Of the seven states the Government Accountability Institute (GAI) evaluated for favoritism in the legal cannabis industry, four are under investigation by the Federal Bureau of Investigation, including California, Florida, New York, and Missouri.
Medical marijuana was legalized by Missouri voters in Novenber 2018 and five months later, in March 2019, the FBI was already questioning Missouri officials about the new program.
“What’s interesting about Missouri is how early the FBI showed up,” said Steve Stewart, a GAI researcher. “We’ve seen in California, Florida, and Illinois a lot of different people making money off of the marijuana business but, in Missouri, it seems like Steven Tilley’s name kept coming up everywhere. So, Missouri is a little different in the sense that cronyism seems to be focused on Tilley's circle.”
Steven Tilley, a Republican, is the former Speaker of the House turned lobbyist whose first client after leaving public office was Gov. Mike Parson, according to GAI's Cannabis Cronyism report.
“Their history goes back to 2010," Stewart said. "They were buddies who got together and got what they needed to get into place to financially benefit from legal medical cannabis."
Regarding why Gov. Parson was included in the report, Stewart said it’s because he made one of the most important assignments when he appointed Lyndall Fraker as director of medical marijuana with the Missouri Department of Health and Senior Services (MDHSS).
Fraker was a Republican member of the Missouri House of Representatives from 2010 until 2018.
The Missouri Department of Health and Senior Services has declined to comment on the story.
“As head of the medical marijuana group, Fracker is issuing licenses and as we started tying ends together, we discovered a close-knit of Republicans who secured the right positions so they could apparently pursue lobbying opportunities,” Stewart said.
The report states that the circle of close-knit Republicans includes Robert Knodell who was executive director of the House Republican Campaign Committee for four years. In 2018, Gov. Parson named Knodell his deputy chief of staff, according to media reports.
“Based on our report, it looks like there's a lot of dealing among friends and people who have been in the halls of power related to marijuana,” Stewart said.
The GAI investigation further found that Gov. Parson received $68,000 in campaign donations from Tilley and paid $185,000 to consulting companies controlled by Tilley and his family.
“Parson hired Tilley’s sister's consulting firm, which just goes to show how the money moves to friends and family,” Stewart said
Although the practice is not illegal, Stewart believes cronyism is a question of ethics.
“Just because it's not illegal, doesn't mean it's in the best interest of the people in Missouri,” he said. “If you were giving out marijuana licenses while following the rules, that’s fine but if you're giving preferential treatment to people who have access, it's different.”
As of July 2020, reports indicate the FBI is still investigating Missouri's marijuana program.
"Steve Tilley was identified as a target in the FBI investigation and there's also a government oversight committee of the Missouri House that began investigating the licensing process late last year," Stewart said. "There's a lot going on."
Gov. Parson, Tilley, and Knodell did not immediately respond to requests for comment.