MJ Biz Report – Illinois Regulators Say Curaleaf Involved In Systematic Diversion After High Level Employee Spills The Beans | Cannabis Law Report | How to order Skittles Moonrock online

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Illinois cannabis regulators suspected “systemic diversion” at major multistate operator Curaleaf Holdings’ cultivation center in the state, a former high-level employee alleged in a recent lawsuit.

According to a July 29 complaint filed in U.S. District Court in the Northern District of Illinois by Matthew Kalmick, a former Curaleaf regional compliance director, state officials noted “a vast amount of unaccounted-for inventory” at the company’s operation in Litchfield, Illinois.

In addition to “potential systemic theft,” Bresha Brewer, then the cannabis bureau chief at the Illinois Department of Agriculture (DOA), also “flagged numerous environmental, health and safety …  concerns” including “unlicensed pesticide use,” according to Kalmick’s suit.

Rather than correct that “crisis” or address separate “ongoing non-compliance” at another Curaleaf location in North Dakota, company brass fired Kalmick in May 2024 after he reported possible “violations of state and federal law,” the lawsuit alleges.

Unique for its detailed and serious allegations coming from a senior employee, Kalmick’s suit is also notable in alleging diversion in Illinois, a $2 billion annual market where state law restricts both the number of cultivators and their output.

Those are two factors usually absent in states where operators allege product missing from regulated supply channels.

Contacted through his attorney, Chicago-based Davina Rae DiPaolo, Kalmick declined to comment.

In an email, Curaleaf spokesperson Jordon Rahmil said the company would not comment.

Court records show that Curaleaf on Monday requested a three-week extension to file its response to Kalmick’s complaint, initially due this week.