David Robinson | Albany Bureau

Joseph Spector, Albany Bureau Chief

Two former cannabis company officers accused of smuggling medical marijuana from Minnesota to New York are expected to have criminal charges dismissed after they complete community service.

In a deal struck with prosecutors in Minnesota, the former officers of Vireo Health must each finish 80 hours of community service to resolve the case, court records show. They will also be on probation for one year as part of the deal.

The ex-officers of Vireo, which has medical marijuana dispensaries in White Plains and Johnson City, Broome County, faced felony charges based on allegations they used the company’s armored vehicle to illegally transport $500,000 of marijuana oils from Minnesota to New York.

The case focused on whether state laws sufficiently addressed smuggling medical marijuana across state borders.

Deal reached

Assistant County Attorney Shane Simonds, the lead prosecutor, said a deal was struck to dismiss the charges against Laura Bultman, the former chief medical officer of Vireo Health, and Ronald Owens, the former chief security officer.

{{props.notification}} {{props.tag}} {{props.expression}} {{props.linkSubscribe.text}} {{#modules.acquisition.inline}}{{/modules.acquisition.inline}} ... Our reporting. Your stories. Get unlimited digital access to exclusive content. Subscribe Now

Simonds described the agreement as a uniquely lenient outcome of a criminal case. He attributed it to several factors, including the fact Bultman and Owens didn’t have prior criminal records and Minnesota’s judicial system hadn’t previously addressed interstate medical marijuana smuggling.

“This was the first test case out there, and I could live without them having been convicted if they were willing to do community service,” he said.

Paul Engh, an attorney for Bultman, didn’t immediately respond to a request for comment.

Bultman and Owens both pleaded not guilty to the charges in 2017, leading to a lengthy court battle that reached one of Minnesota's highest courts and prompted several medical marijuana legal reforms.

For example, lawmakers amended Minnesota’s medical marijuana law to add a $250,000 fine for a company caught transporting its marijuana-based drugs into other states, Simonds said.

Further, the state’s appeals court upheld the legal argument that the interstate smuggling was illegal, establishing a precedent that could strengthen future prosecution.

“The companies are on notice that this is a criminal act," Simonds said. "I felt that was a sufficient way of deterring future conduct.”

The New York connection

Tania Savayan/The Journal News

Some aspects of the case are connected to New York’s medical marijuana program, such as allegations the marijuana oil was sold illegally to New York patients and tested at the state’s Wadsworth Laboratory in Albany.

Selling medical marijuana made in another state is a violation of New York’s medical marijuana law.

New York's Department of Health, which oversees the medical marijuana program, has said it was independently investigating the alleged smuggling and would release its findings after the criminal case concludes.

“The Department is currently reviewing legal developments in Minnesota,” agency spokesman Jonah Bruno said Wednesday.

Vireo Health issued a statement Thursday on the resolution of the criminal case in Minnesota.