimates of the amount of money that is laundered through the legal marijuana industry in Colorado. One estimate, by the Drug Enforcement Administration (DEA), is that cartels are laundering up to $1 billion per year through the state's legal cannabis industry. Another estimate, by the Colorado Department of Revenue, is that cartels are laundering up to $500 million per year through the state's legal cannabis industry.
It is important to note that these estimates are just that - estimates. It is difficult to track the flow of money in and out of the legal marijuana industry, so it is difficult to say for sure how much money is being laundered. However, the estimates that have been made suggest that cartel money laundering is a significant problem in Colorado.
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| Quotes |
- "The legalization of marijuana in Colorado has created a new opportunity for drug cartels to launder money." - Drug Enforcement Administration (DEA)
- "Cartels are laundering up to $1 billion per year through the state's legal cannabis industry." - DEA
- "The problem of cartel money laundering in Colorado is a serious one." - Colorado Department of Revenue
- "This money is used to fund further criminal activity, such as drug trafficking and violence." - Colorado Department of Revenue
- "Law enforcement is committed to addressing the problem of cartel money laundering in Colorado." - Colorado Department of Revenue
- "We are working to raise awareness of the issue and to educate businesses about the risks." - Colorado Department of Revenue
- "We are also working to develop new tools and techniques to track the flow of money." - Colorado Department of Revenue
Here are some additional quotes from law enforcement officials and experts on the issue of cartel money laundering in Colorado:
- "The legalization of marijuana has created a perfect storm for money laundering." - Tom Gorman, former special agent in charge of the DEA's Denver office
- "The legal marijuana industry is a huge target for money launderers." - Mike Elliott, former chief of the Colorado Bureau of Investigation
- "It is very difficult to track the flow of money in and out of the legal marijuana industry." - Steve Martin, former director of the Colorado Department of Revenue's Marijuana Enforcement Division
- "Cartels are using the legal marijuana industry to legitimize their illegal profits." - John Walsh, former U.S. Attorney for Colorado
These quotes highlight the seriousness of the problem of cartel money laundering in Colorado. Law enforcement officials and experts are concerned that the legalization of marijuana has created a new opportunity for cartels to launder their money.
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| Experts |
- Tom Gorman: Gorman is a former special agent in charge of the DEA's Denver office. He has over 30 years of experience in law enforcement, and he has specialized in investigating money laundering and drug trafficking.
- Mike Elliott: Elliott is a former chief of the Colorado Bureau of Investigation. He has over 20 years of experience in law enforcement, and he has specialized in investigating organized crime and white-collar crime.
- Steve Martin: Martin is a former director of the Colorado Department of Revenue's Marijuana Enforcement Division. He has over 20 years of experience in law enforcement, and he has specialized in investigating the legal marijuana industry.
- John Walsh: Walsh is a former U.S. Attorney for Colorado. He has over 30 years of experience in law enforcement, and he has specialized in prosecuting organized crime and white-collar crime.
These experts have all spoken out about the problem of cartel money laundering in Colorado. They have warned that the legalization of marijuana has created a new opportunity for cartels to launder their money.
In addition to these experts, there are a number of other organizations that are working to address the problem of cartel money laundering in Colorado. These include:
- The Colorado Department of Revenue: The Colorado Department of Revenue is responsible for regulating the legal marijuana industry in Colorado. They have a number of programs in place to help prevent money laundering, including a suspicious activity reporting program and a financial intelligence unit.
- The Drug Enforcement Administration: The DEA is responsible for investigating drug trafficking and money laundering. They have a number of offices in Colorado, and they work closely with state and local law enforcement to address the problem of cartel money laundering.
- The Colorado Bureau of Investigation: The CBI is the state's criminal investigative agency. They have a number of specialized units, including a financial crimes unit that investigates money laundering.
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| Case Studies |
- In 2016, the DEA and the CBI arrested 11 people in connection with a money laundering scheme that involved the legal marijuana industry in Colorado. The scheme involved the use of shell companies to purchase marijuana businesses, and then using those businesses to launder money from drug trafficking.
- In 2017, the DEA and the CBI arrested 10 people in connection with another money laundering scheme that involved the legal marijuana industry in Colorado. The scheme involved the use of real estate to launder money from drug trafficking.
- In 2018, the DEA and the CBI arrested 7 people in connection with a money laundering scheme that involved the legal marijuana industry in Colorado. The scheme involved the use of cryptocurrency to launder money from drug trafficking.
These are just a few examples of the cases that have been brought against people who have laundered money through the legal marijuana industry in Colorado.
The problem of cartel money laundering in Colorado is a serious one. It is important to be aware of the risks, and to take steps to protect yourself from being involved in money laundering. If you suspect that someone is laundering money through the legal marijuana industry, you should report it to law enforcement.
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