Cops & DEA Raid Two Dispensaries Raided in Costa Mesa

Hightimes:  “Even the local cops and DEA agents seemed to question (at least jokingly) why they were raiding Otherside Farms, an upscale medical marijuana dispensary in Costa Mesa, California on Tuesday. . . . In all, authorities seized 200 plants, an undisclosed amount of cash and Otherside’s bank records. And while the joint local and federal operation raided another dispensary called American Collective, they also ignored roughly a dozen others still doing business in Costa Mesa.

By |2017-02-12T07:38:04-07:00January 22nd, 2012|California News, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Cops & DEA Raid Two Dispensaries Raided in Costa Mesa

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

Feds’ Kill Medical Marijuana Stance Terminates Marin County Dispensary & Collective

Press Democrat:  “The Obama administration’s statewide crackdown on medical marijuana dispensaries has landed a one-two punch in Marin County.  The Marin Alliance for Medical Marijuana, the state’s oldest dispensary, has posted a sign at its Fairfax storefront officeannouncing that the dispensary will shut down Dec. 17.  And Medi-Cone, a medical marijuana collective that was cultivating, harvesting and packaging medical marijuana for several Bay Area dispensaries ceased operations last week due to increased scrutiny by authorities

By |2012-05-12T14:40:37-07:00December 18th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds’ Kill Medical Marijuana Stance Terminates Marin County Dispensary & Collective

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

Obama’s War on Weed

Ray Stern of the Phoenix New Times wrote an in depth article examining President Obama’s who he says is trying to hack medical marijuana off at the knees.

“The new federal crackdown on medical marijuana announced on October 7 by California’s four U.S. Attorneys sent chills through the industry. It was a stunning reversal by the Obama administration. . . . If the feds shut down every dispensary in the land, medical-marijuana patients still can possess pot legally under state laws — they’ll just have to go back to buying it from Mexican drug cartels rather than from taxpaying and job-providing Americans.”

By |2012-05-12T14:41:09-07:00October 26th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Obama’s War on Weed

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

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 Dispensaries are Dead in the United States

Arizona Governor Jan Brewer killed Arizona’s medical marijuana dispensaries before the dispensaries even got to the starting gate.  The six lawsuits involving Arizona’s medical marijuana dispensary industry and cannabis clubs are slowly proceeding in court.  What happens in each of the lawsuits is not as important as the elephant in the medical marijuana room, which is that the United States has now made it clear even to the blind who will not see that the U.S. will prosecute people involved in selling medical marijuana any where in the U.S., including in states that have legalized it.  Here is the evidence:

The U.S. Justice Department has said in no uncertain terms that it will do the following in all fifty states:

  1. Prosecute people involved in selling medical marijuana to medical marijuana patients or caregivers.
  2. Prosecute people involved in growing medical marijuana for the purpose of selling to medical marijuana patients and caregivers.
  3. Prosecute landlords who lease real property to people or businesses that grow or sell marijuana on the premises.
  4. Prosecute lenders who loan money to people or businesses that grow medical marijuana for distribution or that sell  marijuana to medical marijuana patients or caregivers.

It does not matter if the parties who want to establish medical marijuana dispensaries and cannabis clubs are successful in all six of the Arizona lawsuits.  Even if the six lawsuits authorize medical marijuana dispensaries and cannabis clubs in Arizona, the federal government will prosecute anyone involved in growing and selling marijuana – medical or recreational.

People involved  in the cannabis club industry should also be very afraid.  The only people who have any comfort from the U.S. Justice Department’s current medical marijuana policies are state approved medical marijuana patients and caregivers who do not sell marijuana.  Cannabis clubs do not fall in that category.  It is clear to me that the U.S. Justice Department’s policy is to prosecute everybody involved in growing, selling and distributing marijuana except patients and caregivers.

