Kevin O'Leary sees 'spectacular' profits in legal marijuana but is afraid to invest

Kevin O'Leary speaks to CTV News Channel from a studio in Toronto, on Monday, Oct. 26, 2015.

Millionaire investor Kevin O’Leary says he sees “spectacular returns” from the legalization of marijuana, but won’t invest because his lawyers have advised him not to do so.

O’Leary told CTV News Channel he’s been researching legal marijuana industry for three years, and recently considered partnering with a hydroponics facility in Vermont but “just can’t take the risk.”

“My attorneys in the U.S. have told me, should I travel to a state like Texas, or Florida, or anywhere where it’s illegal, as a shareholder of an operation that’s distributing (marijuana) over state lines … I could go to jail for 30 years,” he said.

O’Leary added that he believes the drug should be legalized and “taxed heavily, because I think we’re spending a tremendous amount of money … imprisoning people for a drug I think eventually is going to be legalized.”

In the past, O’Leary has expressed concerns that “big tobacco” will put a lot of smaller marijuana outfits out of business. “They have the distribution. They have the grow capacity,” he told BNN last year.

Although he agrees with Justin Trudeau’s plans to legalize marijuana, O’Leary said last week that he has “grave concerns” about the Liberal leader’s plan to raise taxes on those earning $200,000 or more, and that investors are anxious see how Trudeau’s energy policies will affect the industry.