Atlantic City faces $5 million lawsuit over cannabis industry misconduct

A cannabis shop owner, Victor Diaz, has filed a $5 million lawsuit against the city of Atlantic City, alleging he was a victim of a racketeering conspiracy and illegal conduct. Diaz, owner of Sweet Leaf Dispensary, claims his business was forced to close due to city interference.

The lawsuit follows federal bribery charges against Kashawn ‘Kash’ McKinley, who served as the city’s point man for the cannabis industry. According to the US Attorney for the District of New Jersey, McKinley is accused of soliciting and accepting bribes, including more than $20,000 in cash and marijuana, in exchange for official assistance with business openings and fee resolutions.

In one specific allegation, McKinley reportedly requested that a cannabis shop owner assault another individual in exchange for official help. While McKinley has been suspended without pay following the federal charges, he has previously maintained that his goal was to help locals gain a stake in the industry ownership.