MD: Marijuana Panel Surprised By Federal Lawsuit Against Annapolis Dispensary Owner

Ron Strider

Well-Known Member
The commission regulating medical marijuana in Maryland was unaware that it awarded a dispensary license in Annapolis to a man under federal investigation for workplace discrimination for at least three years.

Advanced Alternative Therapies owner David Podrog, former owner of Maritime Car Wash near Annapolis, did not disclose on his initial application to the Maryland Medical Cannabis Commission that he was under investigation by the Equal Employment Opportunity Commission as early as 2014.

Mary-jo Mather, director of administration for the commission, said that following a story Tuesday by The Capital, Podrog's application will be reviewed in light of the EEOC lawsuit filed.

She said all "pre-approved" applicants must still submit "supplemental applications" by Dec. 8. She said at that point, Podrog would have to divulge the investigation.

"That's the reason we have the supplemental application," she added.

In a complaint filed Monday in U.S. District Court in Baltimore, the EEOC charged that Podrog and car wash Manager Kyle Decker discriminated against employees based on their national origin starting in 2006. Hispanic employees were paid less than others, forced to work as servants at Podrog's and Decker's homes, and were subject to degrading work conditions at the car wash on Route 2 just outside Annapolis.

Podrog sold the business to Arizona-based Mister Car Wash in 2015, and has since shifted his focus to the medical marijuana business. Podrog, Decker and the new owners are all named in the lawsuit. None have commented on the allegations.

Larry Adler, Podrog's partner in Advanced Alternative Medicine, said he was unaware of the lawsuit until The Capital story Tuesday. He defended his partner.

"I've known Dave for almost 30 years. I'm not worried about his character. I know him very well," said Adler, former owner of the Serenity Acres substance abuse treatment center in Crownsville.

"I think the fair thing, for Dave's sake, is to let this thing play its course and let it clear itself."

Mather said a criminal background check was conducted on all applicants. A further investigation into Podrog and all other pre-approved applicants that is ongoing should look into the federal lawsuit, "especially now," she added.

Mather said that under the rules set up by the state, Podrog would not have been required to divulge that his previous business was the subject of a federal investigation if he was the sole owner. The rules only require the application to disclose a history administrative or judicial proceedings against any members of previous company's board of directors.

The application for a dispensary was not due until November 2015 and nothing Podrog wrote or signed off on indicated that he was under investigation. His portion of the application was signed on Oct. 28, 2015.

"There's nothing in there that discloses any kind of EEOC involvement," Mather said.

The application was approved, and Advanced Alternative Therapies won zoning approval from Anne Arundel County for a dispensary at 2029 West St.. Work on the building has not started, but there have been significant delays across the state in setting up the growing and distribution of medical marijuana.

Federal court records indicate that U.S. Appeals Court Judge J. Harvie Wilkinson III issued a subpoena in February 2014 as part of the investigation into a discrimination complaint filed by one of Podrog's employees.

The lawsuit may represent another black eye for the commission and its application process.

Gov. Larry Hogan ordered a study in April to determine whether minorities faced disadvantages when looking to participate in the state's medical marijuana industry. No businesses owned by African Americans were approved for the first round of 15 preliminary licenses awarded to grow marijuana for the medical dispensaries.

In addition, a state audit criticized the process by which applications were reviewed through Towson University's Regional Economic Studies Institute. Auditors said the commission paid about 60 percent more per application than previously planned and had to deal with three times as many applications as originally anticipated.

House Speaker Michael Busch said Tuesday afternoon the licenses granted to Advanced Alternative Medicine are part of the wider problems with the process used to grant licenses. He criticized the commission for being inconsistent.

Busch, who represents the district where Podrog's group has a license, stopped short of calling for the commission to revoke Podrog's license but said that is within its power.

"You want people who are in the medical marijuana business to be squeaky clean," he said.

County Executive Steve Schuh declined to comment on the matter, citing ongoing litigation.

Annapolis Mayor Michael Pantelides, who opposed the zoning application for the dispensary on West Street, declined to comment on the lawsuit against Podrog.

"The state approves all licenses for the marijuana dispensary and the city has no say in that decision," he said.

The dispensary approved for Podrog and Adler is one of three so far to come before the county for zoning approval, as required under county law.

Others applications have been submitted by Evolution Wellness LLC in Edgewater and GDP LLC in Linthicum. County planners have recommended against approval for the site in Linthicum, but no ruling has been made.

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