Webster Groves employees misused city funds at cannabis store, strip clubs, state probe finds

Missouri state investigation reveals city employees diverted public money to cannabis retailer and adult entertainment venues.

FILE — police lights · Tony Webster / CC BY-SA 2.0

A state probe has found that Webster Groves city employees misused municipal funds at a cannabis store and strip clubs, according to reporting by KSDK. The investigation suggests potential governance lapses at the municipal level amid Missouri's maturing regulated cannabis market, which now supports 238 open retail locations statewide.

The incident underscores compliance and oversight challenges separate from the cannabis regulatory framework itself. Missouri's cannabis tax revenue has grown substantially—reaching $255 million year-to-date as of February—but municipal implementation and employee conduct remain distinct accountability issues.

Watch for whether this prompts Webster Groves or the state to implement additional financial controls or audit procedures for city spending tied to cannabis retail operations and licensing.