Allegations of Predatory Contracts Surface in Missouri’s Social Equity Cannabis Program

LOS ANGELES- Missouri’s social equity cannabis licensing program faces scrutiny amid allegations of predatory investor contracts. Designed to benefit disadvantaged individuals, the program has seen reports of investors using deceptive agreements to gain control of licenses meant for marginalized groups.

Destiny Brown, one of 16 winners of a microbusiness dispensary license, claims she unknowingly signed a contract with cannabis investor Michael Halow that would have transferred business ownership to him. Brown’s case is one of several where contracts allegedly allowed investors to bypass social equity rules by using qualified applicants as legal fronts.

The state has revoked six licenses connected to Halow, citing misleading information and ownership transfer agreements. Investigations are ongoing into other similar practices, raising broader concerns about the integrity of the program intended to aid communities disproportionately impacted by cannabis laws.

These issues mirror controversies seen in other states’ social equity programs, highlighting systemic challenges in ensuring fairness in cannabis licensing.