A Little Rock doctor facing allegations of Medicaid fraud and sexual misconduct will transfer his ownership interest in a White Hall medical marijuana cultivator to his wife after gaining approval from state regulators Thursday.
Dr. Alonzo Williams, whose Medicaid payments were suspended in March amid accusations of fraud, had owned 13.93% of Natural State Medicinals. The state Medical Marijuana Commission approved an ownership change yesterday in which Williams’ interest will be transferred to his wife. The transfer will increase the ownership stake of Susan Williams, already an owner of the company, from 24.76% to 38.68%.
In March, the Arkansas Office of Medicaid Inspector General issued a letter referencing Williams and two associated clinics, the Arkansas Advocate reported. The letter said a preliminary investigation had found a credible allegation of fraud, including providing services that were not medically necessary and bills for services that were not rendered.
The state Medical Board voted in October to open an investigation into Williams’ use of prescription drugs for patients’ pain management.
Earlier this week, the medical board postponed a hearing into the case to accommodate the availability of Williams’ expert witness. The board has not suspended Williams’ license.
Williams also faces a civil lawsuit over allegation of a “quid pro quo” sexual arrangement with employees, according to the Arkansas Advocate.
In other business, the Medical Marijuana Commission approved the sale of a Morrilton dispensary Enlightened Cannabis to Will Gladden, market president of Signature Bank in Fayetteville. The previous owners of the Morrilton dispensary were Tamika Edwards of Little Rock and Dustin Shroyer of Naperville, Illinois.
A proposed sale of Good Day Farm Hensley was tabled until the commission’s June 13 meeting after the commission’s counsel from the attorney general’s office said he had concerns with it. The transaction involves the conversion of debt obligations into ownership of the business. Todd Denton is the business’ sole owner, and the proposed transaction would bring on more than 90 owners. The biggest shareholder would be Juliette Dobbs Allen with a 9% stake, according to commission documents.
Two dispensaries notified the commission that they will be changing their names. Enlightened Cannabis of Heber Springs will be changing its name to Bold and Enlightened Cannabis of Arkadelphia will be changing its name to The Grass Station.
The commission also approved annual permit renewals for cultivators, processors, and 37 of the state’s 38 dispensaries. Green Springs Medical did not submit its renewal application for the May meeting, and commission spokesman Scott Hardin said he anticipates Green Springs’ renewal will occur at the June meeting.
The state Alcoholic Beverage Control Division revoked Green Springs’ license earlier this month. The dispensary appealed the decision, which stayed the revocation and allowed the dispensary to continue operating until the matter is given a hearing before the state Alcoholic Beverage Control Board. Green Springs’ appeal could be heard at the next ABC board meeting on June 12 or at the board’s July meeting, Hardin said.