By |2015-04-06T18:52:31-07:00October 11th, 2011|Federal Dispensary Attacks, Stories & Articles|2 Comments

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

New York Times: Federal Crackdown on Medical Pot Sales Reflects a Shift in Policy

New York Times:  “U.S. Attorneys in California Set Crackdown on Marijuana – Federal officials on Friday warned dozens of marijuana dispensaries throughout California to shut down or face civil and criminal action as part of a major crackdown on the state’s growing medical marijuana industry. The four United States attorneys in California said that they would move against landlords who rent space to the storefront operators of medical marijuana dispensaries, whom prosecutors suspect of using the law to cover large-scale for-profit drug sales. . .. But federal prosecutors said that in California, many people had simply used the law as a cover for large-scale drug operations, with tens of millions of dollars’ worth of marijuana being sent across state lines from here. Officials said they would also concentrate on properties used to grow marijuana, particularly in the agriculturally rich central part of the state.”

Watch a video clip of the U.S. Attorneys’ news conference on October 7, 2011.

Los Angeles Times:  “California’s U.S. attorneys say they are going after for-profit marijuana sellers. The Obama administration’s crackdown on California’s highly profitable medical marijuana industry represents a dramatic departure from the low-key approach it has long pursued.  California’s four U.S. attorneys said Friday that they are taking aim at large-scale growers and dispensary owners who are raking in millions of dollars while falsely claiming that their medical marijuana operations comply with state law, which does not allow for-profit sales.”

“. . . The step comes as the Obama administration has been steadily ratcheting up enforcement efforts. Last month, a federal firearms official sent a letter to gun dealers warning them against selling to medical marijuana users. The last bank in Colorado willing to handle money from dispensaries closed those accounts last week, concerned about federal prosecution. And the Internal Revenue Service has begun to order some dispensaries to pay millions of dollars in back taxes and penalties, ruling that they can’t deduct expenses because their business is illegal.”

By |2019-06-14T08:25:42-07:00October 8th, 2011|Colorado News, Federal Dispensary Attacks, Stories & Articles|Comments Off on New York Times: Federal Crackdown on Medical Pot Sales Reflects a Shift in Policy

Feds Announce another Nail in Medical Marijuana Dispensaries’ Coffin – RIP

The end of the medical marijuana industry in the 16 states that have legalized medical marijuana is at hand.  Here are several articles that discuss the announcement by the four U.S. Attorneys for California that the United States will pursue forfeiture law suits against real estate owners whose property is used by medical marijuana dispensaries.

  • Los Angeles Times:  “Feds cracking down on California medical marijuana dispensaries – Federal prosecutors in California are threatening to shut down medical marijuana dispensaries throughout the state, sending letters to warn landlords to stop sales of the drug within 45 days or face the possibility that their property will be seized and they will be sent to prison.   The stepped-up enforcement appears to be a major escalation in the Obama administration’s bid to rein in the explosive spread of medical marijuana outlets that was accelerated by the announcement that federal prosecutors would not target people using medical marijuana in states that allow it.”
  • ABC News:  “Justice Dept. Targets Marijuana Distributors in Calif. – The Justice Department announced today it is cracking down on the illegal distribution of marijuana in four federal districts in California, which has had a growing cannabis industry since legalizing medicinal marijuana in 1996.  The action places into question marijuana-related activities in 15 other states and the District of Columbia, which have legalized medicinal marijuana in some form.”
  • USA Today:  “Feds to outline plans today for shutting down Calif. pot shops  – The four U.S. attorneys in California, the first state to pass a law legalizing marijuana use for patients with doctors’ recommendations, have scheduled a joint news conference today to ‘outline actions targeting the sale, distribution and cultivation of marijuana.'”
  • Sign On San Diego:  “Feds seek closure of medical marijuana dispensaries – “‘Apparently the federal government would rather destroy an industry that’s employing tens of thousands of people and creating hundreds of millions of dollars in legal tax revenues to save face on a bankrupt policy that the American people don’t even support — namely denying the medical value of marijuana,” Cal NORML Director Dale Gieringer said.”
  • Phoenix New Times:  “Feds Target Property Owners of Medical Marijuana Dispensaries in California – If there’s no push-back from the states that have legalized weed for qualified patients, including Arizona, it looks like this could be the end of the road for what has been a thriving, though not altogether legal, medical marijuana industry.  Oh, and Jan Brewer will be proved right.”
By |2012-05-12T14:42:29-07:00October 7th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Announce another Nail in Medical Marijuana Dispensaries’ Coffin – RIP

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

DEA Raids Medical Marijuana Club in Tempe, Accuses Owners of Running Illegal Dispensary

Phoenix New Times:  “the DEA has gone after a . . . medical marijuana club in Tempe.  Agents began showing up at the AZ Go Green Co-Op at 426 East Southern Avenue around 8 a.m., according to a news report by Channel 10 (KSAZ-TV). The owners’ of the club, says the report, are Rachael Beeder and James Chaney.  A doctor at the clinic, James Eisenberg, left a note on the door saying he’ll be out till October 1st.”

