Feds Continue Attack on Medical Marijuana Dispensaries & Their Landlords in CA & CO

The federal crackdown on state legal medical marijuana dispensaries continues in California and Colorado.  In the fall of 2011, the two U.S. Attorneys for the State of Washington sent letters to 40 landlords that leased to medical marijuana dispensaries and threatened to take legal action to confiscate their land if they did not cancel their leases with the dispensaries.  Would be Arizona dispensary owners and their prospective landlords should read the following stories:

  • Feds continue crackdown on CA pot dispensaries
  • Fed pot crackdown hits Colo. shops near schools – “Federal officials on Thursday began a California-style crackdown on medical marijuana dispensaries in Colorado that targets those located near schools . . . . U.S. Attorney John Walsh said 23 dispensaries within 1,000 feet of schools have until Feb. 27 to shut down or face federal penalties, which can include asset seizure or forfeiture of property. The warning letters dated Thursday were being sent to dispensary owners and their landlords.”
  • Extensive Colo. pot rules don’t prevent crackdown – “U.S. Attorney John Walsh in Denver sent letters this week to 23 dispensaries near schools telling them to shut down or else. The warnings are the strongest message to date that federal law enforcement won’t tolerate commercial marijuana sales in Colorado.”
  • Fed med marijuana crackdown may come to Colorado – A December 14, 2011, story that appears to have predicted this Colorado crackdown.  “Federal authorities are considering a statewide crackdown on medical marijuana businesses in Colorado in the first sign that a coordinated offensive against the industry is expanding from California.  A law enforcement official told The Associated Press on Wednesday that such an enforcement action is under consideration for Colorado early next year
By |2017-02-12T07:38:04-07:00January 18th, 2012|California News, Colorado News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Continue Attack on Medical Marijuana Dispensaries & Their Landlords in CA & CO

Mendocino County Suspends Pot Permit Program

Associated Press:  “Mendocino County’s permit process for medical marijuana cultivation has been suspended pending the outcome of a Southern California court case that challenges the legality of issuing permits for activities that are barred under federal law. “

By |2017-02-12T07:38:03-07:00January 10th, 2012|California News, Stories & Articles|Comments Off on Mendocino County Suspends Pot Permit Program

Why has the Obama Administration declared WAR on Medical Marijuana?

The New Republic:  “When you get a new car, you start noticing the same model all over the highway. It’s the same way when you figure out what California’s marijuana dispensaries look like—green crosses and signage about “medicine” and “420” start popping up all over the City of Angels: On your commute to work, in your neighborhood, around the corner from your favorite restaurant. To put it bluntly, it’s not hard to find weed in California. But that all might be about to change. The state’s four U.S. Attorneys are gamely trying to alter the broadly popular status quo with arrests and threats of prosecution and property seizure for landlords who rent to dispensaries, a campaign announced in a rare joint press conference in October. Medical marijuana advocates call it an “intense crackdown” and have launched a lawsuit claiming the federal attorneys’ tactics violate California’s tenth amendment rights.”

By |2015-04-06T18:52:32-07:00November 9th, 2011|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Why has the Obama Administration declared WAR on Medical Marijuana?

Feds Target a Lender that Holds a Mortgage on Land Used by a Medical Marijuana Clinic

ABC News:  “In its effort to shut down California’s booming medical marijuana dispensaries, the Justice Department is seeking to seize the property where the clinics are based, even going after at least one bank that holds the mortgage on a clinic.  Chase bank received a letter to evict the Marin Alliance for Medical Marijuana, according to Greg Anton, attorney for the clinic. The bank owns the note on the building in Fairfax, Calif.  According to Anton, the bank received a similar letter from U.S. attorney Melinda Haag for the northern district of California that was sent to the Alliance’s landlord on Sept. 28 and other medical marijuana dispensaries. The letters threatened that unless the owners evicted the cannabis clinics within 45 days, they could face criminal action.”

