U.S. Treasury officials seized accounts belonging to two medical marijuana dispensaries as part of an investigation into possible money laundering, according to media reports.
Local media outlets are reporting that the accounts belonged to the One Love Wellness Center in Sacramento, Calif., and the Mary Jane's Wellness dispensary in Gold River, Calif.
The CU which kept the deposits was reported to be the 151,000-member, $1.8 billion SAFE Credit Union, headquartered in North Highlands, Calif. The credit union has not yet returned calls for comment about the report.
According to media accounts, the Internal Revenue Service seized the accounts after the CU allegedly alerted government officials that it suspected the dispensaries of having made deposits in way that was meant to conceal them from federal suspicious reporting requirements.
The controversy arises about a year after the legalization of medical marijuana dispensaries in some states threw pushed the question of whether or not to accept their deposits into the laps of some credit unions.
Several other credit unions in California and Colorado declined to accept the deposits, citing their unclear legal status.
According to media reports, no criminal charges have been filed in the case.
