RCMP not investigating Winnipeg cannabis producer that sold unauthorized weed

A Winnipeg cannabis producerwill faceno criminal chargesfrom the RCMP after a third-partyinvestigation revealed it sold unlicensed product.

But Bonify is facing a new challenge: a lawsuit from a formerexecutive who was stripped of his job after the unauthorized product was discovered, alleging he was wrongfully dismissed.

A third-party investigationfoundformer Bonify executiveshired an outside agent to buy what turned out to be illegal product.

The company had itsproducts seized, top executives turfedand sales licence suspendedby Health Canada.

A Health Canadaspokesperson said Bonifypossessed, distributedand soldproduct itbought from an illegal source.

Investigation not necessary: RCMP

RCMPhave determined that a full investigation won't be necessary.

"The review of information has been concluded and the RCMP will not be investigating," the statement said.

Asked for more details, the RCMP said late Monday afternoonit forwarded the "review/findings" to the provincial Justice department.

The province said the response from RCMP"requires further review ...As such, we cannot provide further comment at this time."

George Robinson, who was hired to investigate Bonify and is now their acting CEO, was unawareRCMPwerenot pursuing charges until he was informed by CBC News Monday.

He noted the police never contactedBonifyto seekany of thedocumentation his investigation uncovered.

"I would suggest that there was enough information for them totake a longer look at this thing, but we weren't contacted or asked about it," he said on the phone from Vancouver.

Robinson said the RCMP's decision won't affect the company, which isacting in compliance and continuing to growcannabis as if it werestillselling.

"It doesn't change anything about the way that we're operating in the business."

I think what would have been nice to see is them to put a fingerprint on this thing, to say, 'If it happens again, this is what we're going to do.'- George Robinson, Bonify

Health Canada previouslyissued a recall notice for two strains of Bonify cannabis sold in Saskatchewanin December. The recall prompted Manitoba to suspend the sale of Bonifyproducts.

In response, the company called for athird-party review,led by Robinson, whichfound the company sold unlicensed product at retailers in Saskatoon, Regina and Moose Jaw.

The investigation found that senior managementbulliedfrontline staff into staying quietwhen 200 kilograms of unlicensed cannabis arrived at the Winnipeg facility, he said.Threeexecutives were later dismissed.

Robinson theorized that RCMP is ina tricky spot because there is no precedent of a legal cannabis company facing criminalprosecution.

"From an industry perspective, I think what would have been nice to see is them to put a fingerprint on this thing, to say, 'If it happens again, this is what we're going to do.'"

Ex-employee left in the dark: lawsuit

Meanwhile, Paul Yeoman, Bonify's former chief marketing officer,is suing his former employerfor wrongful dismissal.

Heargues he was dismissed without responding to the allegations oreven being interviewed, despite assurances he would havethe chance. He said he knew of no details about the investigation until he came across news coverage on Dec. 27, 2018, saying that he lost his job.

Yeoman said his reputation was tarnished that day by the publishing ofallegations that heknowingly helped to obtainillegal cannabis and bullied staff members who wanted to speak out.

He adds that Robinson was motivated by self-interest to throw out former executives since his consulting firm,RavenQuestTechnologies Inc., was brought on toinvestigateand later benefited financially by being hired to run the company on an interim basis.

The varied allegations, contained in a statement of claim filed on Friday atManitoba's Court of Queen's Bench, have not been proven in court.

Yeoman is asking for compensationin response to the dismissal which he allegesdamaged his self-worth, self-esteem and caused mental distress, the lawsuit said.

"Bonify reached a conclusion not supported by evidence, which outcome was reached for an ulterior purpose of making the plaintiff a 'scapegoat' for Bonify's alleged failings."

Yeoman addshe did not knowingly participate in any misconduct that resulted in the obtaining or selling of unauthorized cannabis.

"The timing and manner in which he was dismissed lacked good faith and fair dealing and was unduly insensitive," the lawsuit said.

Confidence suspension will be lifted

Robinson, who declined comment on the lawsuit, is confidentHealth Canada will lift the suspension of Bonify's sales license.

The producer appealed the decision last month and received an assurance last week that the federal department is evaluating.

Robinson said a Health Canada inspection in February turned up no issues.

"We continue to supply them the information as if we were an operating business and keep them up to date on what we're up to," he said. "It's just a process. You got to prove where you failed, that [you've fixed it] and you're doing it repeatedly."

In the meantime, Bonify is operating at full capacityand growing and storing new cannabis as if they havecustomers waiting.

He said they could function at this pacefor as long as a year.

"It's not ideal when you have cash burn and no revenue coming in," Robinson said. "You've got to, you know,build up your war room with some money here to make sure that you get through this."

Matt Maurer, a Toronto lawyer who specializes in cannabis legislation, said it's disappointing that no criminal consequences are forthcoming when it seems like something illegal occurred.

"If something improper did happen, one would hope that a licensed producer that operated outside the law would face the consequences just like any illegal dispensary owner," he said. "There shouldn't be two standards."