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Legal Insider: Avoid Investments in Marijuana Businesses and Security Clearances


By John V. Berry, Esq.
Holding or applying for a security clearance and maintaining significant investments in marijuana businesses can be a problem. We have been advising clients about this issue since some states began to legalize marijuana around 2010. Owning an investment in a marijuana company (e.g., stock, equity) (or working for a marijuana enterprise) is a reportable clearance activity for security clearance holders and applicants and can lead to the loss of a security clearance or problems in obtaining one. Investments in marijuana-related companies may constitute involvement in illegal drug activities under existing government guidelines.
This can potentially be the case even where the clearance holder or applicant does not directly choose their individual stocks. It also makes no difference if the state that the investment is located in has legalized marijuana businesses. The federal government’s current view is that an individual has a duty to know about thei ....

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