Atlantic City Official, School Board Member Charged in Federal Cannabis Bribery Case

Prosecutors allege Kashawn McKinley solicited more than $20,000 in cash and marijuana, helped a cannabis business obtain reduced city fees and directed its owner to assault another person.

ATLANTIC CITY, N.J. — An Atlantic City official who helped oversee the city's emerging cannabis industry is facing federal corruption charges after prosecutors accused him of soliciting cash, marijuana and even an act of violence in exchange for assisting a cannabis business owner with municipal licensing and fees.

Kashawn McKinley, 42, the city's director of constituent services and a member of the Atlantic City Board of Education, was charged Thursday, Sept. 24, with honest-services fraud and two counts of soliciting bribes, according to U.S. Attorney Robert Frazer.

McKinley made his initial appearance Thursday before U.S. Magistrate Judge Sharon A. King in federal court in Camden.

Federal prosecutors allege McKinley solicited more than $20,000 in cash and marijuana in exchange for helping a cannabis business owner open a business and resolve fees owed to Atlantic City.

The allegations include a payment connected to obtaining a lower municipal licensing fee and a separate incident in which prosecutors say McKinley directed the business owner to physically assault another person as payment for his assistance.

McKinley is presumed innocent unless and until proven guilty.

Federal Complaint Details Alleged Payments

According to federal investigators, the alleged scheme began in 2022, when McKinley offered to help a cannabis business owner navigate the city's licensing process.

During a meeting in a parking lot outside an Atlantic City restaurant, McKinley allegedly solicited more than $20,000 in payments in exchange for his assistance.

Investigators say McKinley received the money in two payments over the following months.

Federal prosecutors also allege McKinley received marijuana from the business owner as part of the arrangement.

One of the central allegations involves the classification of the cannabis business under Atlantic City's municipal licensing system.

According to the U.S. Attorney's Office, McKinley received a bribe payment for helping the business obtain a microbusiness classification rather than being treated as a standard cannabis business.

The classification reduced the business's annual mercantile license renewal fee from $25,000 to $2,500, according to prosecutors.

That represented a $22,500 difference in annual municipal licensing fees.

Prosecutors Allege Assault Was Demanded as Payment

The federal complaint includes an allegation that McKinley sought payment in the form of violence rather than money or marijuana.

According to prosecutors, McKinley directed the cannabis business owner in October 2025 to assault another person in exchange for his assistance in resolving the owner's fee disputes with Atlantic City.

Investigators allege the business owner subsequently showed McKinley what appeared to be a photograph of the injured person.

McKinley allegedly expressed satisfaction and reassured the business owner that the city's fee disputes would not be a problem.

According to the U.S. Attorney's Office, McKinley told the business owner:

"You don't have to worry about nothing."

The Justice Department did not identify the alleged assault victim in its public announcement.

Alleged $6,000 Payment Followed City Refund

The federal complaint also describes a separate transaction involving a refund owed to the cannabis business.

According to a report by New Jersey 101.5 citing the federal complaint, the business owner told McKinley in January 2026 that a $25,000 refund remained outstanding following the business's reclassification.

McKinley allegedly responded that he would work to resolve the issue and expected a portion of the money.

The complaint describes a subsequent exchange in which McKinley told the business owner that the refund would appear on Atlantic City Council's Feb. 18 agenda.

According to the report, council approved a refund exceeding $25,000, and the business owner received a check approximately two weeks later.

Investigators allege the business owner subsequently gave McKinley an envelope containing $6,000 in cash on March 3 as a payment connected to the refund and the resolution of tax issues.

The alleged transaction raises questions about the city's procedures for approving cannabis-related fee reductions and refunds.

The federal charges against McKinley do not establish that City Council members or other municipal employees knowingly participated in any alleged bribery scheme.

McKinley Played Prominent Role in City's Cannabis Industry

McKinley's involvement in Atlantic City's cannabis industry extended beyond his position as director of constituent services.

The city's official website identifies him as a contact for businesses seeking information and assistance through the Atlantic City Cannabis Commission.

In April 2023, Mayor Marty Small announced that the city had issued its first adult-use recreational cannabis business license, allowing MPX New Jersey to begin recreational marijuana sales.

At the time, the city identified McKinley as a member of its Cannabis Review Board, which was formed to help guide the development of the local industry.

The board also included City Councilwoman Stephanie Marshall and other municipal officials.

McKinley publicly praised the city's cannabis initiative during the announcement.

"We have a lot of hard work to do, but this is another step in the right direction to making Atlantic City the East coast's cannabis hub, which is our goal," McKinley said in the city's April 19, 2023, announcement.

The city's published materials establish McKinley's official involvement in cannabis development, but they do not establish that the mayor or other Cannabis Review Board members were involved in the conduct alleged in the federal complaint.

McKinley Also Serves on Atlantic City School Board

In addition to his municipal position, McKinley is an elected member of the Atlantic City Board of Education.

School district records show he won another three-year term in the November 2025 election, receiving 4,157 votes. The district's official website continues to list him among its board members.

The federal allegations concern McKinley's municipal activities and his dealings with a cannabis business owner, not his responsibilities as a school board member.

Charges Carry Substantial Potential Prison Sentences

McKinley faces three federal charges.

The honest-services fraud charge carries a maximum potential sentence of 20 years in prison and a fine of up to $250,000.

Each of the two bribery charges carries a maximum potential sentence of 10 years in prison and a fine of up to $250,000.

Those are statutory maximum penalties, not a prediction of the sentence McKinley would receive if convicted.

The investigation was conducted by special agents assigned to the FBI's Atlantic City Resident Agency and its Atlantic City Public Corruption Task Force.

The government is represented by Francesca Liquori, senior trial counsel for the U.S. Attorney's Office's Special Prosecutions Division, and Assistant U.S. Attorney Jena Tiernan.

Federal Public Defender James McGuire is listed as defense counsel.

The charges remain allegations, and McKinley is presumed innocent unless and until proven guilty.