Cambridge, Massachusetts, September 11, 2018: Galen Diligence, the legal cannabis industry's leading investigative due diligence consultancy, is adding staff and expanding services to meet increasing demand from investors, operators, and advisors in the US and Canada.
Since 2016, Galen Diligence has specialized in conducting in-depth due diligence on senior executives and investors in the cannabis industry. The firm provides a unique service that combines the due diligence methodologies used by established Wall Street firms to vet executives and directors with a deep understanding of the cannabis industry's complicated regulatory context.
"There are so many high-integrity operators in this industry," said Tanya Hoke, Founder and Managing Director. "But because of the 'green rush' mentality and a lack of access to traditional banking, it’s also attractive to fraudsters and money-launderers who want to take advantage of this moment of transition. We're committed to supporting the integrity and sustainability of the legal cannabis industry by helping our clients steer away from bad actors looking to exploit them."
Galen Diligence's business has grown with the rapidly-expanding legal cannabis industry. According to Arcview Market Research and BDS Analytics, the total economic output from legal cannabis in the US alone was $16 billion in 2017, and is set to hit $40 billion by 2021. "Investors come to us when they've identified an opportunity – a cultivation operation, a dispensary, or an ancillary business – and want to make sure that there aren't issues in that company's management that might pose a risk to the success of the investment," said Hoke. "We focus on identifying risks related to fraud, money-laundering, and reputation."
The firm also works with licensed businesses to vet possible investors, since many states require licensees to disclose the identities of their outside investors to regulators. Hoke explained, "The last thing you want is to have a regulator come back to you and say that an investor you've spent a lot of time with – or whose money you've already taken – can’t be involved in your business because of an integrity issue you didn't know about. We help save companies time, money, and embarrassment by vetting investors early in the process."
The cannabis industry is in transition, and having a due diligence advisor who understands the larger context of the industry is vital. "We're not going to set off alarms if the management team we're vetting has convictions for cannabis possession or distribution prior to legalization in their state. As long as state regulations allow them to participate – and we're strong advocates for social equity provisions in state regulations – then a prior conviction is evidence of experience, not evidence that the individual is an unreliable business partner," explained Hoke, who also serves on the National Cannabis Industry Association’s State Regulations Committee.
In addition to supporting investors and operators, Galen Diligence has expanded its services to industry advisors such as law firms and accounting firms that work closely with cannabis industry clients. Hoke explained, "As the industry has grown, advisors to cannabis businesses have become more aware of the risks they face if they take on a client that doesn't share their commitment to compliance and integrity."
To support its growing client base, Galen Diligence is pleased to welcome Gillian Rochkind to the firm as a Consultant. "Gillian's prior experience as an investigative journalist is a great addition to our existing capabilities in fraud and risk assessment," said Hoke.
About Galen Diligence
Headquartered in Cambridge, Massachusetts, Galen Diligence is the cannabis-industry focused practice of Belem Group, LLC, a woman-owned corporate investigations and risk management firm founded in 2013. The firm has been working with clients in the legal cannabis industry across the US and Canada since 2015. For more information, please visit www.galendiligence.com or contact info@galendiligence.com.
