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US: Medical marijuana dispensaries charged with drug trafficking

Allison Hoffman

San Jose Mercury News

Friday 07 Jul 2006

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SAN DIEGO - Federal prosecutors accused six people Thursday of illegally
trafficking pot under the cover of California's medical marijuana laws -
in some cases processed into baked goods, "Reefer's" peanut butter cups
and "Splif" peanut butter.

Federal and state search warrants were executed at more than 11
locations throughout San Diego in a morning raid, and at least five
people were arrested, authorities said. Federal charges were expected to
be filed Friday, according to U.S. Attorney Carol Lam.

"They made thousands of dollars every day," Lam said. "Their motive was
not the betterment of society. Their motive was profit."

One federal indictment accuses John Sullivan, 38, of growing more than
100 marijuana plants for distribution and distributing marijuana or
processed marijuana-based goods from his two dispensaries, the Purple
Bud Room in Pacific Beach and THC in San Diego.

Five managers of the Co-op San Diego were indicted separately on similar
allegations. Wayne Hudson, 42; Christopher Larkin, 34; and Ross McManus,
39, are alleged to have distributed marijuana products through the
co-op. Scott Wright, 40, and Michael Ragin, 34, are accused of growing
hundreds of plants for the co-op at their homes.

Messages left at the dispensaries were not immediately returned.

Also, the San Diego County District Attorney has filed state charges
against one of the men named in the federal indictment and nine others
for selling marijuana and possessing marijuana for sale.

State charges were filed against Sullivan's THC dispensary and four
other independent operations in San Diego. Prosecutors alleged that
these dispensaries sold marijuana or marijuana-based products with
little concern for legitimate medical need.

"The party is over," District Attorney Bonnie Dumanis said at a news
conference with federal prosecutors. She added that Proposition 215, the
ballot measure that legalized marijuana for medical purposes, has been
"severely abused by neighborhood pot dealers opening up storefronts."

Complaints from residents living near dispensaries precipitated an
investigation beginning in September 2005 by the San Diego police, the
county sheriff's department, the Drug Enforcement Administration,
Dumanis said.

Dumanis said that her office has "no intention" of preventing people who
suffer chronic illnesses like AIDS, glaucoma or cancer from using
medically prescribed marijuana to ease their pain.

But San Diego County has fought an ongoing battle to limit the impact of
the medical marijuana law, which was approved in 1996 by 55 percent of
voters.

San Diego has ignored a state requirement that counties issue
identification cards to registered medical marijuana users and maintain
a registry of people who apply for the cards.

In December, county supervisors sued the state of California and its
director of health services in federal court, saying federal law that
prohibits marijuana use trumps the state law. The county moved that
lawsuit to state court in February to avoid bringing the case to the 9th
U.S. Circuit Court of Appeals, which has sided in recent rulings with
medical marijuana supporters. That suit is still pending.

The men indicted by the federal grand jury face a maximum of 40 years in
prison and $2 million in fines for each of the allegations listed in the
indictment, authorities said.

The San Diego County District Attorney's office released a complaint
sent last week to the state medical board against four physicians
alleging that they wrote "recommendations" for medical marijuana use -
doctor's notes required by state law - to apparently healthy individuals.
http://www.mercurynews.com

 

 

 

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