{"id":1474,"date":"2021-10-01T19:57:02","date_gmt":"2021-10-01T19:57:02","guid":{"rendered":"https:\/\/www.leafly.com\/wp-home\/?p=180311"},"modified":"2021-10-01T19:57:02","modified_gmt":"2021-10-01T19:57:02","slug":"billions-finale-will-show-sticky-icky-side-of-federal-prohibition","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=1474","title":{"rendered":"\u2018Billions\u2019 finale will show sticky-icky side of federal prohibition"},"content":{"rendered":"<p>  <title>\u2018Billions\u2019 finale will show sticky-icky side of federal prohibition &#8211; Leafly<\/title>     <!-- This is Index Exchange, a script\/\/3rd-party integration that interjects GAM. It needs to be 'ahead' of GTM in the DOM, which comes from Cephalopod. GTM loads GAM. This script needs to setup it's interjection stuff before GAM loads. --> <!-- End Index Exchange --> <!-- Quotes = strings--><!-- No quotes = boolean-->\t   <!-- This site is optimized with the Yoast SEO Premium plugin v17.1.2 (Yoast SEO v17.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->                    <!-- \/ Yoast SEO Premium plugin. --> <\/p>\n<p> <!-- BEGIN Sailthru Horizon Meta Information --><\/p>\n<p><!-- END Sailthru Horizon Meta Information -->  <!-- Google Publisher Tag --> <!-- End Google Publisher Tag --> <!-- Google Tag Manager --> <!-- End Google Tag Manager --> <!-- Chartbeat --> <!-- End Chartbeat --><br \/>\n <!-- Google Tag Manager (noscript) -->   <!-- End Google Tag Manager (noscript) -->   <title>Leafly<\/title>     <title>Leafly \u00ae<\/title>                                                                                                                                                                                                                                                                                                                                                                                              <title>Loading\u2026<\/title>     <\/p>\n<div class=\"bg-white fixed flex hidden inset-0 items-start md:h-auto md:items-center overflow-auto\" id=\"age-gate-container\">\n<div class=\"bg-white md:h-auto mx-auto p-lg text-sm w-full\" id=\"age-gate\">\n<p><label for=\"select-country\">Where are you from?<\/label><\/p>\n<div class=\"age-gate__info\">\n<p><button class=\"button\" data-testid=\"age-gate-no-button\" id=\"tou-cancel\">no<\/button><button class=\"button ml-md\" data-testid=\"age-gate-yes-button\" id=\"tou-continue\">yes<\/button><\/p>\n<p><label class=\"checkbox__label my-xl\"><span class=\"text-xs\" id=\"remember-user-label\">Remember me for 30 days. <br \/>I confirm that this is not a shared device.<\/span><\/label><\/p>\n<p class=\"error error--underage hidden\">Darn! You&#8217;re not old enough to use Leafly.<\/p>\n<\/div>\n<p class=\"hidden age-gate__loading\">Redirecting you to<span class=\"redirect-domain\"><\/span><\/p>\n<p class=\"text-xs mt-auto\">By accessing this site, you accept<br \/>\nthe <a class=\"py-xl\" data-testid=\"tou-link\" href=\"https:\/\/www.leafly.com\/info\/terms-of-use\">Terms of Use<\/a><br \/>\nand <a class=\"py-xl\" data-testid=\"pp-link\" href=\"https:\/\/www.leafly.com\/info\/privacy-policy\">Privacy Policy<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"container my-xl\">\n<div class=\"row\">\n<div class=\"col md:col-9\" id=\"article-content\">\n<h4>The gap between federal and state regulations can form a dangerous trap for buzzing entrepreneurs \u2013 Here\u2019s how to navigate the green void<\/h4>\n<hr class=\"wp-block-separator\">\n<p class=\"has-drop-cap\">Showtime\u2019s <em>Billions<\/em> returned from hiatus this September with a plot that\u2019s got fans stuck like <a href=\"https:\/\/www.leafly.com\/strains\/original-glue\" target=\"_blank\" rel=\"noreferrer noopener\">gorilla glue<\/a>. The motor-mouthed series drops it\u2019s season five finale Sunday (October 3). And trailers promise the grand conclusion of a story pulled straight from the weed industry headlines <strong>[Warning: Season five spoilers below!]<\/strong><\/p>\n<h2 id=\"h-based-on-a-true-story\"><strong>Based on a true story<\/strong><\/h2>\n<p>In March, two consultants for delivery service Eaze Technologies Inc. were found guilty of conspiracy to commit bank fraud. The pair disguised payments made to Eaze using phony companies and overseas bank accounts. Otherwise, the company could not process card payments or deposit revenue in U.S. bank accounts. <\/p>\n<p>While the consultants are already serving federal time, Eaze\u2019s ex-CEO awaits sentencing in February, 2022. He plead guilty to conspiracy to commit bank fraud this February.