Boston woman gets time served for role in multi-million-dollar cannabis enterprise

Article content

A Boston woman involved in a cannabis delivery service with revenue exceeding US$14 million ($17.8 million) over a two-year period that didn’t pay any taxes has been sentenced to time served.

Article content

U.S. District Court Judge Timothy S. Hillman handed down the sentence, which also includes two years of supervised release and restitution of US$82,000 ($104,140), last Friday, notes a statement from the U.S. Attorney’s Office District of Massachusetts. The sentence follows Fridkes pleading guilty last September to conspiring to distribute more than 100 kilograms of cannabis.

Although both medicinal and recreational cannabis are legal in Massachusetts, distribution of adult-use weed is not. A person convicted of distributing 100 to less than 2,000 pounds (45 to 907 kilograms) of cannabis, a felony charge, faces a maximum penalty of 15 years in prison and a fine of US$25,000 ($31,750), according to the National Organization for the Reform of Marijuana Laws.

Article content

Called Northern Herb, the delivery service operated from 2015 to 2018 was managed by Fridkes, who served as office manager, and Deana Martin, the owner and manager of the business. Northern Herb was not licensed by the state or any other governmental entity to sell or distribute cannabis.

Although the state Cannabis Control Commission green-lit delivery of legal cannabis two years ago, it wasn’t until this year that any related licensed businesses got up and running.

Earlier this year, Martin pleaded guilty to one count of tax evasion, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and three counts of money laundering.

Although Northern Herb had total revenue exceeding US$14 million ($17.8 million) between May 2016 through July 2018, it “did not withhold or pay taxes on its millions of dollars in marijuana sales, did not remit or pay employment taxes in connection with its workforce and did not pay taxes on its profits,” the district attorney reports.

Article content

The business purported to provide medical marijuana but did not require a medical marijuana card for purchases. It would also make deliveries to unattended locations like front doors or hallways.

Information from the state government notes that to register for the medical use of marijuana program, individuals must be certified by a qualified health care provider after the patient is diagnosed with a debilitating medical condition.

Northern Herb used locations in Canton, Milton, Foxboro and Hyde Park to store and distribute marijuana, and employed at least 25 workers, the attorney’s office reported this spring. Paying its workers in cash, it did not pay any payroll or income taxes.

Martin’s sentence is expected this month. On just the drug counts, she faces a sentence of up to 20 years in prison, at least three years and as long as a lifetime of supervised release and a top fine of US$1 million ($1.3 million).

With regard to the money laundering charge, that carries a maximum penalty of 20 years in prison, three years of supervised release and either a US$500,000 ($635,000) fine or twice the value of the money laundered.

“Martin also faces restitution and forfeiture,” the statement adds.

Article content

Subscribe to Weekend Dispensary, a new weekly newsletter from The GrowthOp.