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Massachusetts pot company illegally distributed drugs, forgot to pay taxes

Source: MEGA

May 10 2021, Published 11:41 a.m. ET

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A woman ran an illegal marijuana distribution ring that netted $14 million in revenue, but never paid taxes, according to prosecutors.

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From 2015 to 2018, Deana Martin, 53, ran a marijuana delivery service in Massachusetts under the name Northern Herb. The company claimed to sell medical pot, but did not require proof of a medical marijuana card, according to prosecutors. 

Northern Herb would also deliver to unattended locations where anyone could have taken the drugs, according to prosecutors. 

The company employed at least 25 workers. 

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From May 2016 to July 2018, the company had a total revenue of more than $14 million. But, Northern Herb did not pay taxes or withhold taxes from employees’ wages, according to prosecutors. Many workers were paid in cash and did not pay the IRS. 

Martin pleaded guilty to tax evasion, conspiracy to distribute marijuana, possession of marijuana with intent to distribute and money laundering. She entered her plea during a court hearing this week and will be sentenced at a later date. 

Martin faces up to 65 years in prison and could have to pay millions of dollars in fines, restitution and forfeiture. 


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