<\/p>\n<figure class=\"wp-block-image size-full\"><img width=\"600\" height=\"450\" alt class=\"wp-image-180333 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.jpg,compress&amp;w=1480 1480w\"><figcaption>Damien Lewis as 10-figure baller Bobby Axelrod on \u201cBillions\u201d (courtesy of Showtime)<\/figcaption><\/figure>\n<p>On <em>Billions<\/em>, art imitates life as the fate of capitalist superhero Bobby Axelrod hinges on a delicate dance between state and federal cannabis laws. <\/p>\n<p>The power players on <em>Billions<\/em> want to know how and when federal prohibition will end. They\u2019re looking to earn, not burn, off the profitable plant, which generated <a href=\"https:\/\/www.leafly.com\/news\/industry\/marijuana-sales-data-americans-bought-more-weed-to-survive-2020\">$18.3 billion<\/a> in 2020. And as we all know, the U.S. is one precedent-setting Supreme Court case or <a href=\"https:\/\/www.leafly.com\/news\/politics\/entertainers-athletes-double-down-on-biden\" target=\"_blank\" rel=\"noreferrer noopener\">executive <\/a>order away from going green overnight. <\/p>\n<p>Until then, Eaze and <em>Billions\u2019<\/em> high-stakes stories reveal the layers of financial and political influence at play in the fight to end prohibition. As we await that glorious day, cannabis startups and adjacent partners should take a few hints from both of these cautionary tales.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>Whether you\u2019re chasing billions in the cannabis industry or lighting up for the <em>Billions<\/em> season finale on Sunday, here are three do\u2019s and don\u2019ts of cannabis compliance that you can take to the bank.<\/p>\n<\/blockquote>\n<p><strong>1. Do: Due Diligence<\/strong><\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"714\" alt class=\"wp-image-180334 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>It\u2019s not just fun to say. Putting the \u201cdo\u201d in due diligence will keep you out of some serious shit no matter what business you\u2019re in. <\/p>\n<p>Whether you\u2019re a fictional cannabis entrepreneur or a real one, clouded judgement can lead to financial ruin. That\u2019s why you should never feel too smart to study for potential pop quizzes, whether from the feds or your market foes. Knowing the legal ledges of your industry are crucial whether your company is playing offense or defense.<\/p>\n<h3>Learning the cannabis laws of any state or municipality is a crucial first step for any user, provider or professional in the cannabis industry. Click below to review our state by state guide to cannabis compliance.<\/h3>\n<p>Even in states that allow recreational use, doing <em>any<\/em> business with a cannabis company creates the risk of federal investigation, or worse. That\u2019s why banks and credit card providers continue to deny their services to even the largest MSO growers and dispensaries. It\u2019s also why cannabis remains an all-cash industry sprinkled with armored vehicles, automatic weapons and billions of \u201ctechnically\u201d illicit dollars.<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" alt=\"eaze-lawsuit-credit-cards-header\" class=\"wp-image-105713 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.png,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.png,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.png,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.png,compress&amp;w=1480 1480w\"><figcaption>Card companies and banks refuse to touch the cannabis business (greyj\/iStock)<\/figcaption><\/figure>\n<p>In the real life case of Eaze, the ex-CEO and board members admitted to knowing sham corporations and foreign accounts were being used to disguise the company\u2019s dank dollars. Eaze and its clients were simply tired of losing potential revenue because of electronic transactions and security measures. So they knowingly defied laws they saw as archaic. <\/p>\n<p>They clearly did <em>some<\/em> due diligence. Just not enough, as all parties severely misjudged their hands, and the long arm of the law. Instead of riding their righteous crusade against the feds to a historic high, they\u2019re all facing the sobering reality of steep fines and federal prison time.<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" alt=\"court-decision\" class=\"wp-image-154433 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-3.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-3.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-3.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-3.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>In court last year, Eaze\u2019s lawyers argued that their client\u2019s bank was fully aware of the scheme. They claim Bank of America and other partners overlooked Eaze\u2019s actions for one reason: They were profiting from the fraudulent deposits and transactions themselves. <\/p>\n<p>Since everything appeared legal, credit card payments were able to pass through Eaze\u2019s system and into the bank, benefiting everyone involved.