Fed’s Say Bankruptcy Not An Option For Cannabis Staffing Agency Employee

The DOJ has direct oversight when it comes to US bankruptcy

The Justice Department says an Oregon woman can’t use bankruptcy because she works for a staffing agency that recruits employees for the cannabis industry, part of a broader department policy imposing the federal pot ban on individuals whose income is tied to commercial marijuana.

The U.S. trustee, a Justice Department bankruptcy monitor, said in papers filed in the U.S. Bankruptcy Court in Portland that chapter 13 filer Holly Christine Adair is violating the federal law outlawing marijuana because the agency she works for, GreenForce Staffing, is paid to place prospective employees at cannabis businesses. The U.S. Trustee Program is a Justice Department unit that polices the nation’s bankruptcy courts.

A lawyer for Acting U.S. Trustee Gregory Garvin, whose region includes Oregon, Washington and other northwestern states, made the argument in a motion to dismiss Ms. Adair’s chapter 13 case, which she filed in January. Ms. Adair sought bankruptcy protection primarily to prevent a bank from foreclosing on her home, her lawyer, Darin Wisehart, told The Wall Street Journal.

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