051519 SCBEO, ETH 19-03

• Case Date: May 15, 2019
• Court: South Carolina

ETH 19-03 Ethics Advisory Opinion 19-03 South Carolina Bar Ethics Opinion Ethics Advisory Opinion May 15, 2019          UPON THE REQUEST OF A MEMBER OF THE SOUTH CAROLINA BAR, THE ETHICS ADVISORY COMMITTEE HAS RENDERED THIS OPINION ON THE ETHICAL PROPRIETY OF THE INQUIRER'S CONTEMPLATED CONDUCT. THIS COMMITTEE HAS NO DISCIPLINARY AUTHORITY. LAWYER DISCIPLINE IS ADMINISTERED SOLELY BY THE SOUTH CAROLINA SUPREME COURT THROUGH ITS COMMISSION ON LAWYER CONDUCT.          South Carolina Rules of Professional Conduct: 8.4          Factual Background: South Carolina lawyers A and B want to purchase an interest in a corporation engaged in cannabis-related undertakings—including infrastructure, construction, cultivation, production management, and distribution. This is an existing, publicly traded corporation that provides similar services to other cultivation and production operators in states where the cannabis industry is authorized under state law.          Lawyers A and B acknowledge the contemplated ownership interest is in a company whose conduct is illegal under federal law and may result in criminal liability under the Controlled Substances Act (18 U.S.C. §2) or money laundering (18 U.S.C. §§1956, 1957).          Question: Does a South Carolina lawyer’s ownership interest in a cannabis-related business amount to criminal conduct that “reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer” or otherwise constitute “a criminal act involving moral turpitude”?          Summary: While we do not express opinions on questions of law, the Committee cautions South Carolina licensed attorneys from participating in activities that are illegal under state or federal law, as criminal activity may constitute a violation of Rule 8.4, RPC, Rule 407, SCACR.          Discussion: The Committee does not express opinions on questions of law, such as whether the ownership interest Lawyers A and B are seeking in the cannabis-related corporation constitutes a violation of federal or state criminal statutes or subjects them to criminal liability as officers, directors, agents, or shareholders for crimes committed by...