D.C. Cannabis Delivery Service Owner Pleads Guilty to Laundering $3.5 Million

The company used a common depositing method used to avoid triggering scrutiny from banks.

An unlicensed D.C. cannabis delivery service owner pleaded guilty on Tuesday to laundering around $3.5 million made by selling cannabis products under the guise of a licensed delivery service.

CEO Connor Pennington, 39, pleaded guilty to conspiracy to commit money laundering after he directed and green lit a scheme in which he and other business associates within his company, JointVentures LLC., deposited cash in denominations less than $10,000 into several bank accounts they operated.

The deposit method is one commonly deployed by those wanting to avoid triggering scrutiny from banks.

The company operated as a delivery service of cannabis products under the name “Joint Delivery,” though the entity was never licensed as a medical marijuana operator anywhere. In addition to flower, the business sold vape cartridges, wax, and edibles.

“JointVentures operated the distribution and delivery side of the enterprise out of a residential building in downtown D.C. and delivered its products to customers using delivery drivers or cyclists,” the U.S. Attorney’s Office for the Eastern District of Virginia stated in a release.

The office added that the business generated “nearly $1.5 million in 2018 alone. By 2021, in just the first three quarters of the year, JointVentures generated well over $2.3 million in revenue. ”

Pennington’s sentencing is set for May 2 as he faces a maximum penalty of 20 years in prison, though actual sentences for federal crimes are typically less than the maximum penalties.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.

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