Monday, September 8, 2008

Ore. marijuana center closes over squabble

02:06 PM PDT on Sunday, September 7, 2008

Associated Press


EUGENE, Ore. - The medical marijuana group Compassion Center is trying to regroup after an internal power struggle that peaked when one board member removed patients' medical files, sued to dissolve the organization and tried to start her own rival group.

The center, founded in 2001, closed in July, leaving about 2,000 area marijuana cardholders with no place to turn for advice and support.

As part of a court-approved settlement, the two battling board members agreed to resign. Four newly appointed members will pick a fifth.

The center should reopen soon, said Casey Ferguson, a former board member who was reappointed.

The center offered classes and support for people seeking a marijuana card from the Oregon Medical Marijuana Program as well as for cardholders.

At clinics, a doctor would examine applicants. Volunteers offered tips on growing marijuana, finding a doctor willing to sign an application, and helped connect cardholders with people who could legally grow marijuana for them.

Oregon permits cardholders to use or grow marijuana for medical purposes.

A doctor must attest that the patient has at least one of nine qualifying medical conditions including cancer, glaucoma or HIV/AIDS.

While 13 states have such a law although the drug remains illegal under federal law.

The dispute in Eugene involved board members Brenda Alley and Mike Sage. In June, they were the only two members left. State law requires nonprofit groups to have at least three board members or cease operations.

In June, Alley contacted the state Department of Justice and expressed concern that up to $300,000 of the center's funds were missing, according to an Aug. 5 letter from Elizabeth Grant, the attorney in charge of the DOJ's Charitable Activities Section, to attorneys for Sage and Alley.

An earlier audit and a review of five years of financial reports indicated the group had little beyond that needed for routine operation, Grant wrote.

In 2007, the group reported it had $25,247 in cash, income of $161,037 and expenses of $147,968.

"We do not understand the factual basis for Ms. Alley's assertions that $300,000 in charitable assets is missing or unaccounted for," Grant wrote.

Court documents filed by Sage say Alley entered the offices in July, removing patient medical files and forcing the closure.

Ferguson said the records have been recovered.

Alley told the Eugene Register-Guard that she removed the files on instructions from her attorney and the state Department of Justice, held them only briefly and that the other board member had access to them.

She said she had volunteered at the center for seven years. "I was trying to keep the organization as straight and honest and as pristinely clean as possible," she said.

On Aug. 18, Alley filed papers with the Secretary of State's office to establish a new nonprofit corporation called Green Cross of Oregon.

Some similar groups in other regions have used that name. Alley declined to discuss why she incorporated a new organization.

Sage said she tried to engineer "a hostile takeover" and was "trying to take over the center, and do things her way, and trying to fire the crew" of volunteers. "I wouldn't let her."

Jaqui Lomont, center manager for four years until resigning in May, said there were rumblings of trouble on the board when she left.

The turmoil is heartbreaking, she said, "because we know there's a lot of patients who need our services."


http://www.nwcn.com/statenews/oregon/stories/NW_090708ORN_marijuana_center_SW.53489ec3.html

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