See “Jailed Medical Marijuana Clinic Worker Speaks Out.”  “FOX 10’s cameras were the only ones there when the DEA raided a medical marijuana clinic in Tempe. In another exclusive, the woman that ran the Arizona Go Green Compassion Club talks to us from behind bars.”

For more about whether an Arizona cannabis club is legal under Arizona’s medical marijuana laws see “Are Arizona Cannabis Clubs Legal Under Arizona’s Medical Marijuana Laws?

By |2019-06-14T08:25:41-07:00September 30th, 2011|Cannabis Clubs, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles, Video|Comments Off on DEA Raids Medical Marijuana Club in Tempe, Accuses Owners of Running Illegal Dispensary

Rhode Island Governor Scraps Medical Marijuana Plan

Reuters:  “State-run medical marijuana dispensaries will not be coming to Rhode Island after Governor Lincoln Chafee scrapped the plan for fear it was illegal under federal law.  Chafee, who had earlier vowed support for the measure, said he decided the state’s planned dispensaries could violate superseding federal law and become a target of federal law enforcement efforts.”

This is probably the tactic Arizona Governor Jan Brewer will take to prevent medical marijuana dispensaries in Arizona after her Arizona vs. United States lawsuit gets dismissed by the federal court.

By |2012-05-12T14:43:12-07:00September 30th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Rhode Island Governor Scraps Medical Marijuana Plan

Medical Marijuana and Guns Don’t Mix, Warns ATF in Letter; Federal Law Prohibits Pot Users From Owning or Buying Firearms

Phoenix New Times:  “The U.S. Alcohol, Tobacco and Firearms Bureau, the same agency that lets drug cartel members buy guns, is warning firearms dealers not to sell to medical marijuana users.  In an open letter to the nation’s licensed firearms sellers, the ATF reminds dealers that federal law prohibits any user of a controlled substance from possessing or buying guns.  A standard form filled out by gun buyers asks if the buyer is a ‘user of’ or ‘addicted’ to any controlled substance — checking ‘yes’ effectively cancels the sale.”

By |2015-04-06T18:52:31-07:00September 29th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Medical Marijuana and Guns Don’t Mix, Warns ATF in Letter; Federal Law Prohibits Pot Users From Owning or Buying Firearms

Obama Breaks Another Campaign Promise

When he was campaigning for President of the United States Barack Obama said to the Oregon Mail Tribune on March 22, 2008:

What I’m not going to be doing is using the Justice Department resources to try to circumvent state medical marijuana laws.”

On June 29, 2011, the President’s Justice Department sent a letter to all attorneys in the Justice Department that included this statement:

“Persons who are in the business of cultivating, selling or distributing marijuana, and those who knowingly facilitate such activities, are in violation of the Controlled Substances Act, regardless of state law.”

What makes this broken promise especially bad is that the overwhelming majority of Americans favor the legalization of medical marijuana.  See the ABC News story called “High Support for Medical Marijuana, which includes the results of an ABC poll released January of 2010 that found that 81% favored legalization.

Marijuana Policy Project Campaign

Today Rob Kampia, Executive Director of the Marijuana Policy Project sent an email with the subject “Betrayed.”  The text of his message is below.  If you oppose the Justice Department’s continued war on medical marijuana, you should click on the links in his message to voice your position to the powers that be.

Two days ago, without any public comment, President Obama broke the above campaign promise to medical marijuana patients when his Justice Department issued a new departmental policy for enforcement of federal marijuana laws in states with medical marijuana programs. Deputy Attorney General James Cole stated that while federal prosecutors should not go after sick and dying individuals, they may choose to prosecute businesses that provide marijuana to patients, even when the providers are abiding by state law.

To put it simply, this is absurd.

Please email the White House today, and ask the Obama administration to respect the rights of the states – and the needs of the patients – by leaving medical marijuana providers who act in compliance with state law alone.

