Ask lobbyist Mark Habbas about the people supporting the ballot initiative he鈥檚 pushing to make medical marijuana legal in Missouri and he hems and haws.
鈥淰arious people鈥 support the , he says.
Push some more, and Habbas, the spokesman for the effort, offers a variant of the same answer.
鈥淚t鈥檚 people who are passionate about the medical marijuana movement.鈥
Why the secrecy?
It may have something to do with who is behind the initiative, their connections to one powerful politician, and their apparent plans to profit if the initiative ever becomes law. Two of the top officers with the Missourians for Patient Care initiative have received or contracts with boards controlled by 果酱视频 County Executive Steve Stenger. The businessmen are big donors to Stenger鈥檚 campaign, and at least two of the county deals appear to have a connection to the marijuana business. The initiative, if passed, would grant Stenger wide powers to determine who gets the potentially lucrative licenses to distribute and sell medicinal marijuana.
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Secret money
Habbas would not reveal board members of the nonprofit group that is funding the medicinal marijuana effort, but the initiative鈥檚 strategic plan, which has been given to some donors, lists all of them. The Post-Dispatch has obtained a copy of the plan.
The group鈥檚 president is John Rallo, a 果酱视频 businessman who has dabbled in insurance, nightclubs and the construction business for which his family name is most known. The vice president is Michael Kielty, a lawyer who was formerly involved with a different proposal to legalize medicinal marijuana, New Approach Missouri. The secretary is Corey Christanell, a former Anheuser-Busch executive, and the treasurer is former state Rep. Mike Colona, D-果酱视频, a lawyer who doubles as the treasurer of the political action committee by the same name as the nonprofit.
Of seeking to legalize medicinal marijuana in Missouri, only Missourians for Patient Care is shrouded in secrecy. The lack of transparency isn鈥檛 a bug, it鈥檚 a feature, built right into the material shared with potential donors. 鈥淣o donor disclosure required,鈥 reads part of the group鈥檚 strategic plan.
To date, the Missourians for Patient Care political action committee shows $117,000 in donations, all of them from the nonprofit with the same name. It is a common scheme used to conceal donor identities. Donors give to a 501(c)(4) nonprofit that doesn鈥檛 have to file campaign reports. The nonprofit then gives to the political action committee. In this case, the deceit goes a step further. The nonprofit recorded the gifts as 鈥渋n-kind鈥 donations, which means that the nonprofit is also paying all the expenses. That means it鈥檚 impossible for voters to know who is funding Missourians for Patient Care or how it is spending its money.
Habbas argues the secrecy is necessary. Despite the fact that 29 states have approved medical marijuana and others 鈥 including Colorado and Washington 鈥 have legalized recreational use, Habbas says donors are skittish. The other major medical marijuana initiatives are filing campaign reports naming their donors.
鈥淲e set it up that way because most people who are supporters of it don鈥檛 want to be known,鈥 Habbas says. 鈥淭hey just want to keep their donations private.鈥
Some of them might have good reason.
Stenger connections
Three times in the past two years, Rallo has been involved in receiving sweetheart deals from 果酱视频 County boards appointed by or otherwise controlled by Stenger. In two of those deals, Christanell was involved. Together, the two men have given Stenger about $40,000 between their various business entities, which include companies that appear to have a connection to the marijuana industry. Both Christanell鈥檚 3Gems Nutrition, and Rallo鈥檚 B&B Packaging Group, promote a product called 鈥淗eavy Boost,鈥 which various recreational-pot-related publications say enhances marijuana growth.
Last year, the 果酱视频 Economic Development Partnership that is run by Stenger ally Sheila Sweeney executed to an investment group involving Rallo and Christanell for a building the duo own on North Warson Road. The primary tenant of that building is a hydroponic business.
Later that year, the two men were part of an investment group given a massively under-market deal by the 果酱视频 County Land Clearance for Redevelopment Authority for two properties in the Wellston area which, one of the investors said, could be used for a 鈥渄istribution鈥 facility.
And in 2016, the 果酱视频 Port Authority, also run by Sweeney, approved a marketing contract with a Rallo company for improving national perceptions of the Ferguson area. As the Post-Dispatch鈥檚 Jacob Barker reported Monday, about the only evidence of any work on the contract was an opinion piece written for an NBC News website by TV personality Montel Williams, who misspelled Stenger鈥檚 name in the commentary.
What does this have to do with medical marijuana?
That鈥檚 the business Williams is in. His company, , lists Jonathan Franks as the company鈥檚 vice president for communications. Franks鈥 public relations company was referenced as a 鈥渘ational partner鈥 in Rallo鈥檚 bid for the Port Authority鈥檚 marketing contract.
Three years ago, Habbas was walking Williams around the Missouri Capitol introducing him to lawmakers as he pushed a bill to legalize medical marijuana that bears a striking resemblance to the one he鈥檚 now pushing for the ballot. 鈥淚 met Montel through a friend of his,鈥 Habbas said. 鈥淛ohn Rallo.鈥
Habbas, too, has a connection to Stenger. When the lobbyist in 2013 set up his own lobbying company, , it was Stenger, an attorney, who filed the paperwork with the secretary of state鈥檚 office. Stenger is still listed as the registered agent of Habbas鈥 company.
Most of the people involved with Missourians for Patient Care declined interviews. Lobbyists Steve Tilley and Travis Brown, both involved in the initiative, did not return calls. Neither did Colona, Rallo nor Christanell. Tilley is the former speaker of the Missouri House. Habbas for his company. Brown is the founder of Pelopidas Inc., the firm that does most of wealthy financier Rex Sinquefield鈥檚 political work. The initiative lists the address and phone number of one of Brown鈥檚 companies on its campaign finance reports, and he appears on a video promoting the initiative.
Stenger also declined to comment, but he issued a written statement through a spokesman:
鈥淲hile I know John Rallo, Corey Christanell and Mark Habbas,鈥 Stenger said, 鈥淚 have no connection to the Missourians for Patient Care organization or to any effort related to medical marijuana.鈥
Future profits
If the proposal becomes law, Stenger will be plenty connected.
Besides secrecy, the Missourians for Patient Care proposal has two elements that separates it from the other competing proposals: The proposal creates a , so that county executives and mayors will have power over choosing who receives licenses for marijuana dispensaries and distribution facilities. And it limits those licenses to about 1 per 100,000 population, so that those who obtain them can ice out the competition and increase profits.
Rallo and Christanell have already shown they know how to navigate the various boards controlled by Stenger to their advantage. Habbas appears poised to get in on the deal, too. In October, he created a limited liability company called IV ALIVE, whose purpose is to 鈥渂uy and sell any products legal in the state of Missouri and to provide any and all services legally available in the state of Missouri.鈥 One of his partners in the business faced felony drug charges in 2015 after Wentzville police found 鈥 and some marijuana that was growing inside the house.鈥 The charges were dropped on a deferred prosecution.
The attorney who filed the paperwork for Habbas鈥 new venture? The treasurer for Missourians for Patient Care, Mike Colona.
It鈥檚 no wonder he鈥檚 not returning calls.