October 14, 2014: A six-month investigation by Project CBD has revealed potentially serious quality control issues in products marketed by Medical Marijuana Inc, (MJNA) and questionable financial dealings between MJNA and its affiliates and subsidiaries.
Highlights from the Special Report written by Aaron Miguel Cantú for Project CBD:
- Lab tests commissioned by Project CBD reveal significant levels of toxic solvents in samples of Real Scientific Hemp Oil (RSHO) Gold, which is marketed by HempMeds, a wholly owned subsidiary of MJNA. These samples were submitted to Project CBD by people who say that they or their children became ill, in some cases, violently ill, after they ingested RSHO Gold.
- Promotional campaigns by MJNA and its subsidiaries have aggressively targeted children with serious disabilities in an effort to profit from CBD’s growing reputation as a miracle compound. (A remedy of last resort for children with catastrophic seizure disorders, CBD-rich oil from other sources has proven effective in some cases of treatment-resistant epilepsy.)
- Kannaway, another MJNA subsidiary, is engaging in business practices that may qualify it as a pyramid scheme based on guidelines published by the Federal Trade Commission, Bureau of Consumer Protection, and Division of Consumer and Business Education.
- Discrepancies between MJNA business results and its press strategy have caused industry analysts to raise questions about a “pump and dump” stock scheme and potential financial fraud.
- MJNA asserts that its CBD-infused “hemp oil” is legal in all 50 states despite DEA and FDA assertions that cannabidiol in any form (hemp or plant based) is still a schedule I substance, and evidence that the THC content sometimes exceeds federal limits.
Project CBD emphasizes that the findings detailed in “Hemp Oil Hustlers” should not be construed “as justification to attack the medical marijuana community or impose ever-more capricious restrictions on patients and providers.”
Project CBD calls for implementing sensible regulations for therapeutic cannabis products in accordance with standards that apply to other medicinal herbs, as developed by the American Herbal Pharmacopoeia. “All cannabis oil products should be lab tested for contaminants and labeled accurately for content,” the report concludes. “If tainted products are discovered, they should be recalled without delay.”
Project CBD recognizes that various companies are working with industrial hemp to create CBD-rich products. “We believe that industrial hemp is not an optimal source of CBD, but it can be a viable source of CBD if certain hemp cultivars are grown organically in good soil and safe extraction and refinement methods are employed,” the report asserts.
Project CBD maintains that federal law should be changed to facilitate CBD production “from the most prolific natural source of cannabidiol available—CBD-rich cannabis with little THC.” This would mean legalizing the whole plant, not just a single compound or a single strain.
About Project CBD
Project CBD is a California educational nonprofit that reports on developments in cannabis science, therapeutics and political economy.