Health Canada is a government ministry. As such, they are bound by statute. Nowhere under s. 26 of the Marihuana for Medical Purposes Regulations, SOR/2013-119, grounds for refusal, does it authorize the Minister to refuse to grant a license due to the actions of a family member (in this case, charges were dropped anyways). The Minister is not authorized to act outside of the scope of what the legislation grants him jurisdiction to do.
Unless there's some aspect of Canadian law that I'm unfamiliar with that you can specifically point to, you should just give it up.