By |2012-05-12T14:40:56-07:00October 28th, 2011|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Target a Lender that Holds a Mortgage on Land Used by a Medical Marijuana Clinic

Daily News Editorial: Confusing State, National Pot Policies must be Reconciled

Daily News:  “THE medical marijuana laws never have been as simple as California voters intended. Now, though, the tangle of federal, state and local policies is getting downright silly. Before something really bad happens, authorities must nip this confusion – pardon the expression – in the bud.  Fifteen years after Prop. 215 made marijuana for medical use exempt from anti-drug laws, the story is going five directions at once.  The Obama administration announced a stepped-up effort this month to shut down dispensaries that purport to sell medical marijuana but actually deal recreational pot for big money. U.S. attorneys also are considering action against media that accept dispensaries’ ads.”

By |2017-10-07T09:54:53-07:00October 24th, 2011|California News, Stories & Articles|Comments Off on Daily News Editorial: Confusing State, National Pot Policies must be Reconciled

Feds Target Leader of Marijuana Legalization Movement

The Bay Citizen:  “As the federal government’s crackdown on the state’s medical marijuana industry expands, the Department of Justice has targeted Richard Lee, the leader of the movement to legalize pot in California, The Bay Citizen has learned.  U.S. Attorney Melinda Haag sent a letter to the landlord of Lee’s medical marijuana dispensary, Coffeeshop Blue Sky, ordering its eviction, according to people familiar with the situation.”

By |2017-10-07T09:54:52-07:00October 22nd, 2011|California News, Federal Dispensary Attacks, Marijuana Crimes|Comments Off on Feds Target Leader of Marijuana Legalization Movement

Feds Threat gets Results as California Pot Shops Close

AJC: “A letter from federal prosecutors accomplished what nearly $600,000 in legal fees couldn’t do in this Orange County suburb: it shut down medical marijuana shops.  Two weeks after California’s four U.S. attorneys announced they were cracking down on dozens of operations across the state growing and selling medical pot illegally, all eight collectives that occupied the second floor of a Lake Forest mini-mall have closed. Across the Central District of California, which stretches from Santa Barbara to San Bernardino counties, many of the 38 clinics have closed because landlords, threatened with criminal charges or seizure of their assets, were given just 14 days to evict their clients”

By |2015-04-06T18:52:32-07:00October 22nd, 2011|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Threat gets Results as California Pot Shops Close

Feds Target Newspapers & Radio Stations that have Marijuana Ads

California Watch:  “Federal prosecutors are preparing to target newspapers, radio stations and other media outlets that advertise medical marijuana dispensaries in California, another escalation in the Obama administration’s newly invigorated war against the state’s pot industry.  This month, U.S. attorneys representing four districts in California announced that the government would single out landlords and property owners who rent buildings or land where dispensaries sell or cultivators grow marijuana. Now, newspapers and other media outlets could be next.”

By |2017-10-07T09:54:52-07:00October 18th, 2011|California News, Stories & Articles|Comments Off on Feds Target Newspapers & Radio Stations that have Marijuana Ads

Obama Administration Now Plans to Target Advertisements for Medical Marijuana Dispensaries in California

Phoenix New Times:  “President Obama doesn’t just want to seize the property of California medical-marijuana dispensaries and hit them with huge tax bills.  Now the Obama Administration plans to prosecute people who place ads for dispensaries — and possibly the newspapers that print them.”

See “US attorney eyes going after media running pot ads.   The chief federal prosecutor in San Diego [Laura Duffy] is contemplating expanding a federal crackdown on the medical marijuana industry by going after newspapers, radio stationsand other outlets that run advertisements for California’s pot dispensaries, her office told The Associated Press on Thursday. . . . ‘I’m not just seeing print advertising,’ Duffy told California Watch. ‘I’m actually hearing radio and seeing TV advertising. It’s gone mainstream. Not only is it inappropriate – one has to wonder what kind of message we’re sending to our children – it’s against the law’.”

See also “Medical marijuana crackdown gets reaction from those in industry.”

By |2017-02-12T07:38:03-07:00October 13th, 2011|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Obama Administration Now Plans to Target Advertisements for Medical Marijuana Dispensaries in California

Medical Marijuana: Feds Flex Their Muscles

NBC LA:  “Once again, the Barack Obama administration has taken a stance on medical marijuana. Federal prosecutors have written medical marijuana dispensaries throughout California that they will prosecute them for violating federal drug laws that prevent cultivation, possession and sales of marijuana unless they shut down their facilities.”

