The Justice Department says an Oregon woman can’t use bankruptcy because she works for a staffing agency that recruits employees for the cannabis industry, part of a broader department policy imposing the federal pot ban on individuals whose income is tied to commercial marijuana, the WSJ Pro Bankruptcy reported. The U.S. trustee, a Justice Department bankruptcy monitor, said in papers filed in the U.S. Bankruptcy Court in Portland that chapter 13 filer Holly Christine Adair is violating the federal law outlawing marijuana because the agency she works for, GreenForce Staffing, is paid to place prospective employees at cannabis businesses. The U.S. Trustee Program is a Justice Department unit that polices the nation’s bankruptcy courts. A lawyer for Acting U.S. Trustee Gregory Garvin, whose region includes Oregon, Washington and other northwestern states, made the argument in a motion to dismiss Adair’s chapter 13 case, which she filed in January. Adair sought bankruptcy protection primarily to prevent a bank from foreclosing on her home, said her lawyer, Darin Wisehart. Adair isn’t producing or selling marijuana, but “her activities violate the [Controlled Substances Act] because she is assisting businesses that violate the CSA on an ongoing basis,” Garvin said. Although many states — including Oregon — have legalized adult use and sale of marijuana, pot remains illegal under federal law, which includes bankruptcy.
