--- title: Oregon Regulator Shuts Down 2 Marijuana Businesses for Rule Violations description: The Oregon Liquor Control Commission is sending a strong message that marijuana establishments must comply with the regulations or be shut down permanently. The Commission shut down two licensees based on significant regulatory violations including misrepresentation and evidence tampering. The Commission’s decision to terminate the license of serious rule offenders is consistent with last month’s […] image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/2018/09/23/2018-9-23-oregon-regulator-shuts-down-2-marijuana-businesses-for-rule-violations#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) # Oregon Regulator Shuts Down 2 Marijuana Businesses for Rule Violations ![Susan Ameel](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Susan Ameel September 23, 2018 The Oregon Liquor Control Commission is sending a strong message that marijuana establishments must comply with the regulations or be shut down permanently. The Commission shut down two licensees based on significant regulatory violations including misrepresentation and evidence tampering. The Commission’s decision to terminate the license of serious rule offenders is consistent with last month’s determination to [revoke the license of Black Market Distribution](https://www.thcregs.com/news/2018/8/27/oregon-moves-to-revoke-marijuana-license)due to recidivist activity. First, the Commission upheld the temporary suspension by an administrative law judge of the Corvallis Cannabis Club’s retail license due to federal criminal investigations. The Commission charged the Corvallis Cannabis Club with five (5) violations following a search warrant that was executed by federal investigators. The Commission also cancelled the recreational marijuana producer license held by the High Cascades Farm of Bend for thirteen (13) significant violations ranging from performing activities outside the authorized scope of the license, misrepresenting the destruction of marijuana plants, intentionally destroying or concealing evidence, and failing to disclose financial owners. The violations cited by the Commission show an intentional attempt to circumvent the regulations for the entity’s financial benefit. Compliance with regulatory requirements is going heavily scrutinized as the marijuana industry matures and more states enter into the market. Regulators are armed with significant information through the seed-to-sale tracking systems that allow them to identify potentially fraudulent activity which they have the broad authority to investigate. Licensees must be familiar with the regulatory requirements and ensure that compliance systems are in place to identify any misconduct or failing controls. The penalties for failing to do so are significant and can result in the loss of a business. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2018%2F09%2F23%2F2018-9-23-oregon-regulator-shuts-down-2-marijuana-businesses-for-rule-violations](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2018%2F09%2F23%2F2018-9-23-oregon-regulator-shuts-down-2-marijuana-businesses-for-rule-violations) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). 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