By |2012-05-12T14:42:03-07:00October 11th, 2011|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Medical Marijuana: Feds Flex Their Muscles

Cow Palace Hosts First Ever Medical Marijuana Job Fair

CBS San Francisco:  “Even though the federal government threatened a crack down on California’s medical marijuana clubs this week, The Cow Palace is brazenly hosting a Cannabis Expo that includes a job fair just south of San Francisco. Medical marijuana growers and sellers gathered this weekend with no sign of the feds in sight at the West Coast Cannabis Expo.”

By |2011-10-11T06:56:10-07:00October 11th, 2011|California News, Stories & Articles|1 Comment

IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million

The Bay Citizen:  “IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million – Oakland’s Harborside Health Center — the largest medical marijuana dispensary on the West Coast — lost the first round in a high-stakes battle with the Internal Revenue Service that could spell trouble for the booming pot industry. In a letter to Harborside late last week, the IRS ruled that the dispensary cannot deduct standard business expenses such as payroll and rent, because it is involved in what the agency terms ‘the trafficking of controlled substances,’ said Luigi Zamarra, Harborside’s chief financial officer. . . .If the IRS ultimately prevails, ‘we would close our doors and go away because the business model wouldn’t work,’ he said.”

See also “Harborside’s Death Tax,” which says:

“The federal government is attempting to tax Oakland’s Harborside Health Center — perhaps the country’s largest and most prominent medical marijuana dispensary — out of existence. “

Read Richard Keyt’s article called “IRS is in the Early Stages of a War to Kill Medical Marijuana Dispensaries.”

By |2017-10-07T09:54:52-07:00October 5th, 2011|California News, Federal Dispensary Attacks, Tax Issues|Comments Off on IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million

Confusion Surrounds California’s Medical Marijuana Laws

Digital Journal:  “The former owner of a Los Angeles County marijuana dispensary will learn of his sentence in the coming month in a case (LACBA368181-01, Los Angeles County Superior Court) that brings to light the confusion still surrounding California’s medical marijuana laws . . . . Under California state law, marijuana dispensaries must be operated on a non-profit basis. In many cases, however, authorities have raided dispensaries and charged them with operating on a “for profit” basis.  According to the Culver City Patch, prosecutors alleged that the Organica Collective dispensary near the Culver City-Los Angeles border had earned an average of $400,000 per month.”

By |2011-08-15T21:54:12-07:00August 15th, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Confusion Surrounds California’s Medical Marijuana Laws

Newark Pot Dispensary, Fremont Businesses Raided and Searched

MercuryNews.com:  “Authorities arrested two men Tuesday after raiding and searching three Tri-City area businesses — a Newark cannabis club and the offices of two Fremont psychics — and a Salinas storefront, each of which are suspected sites of drug-related crimes, a state Department of Justice spokeswoman said.  Police believe each of the businesses is tied to NBD Collective”

By |2012-05-12T15:20:27-07:00June 30th, 2011|California News, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Newark Pot Dispensary, Fremont Businesses Raided and Searched

Beaumont, California, Pot Dispensary Owner Arrested

The Redlands Daily Facts:  “A Riverside County multi-agency task force has arrested the owner of a medical marijuana dispensary who authorities say weathered a ban for more than two years by paying a $1,000-a-day fine. . . . Oak Tree Alternative Care was skirting Proposition 215 and was selling marijuana for profit”

By |2017-10-07T09:54:51-07:00June 24th, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Beaumont, California, Pot Dispensary Owner Arrested

Sacramento Marijuana Hospital Raided; 2 Operators Arrested

Sacramento Bee:  “Authorities raided a south Sacramento marijuana dispensary Thursday and arrested its operator and his father, alleging the pot shop has been operating illegally as a for-profit organization.  Elk Grove police, along with the Sacramento County Sheriff’s Department, served a search warrant at the R&R Wellness Center on Quinta Court”

By |2015-04-06T18:51:49-07:00June 22nd, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Sacramento Marijuana Hospital Raided; 2 Operators Arrested

Seven Arrested in Raid on San Bernardino County Pot Dispensary, Homes

The Press Enterprise:  “Seven people were arrested Wednesday and an eighth is being sought after San Bernardino County sheriff’s investigators raided a medical marijuana dispensary in Bloomington that authorities said operated illegally.  The arrests followed a three-month investigation into the Cognoscente Patients Collective . . . which investigators say was selling marijuana for profit in violation of the state’s medical marijuana law.”

