Four months after San Bernardino County sheriff’s deputies seized $1.1 million in licensed marijuana proceeds from an armored car company, the U.S. Department of Justice (DOJ) will return the cash, the Institute for Justice (IJ) announced Wednesday (April 13).
Under the terms of the settlement, the DOJ has agreed to return all of the funds confiscated from a pair of Empyreal Logistics armored vehicles by law enforcement.
Funds from the cash logistics service were transferred to federal law enforcement for civil forfeiture proceedings.
The FinTech and armored car company operates in 28 states. Their services include secure delivery between businesses and financial institutions. The company does not transport cannabis.
In January, Empyreal filed a lawsuit arguing that all the money funds confiscated were financial institution deposits from state-licensed and state-legal cannabis operations.
“Empyreal has always viewed ourselves as a partner to financial institutions and law enforcement,” said Empyreal CEO Deirdra O’Gorman in a statement. “Our service increases transparency and makes communities safer.”
IJ Senior Attorney Dan Alban said while Empyreal was operating legally under California law, compliant businesses can be targeted funder federal civil forfeiture laws. Civil forfeiture allowed law enforcement officers to seize legal business proceeds and threaten to keep it, he added.
In exchange for the return of the funds, Empyreal said it will dismiss its case against the federal government.
Earlier this month, Bloomberg reported cashless ATMs have been used to process $7 billion in cannabis transactions.
Read more: Cashless ATMs Mask Estimated $7B in Cannabis Transactions
Legal cannabis retailers have had problems facilitating payments due to the fact that marijuana is still illegal on the federal level. The continuing conflict with banks makes it nearly impossible for shops to accept any payments other than cash.
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