Despite the memo’s claim to the contrary, it contradicts what had been official DOJ policy and flies in the face of numerous past statements by the president and his attorney general. In May 2010, Attorney General Eric Holder testified in Congress that “if the entity is, in fact, operating consistent with state law, and is not — does not have any of those factors involved that are contained in that
Deputy Attorney General memo, … [threatening to arrest the dispensary’s employees] would be inconsistent with what the policy is as we have set it out.”

Please tell the Obama administration that providing channels for patients to safely obtain their doctor-recommended medicine is a crucial component of workable medical marijuana laws. Then, please post this link to your Facebook or Twitter account. Without necessary medical marijuana providers, many patients may have to revert to buying marijuana from the criminal market.

Finally, if you were an Obama supporter in any capacity during his 2008 campaign, please call his 2012 campaign headquarters and demand that he keep his promise to medical marijuana patients.

Thank you kindly for supporting marijuana policy reform.

Sincerely,

Rob Kampia
Executive Director
Marijuana Policy Project

By |2017-02-12T07:38:40-07:00July 1st, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Obama Breaks Another Campaign Promise

Justice Department Clarifies Its Position on State Legal Medical Marijuana: Sellers will be Prosecuted

In a June 29, 2011, letter from James M. Cole, Deputy Attorney General, the U.S. Department of Justice has apparently “clarified” its position on whether it will prosecute people who grow and distribute medical marijuana for money while complying state legal medical marijuana laws.  The answer is – YES!  The complex text of the letter follows:

U.S. Department of Justice

Office of the Deputy Attorney General

Washington. D.C. 20530

June 29, 2011

MEMORANDUM FOR UNITED STATES ATTORNEYS

FROM: James M. Cole  Deputy Attorney General

SUBJECT:  Guidance Regarding the Ogden Memo in Jurisdictions Seeking to Authorize Marijuana for Medical Use

Over the last several months some of you have requested the Department’s assistance in responding to inquiries from State and local governments seeking guidance about the Department’s position on enforcement of the Controlled Substances Act (CSA) in jurisdictions that have under consideration, or have implemented, legislation that would sanction and regulate the commercial cultivation and distribution of marijuana purportedly for medical use. Some of these jurisdictions have considered approving the cultivation of large quantities of marijuana, or broadening the regulation and taxation of the substance. You may have seen letters responding to these inquiries by several United States Attorneys. Those letters are entirely consistent with the October 2009 memorandum issued by Deputy Attorney General David Ogden to federal prosecutors in States that have enacted laws authorizing the medical use of marijuana (the “Ogden Memo”).

The Department of Justice is committed to the enforcement of the Controlled Substances Act in all States. Congress has determined that marijuana is a dangerous drug and that the illegal distribution and sale of marijuana is a serious crime that provides a significant source of revenue to large scale criminal enterprises, gangs, and cartels. The Ogden Memorandum provides guidance to you in deploying your resources to enforce the CSA as part of the exercise of the broad discretion you are given to address federal criminal matters within your districts.

A number of states have enacted some form of legislation relating to the medical use of marijuana. Accordingly, the Ogden Memo reiterated to you that prosecution of significant traffickers of illegal drugs, including marijuana, remains a core priority, but advised that it is likely not an efficient use of federal resources to focus enforcement efforts on individuals with cancer or other serious illnesses who use marijuana as part of a recommended treatment regimen consistent with applicable state law, or their caregivers. The term “caregiver” as used in the memorandum meant just that: individuals providing care to individuals with cancer or other serious illnesses, not commercial operations cultivating, selling or distributing marijuana.

The Department’s view of the efficient use of limited federal resources as articulated in the Ogden Memorandum has not changed. There has, however, been an increase in the scope of commercial cultivation, sale, distribution and use of marijuana for purported medical purposes.  For example, within the past 12 months, several jurisdictions have considered or enacted legislation to authorize multiple large-scale, privately-operated industrial marijuana cultivation centers. Some of these planned facilities have revenue projections of millions of dollars based on the planned cultivation of tens of thousands of cannabis plants.

