Former Stitt appointee indicted by federal grand jury for marijuana "ghost licensing"

OKLAHOMA CITY (KOKH) — A metro attorney, whom Governor Stitt once tapped to help his task force on COVID-19 surge planning, was indicted last week by a federal grand jury for what they are calling a "ghost licensing" scheme for black-market marijuana.

The U.S. Attorney's Office for the Western District of Oklahoma revealed an eight-count indictment charging Matthew Stacy, Chong Phu, and Chanh Phu with drug conspiracies.

The indictment alleges Phu, a real estate broker, and Stacy, a politically connected attorney, made false representations on applications for state licenses to operate marijuana farms on behalf of their black-market marijuana trafficker clients.

Under Oklahoma law, to operate a grow facility, one must obtain a license through the OMMA and register with OBN. Grows must also be at least 75% owned by Oklahoma residents.

The federal indictment alleges Phu and Stacy helped clients evade residency requirements when setting up grow operations. Court documents show Phu and Stacy either purchased and helped purchase residents' personal information to use on applications with the OMMA and OBN.

The process has been dubbed "straw ownership" by organizations like OBN.

OBN said it's a process used frequently in black market medical marijuana operations.

The indictment handed down April 2nd also alleges Phu, along with his brother Chanh, served as a "one-stop-shop for marijuana traffickers from other states seeking to set up marijuana grows, many of which operated on the black market."

If found guilty, Stacy, Phu and Chanh Phu all face up to life in federal prison.

During the pandemic, Stacy served on a task force for the Governor's COVID-19 surge planning.

At the time, Stacy was a Lt. Colonel in the Oklahoma National Guard.

Stacy was previously charged in Garvin County court in 2022 for similar counts.