Medical Marijuana Inc (MJNA)

[GDorn]

Kannaway Got Booted by their Bank

A recent email:

Dear Valued Brand Ambassador:

First and foremost, we would like to apologize if you are experiencing an unexpected payment issue. We were notified by our bank that there was fraudulent activity happening to our account, and as a result we were forced to close the account immediately to control the situation. Unfortunately, that unforeseen closure will affect all un-cashed checks issued prior to June 6, 2014.

In brief, all future checks will be issued from a new account; further, we anticipate that our Kannaway direct deposit Visa cards will be available to all BAs within the next 30 days (once the API coding is completed for all systems).

We ask you to please only contact Kannaway Support if you have checks from Kannaway that you have not yet cashed (issued prior to June 6) or if you have accrued any overdraft fees, which we will reimburse immediately when presented with relevant bank statements.

Again, we sincerely apologize and thank you for your understanding and patience. We are working to settle this unanticipated issue promptly, and will let you know immediately when it is resolved.

With our gratitude,

Your Kannaway Headquarters Team

Not sure what to make of that. MLM start ups are considered "high risk" from a merchant processing standpoint but I don't see how KWay's comp plan is open to the type of abuse that would get them hit for "fraudulent activity."

I know they've been having sporadic product fulfillment issues which might have lead to some complaints but any reasonable customer service effort should have been able to resolve such issues before people took those complaints to the merchant processors.

We may never know what is really behind this, Kannaway is a new era MLM company with almost no requirement to report on issues like this accurately and even less desire to do so.