The Ogden Memorandum was never intended to shield such activities from federal enforcement action and prosecution, even where those activities purport to comply with state law. Persons who are in the business of cultivating, selling or distributing marijuana, and those who knowingly facilitate such activities, are in violation of the Controlled Substances Act, regardless of state law. Consistent with resource constraints and the discretion you may exercise in your district, such persons are subject to federal enforcement action, including potential prosecution. State laws or local ordinances are not a defense to civil or criminal enforcement of federal law with respect to such conduct, including enforcement of the CSA. Those who engage in transactions involving the proceeds of such activity may also be in violation of federal money laundering statutes and other federal financial laws.

The Department of Justice is tasked with enforcing existing federal criminal laws in all states, and enforcement of the CSA has long been and remains a core priority.

 

By |2012-05-12T15:20:05-07:00July 1st, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Justice Department Clarifies Its Position on State Legal Medical Marijuana: Sellers will be Prosecuted

Obama Administration Clarifies Medical Marijuana Stance

Phoenix New Times:  “It doesn’t look like Cole’s new letter explicitly states that state workers have some sort of amnesty from federal prosecution. On the other hand, it doesn’t state that Arizona Department of Health Services employees are at risk of getting busted, either. No doubt, Obama doesn’t want to go down in history as the guy who put DHS Director Will Humble behind bars simply for going along with the wishes of Arizona voters.”

Bloomberg:  “Marijuana Growers in States Allowing Medical Use May Be Charged, U.S. Says”

Reason Online:  “Obama Administration Overrides 2009 Ogden Memo, Declares Open Season on Pot Shops in States Where Medical Marijuana Is Legal

By |2017-02-12T07:38:39-07:00July 1st, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Obama Administration Clarifies Medical Marijuana Stance

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

Oregon County says so Long to Short-lived Marijuana Dispensaries

South County Spotlight:  “Just after opening earlier this year, the sole remaining medical marijuana dispensary in Columbia County voluntarily shut down late last week, closing the door on what was largely becoming a growing illegal industry in Oregon, according to federal justice officials.  Early this month, U.S. Attorney Dwight Holton sent letters to area marijuana dispensaries saying their operations were illegal and owners would be prosecuted if they remained open”

By |2019-06-14T08:24:59-07:00June 30th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Oregon County says so Long to Short-lived Marijuana Dispensaries

Medical Marijuana Shops Struggle With Banks, Mounting Federal Pressure To Turn The Businesses Away

HuffPost Denver:  “Marijuana dispensaries in states that have legalized medical pot are struggling to obtain service from banks and credit-card companies, pressured by federal authorities who consider illegal the business estimated at $1.7 billion annually.  Operators and supporters of marijuana dispensaries say banks are turning away their business because they risk falling afoul of anti-money-laundering and drug-trafficking laws.  The largest U.S. bank, Bank of America Corp, said it started withdrawing services from dispensaries after receiving a warning from the U.S. Drug Enforcement Administration in late 2007 or early 2008.”

 

By |2012-05-12T15:20:54-07:00June 22nd, 2011|Banking Issues, Federal Dispensary Attacks, Stories & Articles|Comments Off on Medical Marijuana Shops Struggle With Banks, Mounting Federal Pressure To Turn The Businesses Away

US Attorney: Oregon Marijuana Dispensaries “Will Not Be Tolerated”

Willamette Week:  “Two days after WW published a story exposing rifts between law enforcement and some medical-marijuana operations, U.S. Attorney Dwight Holton and many Oregon district attorneys have issued a stern warning to this booming local industry.

“The sale of marijuana for any purpose—including as medicine—violates both federal and Oregon law and will not be tolerated,” says the warning from the U.S. Attorney’s Office. “People and businesses that conduct sales of marijuana face the risk of prosecution, civil enforcement action and seizure of assets.”

Read the full text of U.S. Attorney Dwight Holton’s June 3, 2011, letter.  See also “Medical pot sellers will be prosecuted in Ore.”

By |2017-02-12T07:38:39-07:00June 5th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on US Attorney: Oregon Marijuana Dispensaries “Will Not Be Tolerated”

DEA and Spokane Police Raid More Medical-Marijuana Dispensaries

Spokane Weekly:  “Jessica Nuna says she was standing behind the counter talking with a patient when the first agents came in. ‘I’m with the DEA,’ she says that one of them calmly told her–he was the only Drug Enforcement Administration member out of a team of about a dozen Spokane Police officers. By the time the team had left Nuna’s work–the Medical Herb Providers pot dispensary on Frea Street in Spokane–they had taken around 32 pot plants, $1,400 in cash, several ounces of ready-to-smoke marijuana and a several laptops, cells phones and other electronic devices.”