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p><em>\u201cEaze conspire(d) to disguise the cannabis transactions as transactions for dog toys, dive gear, carbonated drinks, drone components and face creams, among other things, to obtain approval for these transactions\u201d \u2013 <a href=\"https:\/\/www.leafly.com\/news\/industry\/eaze-hit-with-lawsuit-over-credit-card-payments\" target=\"_blank\" rel=\"noreferrer noopener\">Federal lawsuit<\/a><\/em><\/p>\n<\/blockquote>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"768\" alt class=\"wp-image-180383 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-4.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-4.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-4.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-4.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>In the <em>Billions<\/em> world, Axelrod walks into a legal trap laid by his greatest foes \u2013 a rival deca-billionaire named Mike Prince (played by Corey Stoll), and a corrupt New York District Attorney named Chuck Rhoades (Paul Giamatti), who\u2019s dueled with Axelrod since the show debuted.<\/p>\n<p>Axe, was riding high after getting clearance to open a bank earlier in the season. He\u2019d grown tired of gambling his billions on the global stock market. And he saw owning his own bank like owning a worldwide casino. Only problem: Prince and District Attorney Rhoades see the bank as the perfect trap for their elusive target, who usually scribbles problems away by simply pulling out his checkbook.<\/p>\n<figure class=\"wp-block-image size-full\"><img width=\"800\" height=\"420\" alt class=\"wp-image-180384 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-5.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-5.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-5.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-5.jpg,compress&amp;w=1480 1480w\"><figcaption>Chuck Rhoades (Paul Giamatti, left) and Mike Prince (Corey Stoll, right) conspire to trap Axelrod in a federal conspiracy (courtesy of Showtime)<\/figcaption><\/figure>\n<p>\u201cWhen he wants something he\u2019s blind to everything else,\u201d said Prince at an anti-Axelrod strategy meeting in season five, episode 10, \u201cLiberty.\u201d \u201cAxe wants to gloat over my failures, and probably make me fail some more. We need to use that against him.\u201d<\/p>\n<p>Rhodes responds, \u201cHe has a new toy. A bank\u2026 No speed limit, nothing to stop him from making mistakes. Fatal ones. The kind that could put a man in prison.\u201d<\/p>\n<p>They know that Axelrod\u2019s competitive streak will push him to take big risks if it means defeating his rival Prince. Risks that include doing business with a cannabis company before completing his due diligence. <\/p>\n<p>\u201cI\u2019m the bait, and the bank is the trap,\u201d says Prince as they hatch their plan.<\/p>\n<p>As district attorney of the same New York court that tried Eaze\u2019s case, Rhoades identifies the fictional MSO \u201cFine Young Cannabis\u201d to play the role of Eaze. Instead of faking transactions, Fine Young Cannabis\u2019 CEO is found to be using illicit crops to supplement poor harvests.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cA legal cannabis seller cannot make up for seasonal shortfall by adding in a black market crop of Humboldt County with the legit stuff.\u201d \u2013 Kate Sacker, Assistant U.S. District Attorney on <em>Billions<\/em> <\/p>\n<\/blockquote>\n<p>Axelrod\u2019s enemies knew that he would be so blinded by his desire to bank FYC before Mike Prince, that he would rush the deal. Skipping all due diligence and missing the major red flag hiding in the company\u2019s weeds. <\/p>\n<p>To avoid chasing bait into a similar trap set by regulators or competitors, always do your due diligence on the current laws. You should also be aware of the compliance measures being taken by all parties involved in your business. And remember, if a deal seems too good to be true, it might be!<\/p>\n<p><strong>Lesson 2: Don\u2019t Make Unneccessary Enemies<\/strong><\/p>\n<figure class=\"wp-block-image size-full\"><img width=\"800\" height=\"600\" alt class=\"wp-image-180609 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-6.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-6.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-6.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-6.jpg,compress&amp;w=1480 1480w\"><figcaption>Axelrod\u2019s scorned prot\u00e9g\u00e9 Taylor Mason (Asia Kate Dillon) joins his enemies plot for revenge (Courtesy of Showtime)<\/figcaption><\/figure>\n<p>In both <em>Billions<\/em> and the Eaze case, the federal whistle was blown by a competitor who was, or could have been, a partner. <\/p>\n<p>In the Eaze trial, the ex-CEO\u2019s defense blamed the federal case on a <a href=\"https:\/\/www.leafly.com\/news\/industry\/eaze-hit-with-lawsuit-over-credit-card-payments\" target=\"_blank\" rel=\"noreferrer noopener\">2019 lawsuit<\/a> filed by Eaze competitor DionyMed. The suit accused Eaze of committing bank fraud. But the company claimed the case was a false and a \u201cthinly veiled attempt\u201d by DionyMed to promote its new delivery platform, Chill, by knocking Eaze off the block. <\/p>\n<p>The 2019 case was dismissed. But it flagged Eaze\u2019s fraud and set up a slam dunk case for the feds, who already boast a 99.6% conviction rate. We don\u2019t know how or why things turned sour between DionyMed and Eaze. But hindsight shows that Eaze\u2019s leadership had many opportunities to avoid their legal issues with better pot politics.