By |2017-10-07T09:54:51-07:00June 17th, 2011|California News, Marijuana Crimes|Comments Off on Seven Arrested in Raid on San Bernardino County Pot Dispensary, Homes

Sacramento Marijuana Dispenary Raided & Operators Arrested

Sacramento Bee:  “Authorities raided a south Sacramento marijuana dispensary Thursday and arrested its operator and his father, alleging the pot shop has been operating illegally as a for-profit organization. . . . Police believe the dispensary has not been adhering to provisions of the state’s Compassionate Use Act, Trim said, instead operating as a for-profit organization and ‘essentially acting as illegal marijuana dealers.’  Under state law, dispensaries must operate as nonprofit patient organizations.”

By |2015-04-06T18:51:49-07:00June 17th, 2011|California News, Marijuana Crimes|Comments Off on Sacramento Marijuana Dispenary Raided & Operators Arrested

Fresno County Sheriff: Med-pot Stores Operating Illegally

The Fresno Bee:  “Attorneys for medical marijuana collectives on Thursday disputed Fresno County Sheriff Margaret Mims’ claim that the collectives are “money-making drug operations” and are illegal.  ‘The Board of Supervisors made it clear in December that instead of regulating [the collectives] they wanted to ban them all,’ said attorney Brenda Linder of Fresno, a spokesman for EarthSource, one of five collectives raided Wednesday. ‘I assume they set about doing it any way they could’.”

See “Fresno Co. Deputies Bust Medical Marijuana Dispensaries.”

By |2019-06-14T08:24:58-07:00June 12th, 2011|California News, Marijuana Crimes|Comments Off on Fresno County Sheriff: Med-pot Stores Operating Illegally

California Seniors’ Medical Pot Collective Stirs up Trouble

Associated Press: “Joe Schwartz is a 90-year-old great-grandfather of three who enjoys a few puffs of pot each night before he crawls into bed in the Southern California retirement community he calls home.  The World War II veteran and stroke sufferer smokes the drug to alleviate debilitating nausea and is one of about 150 senior citizens on this sprawling, 18,000-person gated campus who belongs to a thriving – and controversial – medical marijuana collective operating in the middle of one of the largest retirement communities in the United States.”

By |2011-06-08T07:37:55-07:00June 8th, 2011|California News, Stories & Articles|Comments Off on California Seniors’ Medical Pot Collective Stirs up Trouble

Whittier, California, Police Crack Down on Unlicensed Pot Dispensaries

Whitter Daily News:  “Culminating a three-month investigation, police brought a hammer down Wednesday on unlicensed medical marijuana dispensaries, shutting down two underground clinics, including one operating across from East Whittier Middle School.  They also served a search warrant at a medical office in the 7200 block of Greenleaf Avenue, where they arrested a physician on suspicion of aiding and abetting an unlicensed medical marijuana dispensary.”

See “Four people arrested in police crackdown on illegal pot dispensaries could face charges.”

By |2017-10-07T09:54:51-07:00May 21st, 2011|California News, Marijuana Crimes|Comments Off on Whittier, California, Police Crack Down on Unlicensed Pot Dispensaries

Los Angeles Scores Quick Win as Medical Marijuana Dispensary Decides to Close

Los Angeles Times:  “Los Angeles, which has struggled for years to find an efficient way to force hundreds of medical marijuana dispensaries out of business, scored a quick win Wednesday when one of the seven stores the city sued last week announced it had closed its doors.  The decision came after the city’s attorneys pressed the landlord to evict Cancare Collective and after the operators decided to avoid costly litigation.”

By |2011-05-19T06:40:45-07:00May 19th, 2011|California News, Stories & Articles|Comments Off on Los Angeles Scores Quick Win as Medical Marijuana Dispensary Decides to Close

Second Marijuana Growing Operation Discovered in the San Gabriel Valley

LA Times:  “A second large marijuana growing operation was discovered in the San Gabriel Valley this week, this time in three warehouses near the City of Industry.  Los Angeles County sheriff’s deputies found about 1,900 marijuana plants, valued at about $2 million, in a sophisticated pot-growing operation in the unincorporated community of Bassett.”