By |2017-02-12T07:38:39-07:00May 19th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on DEA and Spokane Police Raid More Medical-Marijuana Dispensaries

Threats of Federal Crackdown in New England

Rhode Island News:  “Peter F. Neronha, the U.S. Attorney for Rhode Island, is not alone among the top federal prosecutors in New England when it comes to threatening raids on large-scale marijuana dispensaries that have opened or plan to open and sell medical marijuana. . . . The action is more than just a threat out West. In Montana and Washington, federal authorities have executed search warrants at various medical dispensaries and grow sites. They also seized about $4 million from banks in three Montana cities. . . . In Arizona, Gov. Jan Brewer has been an outspoken critic of medical-marijuana dispensaries, but she said she respects the will of the people and does not plan on blocking the licensing of 126 dispensaries. She took offense at U.S. Attorney Dennis K. Burke’s threat to crack down on Arizona’s dispensaries.  ‘You know what I would say to Dennis Burke?’ she said. ‘Why don’t they enforce their immigration laws’?”

By |2012-05-12T15:21:47-07:00May 16th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Threats of Federal Crackdown in New England

States Reassess Marijuana Laws after Fed Warnings

Seattle Times:  “Several states have started reassessing their medical marijuana laws after stern warnings from the federal government that everyone from licensed growers to regulators could be subjected to prosecution.  The ominous-sounding letters from U.S. attorneys in recent weeks have directly injected the federal government back into a debate that has for years been progressing at the state level.”

By |2015-04-06T18:51:48-07:00May 9th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on States Reassess Marijuana Laws after Fed Warnings

New Federal Crackdown Confounds States That Allow Medical Marijuana

New York Times:  “Marijuana remains illegal under federal law, but that has not stopped a fuzzy industry of marijuana farms and dispensaries from rising to serve the 15 states that allow the drug to be used for medical purposes. Under President Obama, the federal government had seemed to make a point of paying little attention — until now. . . . federal prosecutors are suddenly asserting themselves, authorizing raids and sending strongly worded letters that have cast new uncertainty on an issue that has long brimmed with tension between federal and state law.”

By |2012-05-12T15:22:31-07:00May 9th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on New Federal Crackdown Confounds States That Allow Medical Marijuana

Colorado Medical-marijuana Bill Draws U.S. Attorney’s Warning

Denver Post:  “The U.S. attorney for Colorado warned state lawmakers Tuesday that pending legislation adjusting rules for medical marijuana would conflict with federal law and could lead to federal prosecutions.  U.S. Attorney John Walsh’s letter was sent to Colorado Attorney General John Suthers in response to his request for clarification on how federal treatment of medical marijuana use may conflict with pending legislation now under consideration in House Bill 1043.”

The text of the Colorado U.S. Attorney’s letter follows:

April 26, 2011

Jobn Suthers
Attorney General
State of Colorado
1525 Sherman St, 7th Floor
Denver, CO 80203

Dear Attorney General Suthers:

I am writing in response to your request for clarification of the position of the U.S. Department of Justice (the “Department”) with respect to activities that would be licensed or otherwise permitted under the terms of pending House Bill 1043 in the Colorado General Assembly. I have consulted with the Attorney General of the United States and the Deputy Attorney General of the United States about this bill, and write to ensure that there is no confusion as to the Department’s views on such activities.

As the Department has noted on many prior occasions, the Congress of the United States has determined that marijuana is a controlled substance, and has placed marijuana on Schedule I of the Controlled Substances Act (CSA). Federal law under Title 21 of the United States Code, Section 841, prohibits the manufacture, distribution or possession with intent to distribute any controlled substance, including marijuana, except as provided under the strict control provisions of the CSA. Title 21, Section 856 makes it a federal crime to lease, rent or maintain a place for the purpose of manufacturing, distributing or using a controlled substance. Title 21, Section 846 makes it a federal crime to conspire to commit that crime, or any other crime under the CSA. Title 18, Section 2 makes it a federal crime to aid and abet the commission of a federal crime.  Moreover, federal anti-money laundering statutes, including Title 18, Section 1956, make illegal certain financial transactions designed to promote illegal activities, including drug trafficking, or to conceal or disguise the source of the proceeds of that illegal activity. Title 18, Section 1957, makes it illegal to engage in a financial transaction involving more than $10,000 in criminal proceeds.