<\/p>\n<figure class=\"wp-block-image size-full\"><img width=\"600\" height=\"336\" alt class=\"wp-image-180507 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.webp,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.webp,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.webp,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.webp,compress&amp;w=1480 1480w\"><figcaption>Mike Prince admires the solo Vanity Fair cover that sparked his rivalry with Bobby Axelrod (courtesy of Showtime)<\/figcaption><\/figure>\n<p>On <em>Billions<\/em>, Prince uses himself as bait to lead Axelrod\u2019s new bank into a similar federal nightmare. For the entire fifth season, Axe has been on a war path for Prince, who branded himself a younger, sharper and slightly richer Axe by stealing the cover story of <em>Vanity Fair<\/em>\u2018s \u201cDeca-Billionaires Club\u201d issue.<\/p>\n<p>But as season five wraps up, the healthy rivalry has become reckless. Axe refuses to shift his tunnel vision away from his ego-trip with Prince. Realizing this, Prince joins Rhoades to proactively defend himself from Axelrod\u2019s laser-focus.<\/p>\n<figure class=\"wp-block-image size-full\"><img width=\"620\" height=\"420\" alt class=\"wp-image-180511 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.webp,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.webp,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.webp,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-1.webp,compress&amp;w=1480 1480w\"><\/figure>\n<p>Prince knows that Axe needs major depositors for his new bank. He also knows that his hyper-competitive enemy struggles with FOMO. For Axe, the risk of Prince\u2019s new banking app beating him to the historic distinction of \u201cfirst cannabis-friendly bank\u201d is far more pressing than the risk of breaking federal laws.<\/p>\n<p>To sell the play, Prince and Rhoades recruit one of Axelrod\u2019s disgruntled employees to sneak the the FYC Trojan horse onto his radar. Axe\u2019s long list of scorned mentees and partners are happy to align with this plan, pledging their skills and resources to the long-term con.<\/p>\n<p>Instead of fighting like crabs in a barrel, smart entrepreneurs should network horizontally to build lifelong relationships across the industry. There\u2019s enough green in this game for everybody. So make sure your competitiveness isn\u2019t turning potential friends into foes.<\/p>\n<p><strong>Lesson 3: Don\u2019t Let Greed Turn You Green<\/strong><\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"768\" alt class=\"wp-image-180348 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.webp,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.webp,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.webp,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-2.webp,compress&amp;w=1480 1480w\"><figcaption>Throughout season five, Bobby Axelrod ignores his legal team\u2019s warnings about cannabis regulations. <\/figcaption><\/figure>\n<p>The 2019 Eaze lawsuit didn\u2019t just expose the individuals directly involved to federal scrutiny. It also implicated Eaze\u2019s partners, including Bank of America. The writers of <em>Billions<\/em> used this juicy detail to put Axe\u2019s imaginary bank on the chopping block, bring Prince and Rhoades\u2019 plan full circle.<\/p>\n<p>Federal prosecutors called witnesses from Bank of America to testify in the Eaze case. Until the SAFE Banking Act is passed, any partners or proceeds of cannabis-related businesses can be tied into similar cases.<\/p>\n<p>One witness claimed that the bank\u2019s policies prohibit cannabis-related businesses. But he also admitted that Bank of America knowingly profits from debit and credit card purchases made by cannabis customers. Essentially, the banks were not technically being harmed by Eaze\u2019s actions. So they argued the bank fraud charges were a bit dramatic.<\/p>\n<p>Banks are required to monitor all transactions for suspicious activity, and to shut down accounts found in violation. BoA says they screened and denied service to companies with weed-related names. But Eaze\u2019s defense argued that banks chose to overlook weed transactions because the feds were not enforcing prohibition in legal states. Eaze claimed its company and contractors were unfairly targeted by the federal fraud statutes. They felt they were being made an example of.<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"576\" alt=\"judge-reading-decision\" class=\"wp-image-170365 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-7.