State grants ‘social equity’ cannabis license to man with troubling criminal past

Highlighted in the media as one of Minnesota's first cannabis retailers, his record includes a charge for helping a teenage girl he was allegedly having sex with run away.

Jacob Schlichter poses with Gov. Tim Walz during a May 2023 bill signing for Minnesota's recreational marijuana law. (Jacob Schlichter)

Minnesota just handed one of its first recreational cannabis licenses to Jacob Schlichter, owner of The Smoking Tree in Albert Lea.

Schlichter was set to operate one of the city’s two cannabis retailers, but the Albert Lea City Council voted 4-3 this week against registering The Smoking Tree, which would have become the city’s first recreational cannabis dispensary and the first in Minnesota located off tribal land.

The decision came days after the Minnesota Office of Cannabis Management (OCM) granted a microbusiness license to Schlichter on July 17.

According to the Albert Lea Tribune and KIMT3, councilors cited concerns over a lack of local control in the licensing process.

City Attorney Joel Holstad warned that blocking the registration could lead to costly litigation from the state.

Despite the rejection, city officials have scheduled another vote for Aug. 11, giving Schlichter and his business a second shot at selling pot.

“It’s a hiccup, a bump in the road, but it’s clear the city council and staff are working to find a solution,” Schlichter told KIMT3.

Hailed as a model licensee, Schlichter’s record raises concerns

Schlichter is no stranger to the local media spotlight. He was recently spotlighted in a Fox 9 report as a “social equity microbusiness owner” aiming to make the world a better place through marijuana.

“People in the cannabis industry are building libraries, building schools, and just overall upgrading their communities,” Schlichter told the outlet.

But while Schlichter is being held up as a model licensee in Minnesota’s cannabis industry, a closer look at his past reveals a troubling history — one that no other media outlet has reported on.

His record includes a charge for helping a teenage girl he was allegedly having sex with run away, repeated probation violations, and a trail of bizarre lawsuits.

In 2016, at age 20, Schlichter was charged with felony deprivation of parental rights after he drove a 16-year-old girl from Texas — whom he had first met online when she was just 12 — to his Minnesota home, court records say.

The girl reportedly told police they were in a sexual relationship and had planned her escape together. Her mother told investigators she had previously banned Schlichter from their home and involved law enforcement.

Though the felony charge did not result in a conviction, Schlichter later pled guilty to contributing to the need for child protection or services — a gross misdemeanor charge that was downgraded to a misdemeanor, records show.

According to court records, Schlichter was placed on probation but repeatedly violated its terms and made “continued attempts to manipulate his supervision.”

A judge later imposed strict new conditions, including banning Schlichter from all contact with minors and mandating that he sign medical releases so probation could verify his use of any controlled substances, including medical marijuana.

In 2018, a judge eventually revoked his probation and sentenced him to 30 days in jail.

Current statutes narrow which offenses block licensure

While the details of Schlichter’s past may raise red flags for the public, under Minnesota’s current cannabis licensing laws, not all convictions lead to automatic disqualification.

Josh Collins, communications director for the OCM, told Alpha News the agency outlines specific disqualifying criminal offenses for cannabis licensure. He referred Alpha News to Minnesota Statutes section 342.15, subdivision 2, and Minnesota Rules part 9810.1001.

“Presuming his background check does not turn up any of the offenses specified in statute, he would be fine,” Collins said in response to Alpha News’ inquiry about Schlichter’s application last month.

Lawsuits: Allegations of grooming to stolen sand from Burning Man

In a recent Voyage Minnesota profile, Schlichter mused on life’s deeper meaning.

“The two promises of life are that we all face challenges and that we eventually die,” he said. “I don’t want to get lost chasing money, status, or happiness.”

Yet between 2022 and 2024, Schlichter filed at least five lawsuits against various individuals and organizations — all of which were ultimately dismissed.

In one lawsuit, Schlichter accused a former employer of trying to groom him. In the court filing, he claimed, “Tony has sexually harassed me and made it clear he wanted to get me drunk to rape me.”

Schlichter also accused the man of stealing his “sand from Burning Man” — which he valued at $2000.

In another lawsuit, Schlichter claimed a woman named Tiffany owed him nearly $700 for movie tickets, games, and other expenses — including what he described as “food n stuff” in the court document.

The OCM has a webpage tracking cannabis business license applications, breaking down the numbers by license type and current status. There are currently nine licensed microbusinesses.

Schlichter did not reply to Alpha News’ request for comment.

Jenna Gloeb

Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.