In October 2009, the Department issued guidance (the “Ogden Memo”) to U.S. Attorneys around the country in states with laws authorizing the use of marijuana for medical purposes under state law. At the time the Ogden Memo issued, Colorado law, and specifically, Amendment 20 to the Colorado Constitution, authorized the possession of only very limited amounts of marijuana for medical purposes by individuals with serious illnesses and those who care for them. [footnote 1] As reiterated in the Ogden memo, the prosecution of individuals and organizations involved in the trade of any illegal drugs and the disruption of drug trafficking organizations is a core priority of the Department. This core priority includes prosecution of business enterprises that unlawfully market and sell marijuana. Accordingly, while the Department does not focus its limited resources on seriously ill individuals who use marijuana as part of a medically recommended treatment regimen in compliance with state law as stated in the Ogden Memo, we maintain the authority to enforce the CSA vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. The Department’s investigative and prosecutorial resources will continue to be directed toward these objectives.

It is well settled that a State cannot authorize violations of federal law. The United States District Court for the District of Colorado recently reaffirmed this fundamental principle of our federal constitutional system in United States v. Bartkowicz, No. 10-cr-00118-PAB (D. Colo.2010), when it held that Colorado state law on medical marijuana does not and cannot alter federal law’s prohibition on the manufacture, distribution or possession of marijuana, or provide a defense to prosecution under federal law for such activities.

The provisions of Colorado House Bill J 043, if enacted, would permit under state law conduct that is contrary to federal law, and would threaten the ability of the United States government to regulate possession, manufacturing and trafficking in controlled substances, including marijuana. First, provisions of a proposed medical marijuana investment fund amendment to H.B. 1043, which ultimately did not pass in the Colorado House but which apparently may be reintroduced as an amendment in the Colorado Senate, appear to contemplate that the State of Colorado would license a marijuana investment fund or funds under which both Colorado and out-of-state investors would invest in commercial marijuana operations. The Department would consider civil and criminal legal remedies regarding those who invest in the production of marijuana, which is in violation of federal law, even if the investment is made in a state-licensed fund of the kind proposed.

Second, the terms of H.B. 1043 would authorize Colorado state licensing of “medical marijuana infused product” facilities with up to 500 marijuana plants, with the possibility of licensing even larger facilities, with no stated number limit, with a state-granted w.river based upon consideration of broad factors such as “business need.” Similarly, the Department would consider civil actions and criminal prosecution regarding those who set up marijuana growing facilities and dispensaries, as well as property owners, as they will be acting in violation of federal law.

As the Attorney General has repeatedly stated, the Department of Justice remains firmly committed to enforcing the federal law and the Controlled Substances Act in all states. Thus, if the provisions of H.B. 1043 are enacted and become law, the Department will continue to carefully consider all appropriate civil and criminal legal remedies to prevent manufacture and distribution of marijuana and other associated violations of federal law, including injunctive actions; civil penalties; criminal prosecution; and the forfeiture of any property used to facilitate a violation of federal law, including the Controlled Substances Act.

I hope this letter provides the clarification you have requested, and assists the State of Colorado and its potential licensees in making informed decisions regarding the cultivation, manufacture, and distribution of marijuana, as well as related financial transactions.

JOHN F. WALSH
United States Attorney
District of Colorado

[footnote 1]  As passed by Colorado voters in 2000, Amendment 20 made lawful under Colorado law the possession by a patient or caregiver of patient of “[n]o more than two ounces of a useable form of marijuana or no more than six marijuana plants with three or fewer being mature, flowering plants producing a usable form of marijuana.” Colo. Const. art. XVIII, § 14(4)(a). Within these limits, the Amendment authorized a medical marijuana “affirmative defense” to state criminal prosecution for possession of marijuana. Colo. Const. art. XVIII, § 14(2)(a), (b).

By |2015-04-06T18:51:48-07:00May 4th, 2011|Colorado News, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Colorado Medical-marijuana Bill Draws U.S. Attorney’s Warning
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