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-7.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-7.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition-7.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>At sentencing for the Eaze consultants, the judge agreed that the matter was ultimately frivolous, given the state-by-state trek toward legalization. Both consultants were sentenced to under three years in prison, less than $1 million in fines and to pay back their $17 million cuts of the $108-million scheme.<\/p>\n<p>Just like the real life defendants in the Eaze case, Axelrod\u2019s greed is what led him into federal court. At many points in season five, Axe ignores advice from partners, friends and legal counsel to slow down before closing the cannabis deal. His general lust for power and unique envy of Prince made him an easy target for the trap. <\/p>\n<h2>The moral of these Mary Jane stories<\/h2>\n<p>Even if we all agree that <strong>no one<\/strong> should be in prison for non-violent cannabis charges, it\u2019s hard to ignore how easily these sad stories could have been avoided with better judgement.<\/p>\n<p>Trailers for Sunday\u2019s finale (airing 9 PM EST on <a href=\"https:\/\/www.sho.com\/billions\" target=\"_blank\" rel=\"noreferrer noopener\">Showtime<\/a>) suggest Axelrod will be arrested by the feds for banking FYC\u2019s illegal revenues. And for once, his billion-dollar net worth may not be able to bail him out.<\/p>\n<p>Both Eaze and <em>Billions<\/em> show that there is no room in the cannabis industry for&nbsp;recklessness or greed. From federal court, to our favorite bro-opera, there\u2019s more eyes on the industry than ever.<\/p>\n<p>And between confusing regulations, deeply-invested Legacy players and highly-active illicit markets, the stakes are too high to handle the weed game as anything less than strictly business.<\/p>\n<p>Careful how you play your cards!<\/p>\n<div id=\"author-box\" class=\"p-lg my-xxl bg-white rounded border border-light-grey elevation-low\">\n<div class=\"mb-lg\"> <img decoding=\"async\" src=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.jpg\" alt=\"Calvin Stovall's Bio Image\" class=\"lazyload inline-block mr-md rounded-full border border-light-grey\"> <\/p>\n<p>Calvin Stovall<\/p>\n<\/p><\/div>\n<p class=\"text-sm\">Calvin Stovall writes and produces media in Atlanta, GA and runs day-to-day operations for The Artistic Unified Exchange, a nonprofit that protects intellectual property on behalf of independent artists and underserved communities.<\/p>\n<p> <a class=\"text-sm font-bold underline text-green\" href=\"https:\/\/www.leafly.com\/news\/author\/calvin-stovall\">View Calvin Stovall&#8217;s articles<\/a> <\/div>\n<div class=\"leafly-sailthru-signup p-lg my-xl bg-white rounded elevation-low border border-light-grey\">\n<p class=\"text-xs pt-lg\">By submitting this form, you will be subscribed to news and promotional emails from <a href=\"https:\/\/www.leafly.com\">Leafly<\/a> and you agree to Leafly&#8217;s <a href=\"https:\/\/www.leafly.com\/company\/tos\">Terms of Service<\/a> and <a href=\"https:\/\/www.leafly.com\/company\/privacy-policy\">Privacy Policy<\/a>. You can unsubscribe from Leafly email messages anytime.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<p> <!-- Chartbeat --> <!-- End Chartbeat -->  <!--\nPerformance optimized by W3 Total Cache. Learn more: https:\/\/www.boldgrid.com\/w3-total-cache\/ Served from: _ @ 2021-10-01 17:44:46 by W3 Total Cache\n--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Billions\u2019 finale will show sticky-icky side of federal prohibition &#8211; Leafly Leafly Leafly \u00ae Loading\u2026 Where are you from? noyes Remember me for 30 days. I confirm that this is not a shared device. Darn! You&#8217;re not old enough to use Leafly. Redirecting you to By accessing this site, you accept the Terms of Use and Privacy Policy. The gap between federal and state regulations can form a dangerous trap for buzzing entrepreneurs \u2013 Here\u2019s how to navigate the green void Showtime\u2019s Billions returned from hiatus this September with a plot that\u2019s got fans stuck like gorilla glue. The motor-mouthed&#8230; <\/p>\n","protected":false},"author":1,"featured_media":1475,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-1474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marijuana_information"],"jetpack_featured_media_url":"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/10\/billions-finale-will-show-sticky-icky-side-of-federal-prohibition.jpg","_links":{"self":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/1474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1474"}],"version-history":[{"count":0,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/1474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/media\/1475"}],"wp:attachment":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}