By |2011-05-19T06:31:18-07:00May 19th, 2011|California News, Marijuana Crimes|Comments Off on Second Marijuana Growing Operation Discovered in the San Gabriel Valley

Former California Medical Marijuana Dispensary Manager Sentenced to 3 1/2 Years

Bakersfield.com:  “The latest in a long line of defendants charged after a 2007 raid on a Bakersfield medical marijuana dispensary was sentenced to three and a half years in prison . . . . In California, medical marijuana is legal under state law. But federal law says pot is illegal and the Drug Enforcement Administration can bust medical marijuana dispensaries at any time.  There are certain rules the dispensaries must follow. For example, they can’t make a profit.  The DEA has said Nature’s Medicinal was doing millions of dollars in business a year.”

By |2015-04-06T18:51:48-07:00May 16th, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Former California Medical Marijuana Dispensary Manager Sentenced to 3 1/2 Years

S.F. Dispensary Cofounder, Arrested After Marijuana Grow Burns in Sonoma

SF Weekly:  “The cofounder of San Francisco’s slickest medical cannabis dispensary and a member of the San Francisco Medical Cannabis Task Force has been charged with multiple felonies stemming from a Sonoma County marijuana grow, according to news reports.  Joseph Erich Pearson, 34, co-founder of the award-winning Mission Street dispensary San Francisco Patient and Resource Center (SPARC), was arrested”

See “Founder of Upscale Pot Dispensary Arrested.”

By |2017-10-07T09:54:51-07:00May 16th, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on S.F. Dispensary Cofounder, Arrested After Marijuana Grow Burns in Sonoma

2 Arrested on Suspicion of Running Illegal Marijuana Growing Operation in the San Gabriel Valley

Los Angeles Times:  “Two suspects have been arrested in connection with an illegal marijuana cultivation operation in the San Gabriel Valley after authorities seized two caches of plants and dried marijuana with an estimated street value of $2.5 million, the Los Angeles County Sheriff’s Department said Friday.”

By |2011-06-05T07:59:57-07:00May 13th, 2011|California News, Marijuana Crimes|Comments Off on 2 Arrested on Suspicion of Running Illegal Marijuana Growing Operation in the San Gabriel Valley

Venice, California, Pot Doctors Shut Down after Raid by State Medical Board and Police

Los Angeles Times:  “One of the Venice boardwalk’s eye-catching only-in-California features, the storefront pot doctors who lure patients with barkers, was shut down Wednesday, when the state medical board and law enforcement officers raided three locations linked to Medical Kush Doctor.  ‘It appeared to me that the target was the doctors and the practice of writing recommendations and the collective was a collateral casualty’.”

By |2011-05-05T10:05:38-07:00May 5th, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Venice, California, Pot Doctors Shut Down after Raid by State Medical Board and Police

Sacramento County District Attorney Subpoenas Isleton, CA, City Council Members Who Say They Will Plead the 5th

The Sacremento Bee:  “Sacramento County District Attorney Jan Scully’s probe into Isleton’s licensing of a medical marijuana farm has hardened into a legal war of wills as city officials say they’ll refuse to testify when called before a grand jury next week.  Scully subpoenaed City Council members and the city manager of the Delta hamlet April 13, after declaring in a letter that the city’s agreements with the medical marijuana grower likely ‘violate state and federal statutes’ and could subject local officials to prosecution.”

By |2015-04-06T18:51:47-07:00April 21st, 2011|California News, Marijuana Crimes, Stories & Articles|Comments Off on Sacramento County District Attorney Subpoenas Isleton, CA, City Council Members Who Say They Will Plead the 5th

California Medical Marijuana Activist Convicted of Selling Pot in His Dispensary Speaks of Legal Battle

North County Times:  “Two years ago, James Stacy operated a martial arts studio in Vista.  Then he opened a medical marijuana dispensary in the same building.  Within 10 weeks, he landed in federal jail.  Stacy fought federal criminal charges, lost, and now, with a felony drug conviction, is without a full-time job or significant income.  But along the way, he said, he found a new calling: activism.”

By |2015-04-06T18:51:46-07:00April 5th, 2011|California News, Federal Dispensary Attacks, Marijuana Crimes|Comments Off on California Medical Marijuana Activist Convicted of Selling Pot in His Dispensary Speaks of Legal Battle
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