A federal grand jury in Portland, Oregon, returned an eight-count indictment last week against Rosa Cazares, the CEO of cannabis company La Mota LLC. She is charged with failing to pay more than $1.5 million in taxes.
The grand jury found that Cazares failed to collect, truthfully account for, or pay over required trust fund taxes for eight consecutive quarters from March 2020 to December 2021. The total amount of trust fund taxes due is $1,542,413.
Each quarter of nonpayment constitutes a separate criminal count under federal law. That accounts for the eight counts in the indictment.
The case is being handled at the federal level.
Cazares has not been convicted, and the indictment represents criminal charges rather than a finding of guilt.
According to the U.S. Attorney’s Office, Cazares oversaw the financial affairs of both La Mota and 503 Staffing, a payroll processing company. She was responsible for withholding federal income taxes and Social Security and Medicare taxes from employee wages.
Those withheld funds were required to be remitted to the Internal Revenue Service. Prosecutors allege that obligation was not met over the eight-quarter period.
Trust fund taxes are funds withheld from employee paychecks and held on behalf of the government. The indictment centers on the failure to turn those funds over to the IRS.
If convicted, Cazares faces up to five years in federal prison. She also faces potential fines and restitution.
Cazares was the subject of 2024 reporting by Willamette Week that found she and her partner Aaron Mitchell had expanded their cannabis businesses despite state and federal tax liens.
The pair had also been sued by former business partners over unpaid bills and business deals gone awry, according to that reporting.
Willamette Week also reported the couple signed a $10,000 contract with then-Oregon Secretary of State Shemia Fagan for unspecified contracting work. The reporting led to Fagan’s resignation.
The case will now proceed through the federal court system in Oregon.
Audit Finds Gaps In Colorado Marijuana Testing Oversight A Colorado state audit has found significant gaps in the regulatory framework…
Baltimore Mayor Signs Padlock Bill Targeting Illegal Cannabis Shops Baltimore Mayor Brandon Scott signed a bill last week giving the…
This week in cannabis, the debate over hemp versus marijuana policy took center stage as the Marijuana Policy Project defended…
Campaign Lets Public Ship THC Drinks To Congress Cannabis beverage company Herb Light is launching a "Cheers Against Prohibition" campaign…
NORML Files Amicus Brief in Sixth Circuit Members of the NORML Legal Committee, led by attorney William Swor of Detroit,…
A Twenty Dollar Lens On A Billion Dollar Economy Buttermilk Press announced the premiere of WEED MONEY on October 10,…
