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CannTrust CEO was warned over illicit pot growing: former compliance worker

A former director of quality and compliance at CannTrust Holdings Inc. says he warned the company’s chief executive that Health Canada could levy penalties if the firm grew pot in unlicensed rooms at its Niagara, Ont. facility.

In the months leading up to Health Canada finding pot growing in unlicensed rooms, Graham Lee said Tuesday that he told Peter Aceto he couldn’t say what the exact consequences could be, but knew the government regulator had previously issued warning letters and handed out penalties.

For example, Lee said Health Canada reviewed CannTrust’s inventory more extensively after it discovered the company using a storage facility at its Vaughan, Ont. location contrary to licensing.

“In general, Health Canada was there every day checking up on the inventory,” Lee recalled.

Though he warned Aceto about consequences, Lee said he didn’t give him advice about whether to disclose alleged unlicensed growing to the public or Health Canada.

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