Medical marijuana tax theft leads to Oregon Department of Revenue employee arrest

Klamath Falls, Ore. – A supposed missed tax payment by a medical marijuana dispensary owner in Klamath Falls leads to the arrest of an Oregon Department of Revenue employee.

Due to federal regulations, Ed Medina of the ‘A Better Way Medicinal Alternative’ dispensary has to pay his taxes by way of money orders.

“The payment due for December, we sent in January.”  Notes Medina.  “We were notified about a month later that the payment wasn’t received.”

The Oregon Department of Revenue sent Medina a letter demanding payment.

Medina contacted postal inspectors, and police.  “In the process, I had gotten copies of the money orders from Western Union, where I had purchased them – and so we had the names and addresses of the folks who cashed the money orders, obviously they had been altered.”

Thanks to Medina’s book keeping records, Salem Police were able to get a major break in the case.

“I was notified (Tuesday) that there was an arrest in the case.”  Medina stated.   “And that it was actually an Oregon Department of Revenue employee that was stealing tax payments.”

The name of the person arrested hasn’t been released.

The information will be reviewed by the Marion County District Attorney.

Meanwhile, Ed Medina is pleased.  “It does feel pretty good that the good guys actually came out on top this time.”

The investigation into the incident is continuing.

Medina says Salem Police told him it appears there may have been other victims.

Bob Estabrook of the Oregon Department of Revenue has confirmed that an employee was arrested Tuesday.


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