Time Running Out for Tucson Pot Growers

Yuma Sun:  “Medical marijuana users in the Tucson area may have less than 48 hours to ensure they can keep growing their own, legally, at least for another year. State health officials are scheduled to perform a final inspection Tuesday at a proposed medical marijuana dispensary on the city’s east side. That will pave the way for the owners to start selling the drug legally — at least under state law — to cardholders. But the other side of the equation is that the 2010 voter-approved medical marijuana law says only those who are at least 25 miles from a licensed dispensary are entitled to cultivate their own medicine.”

By |2015-04-06T18:55:46-07:00November 18th, 2012|Stories & Articles|Comments Off on Time Running Out for Tucson Pot Growers

Marijuana Dispensing Machine Maker’s Stock Price Up 3,000%

Market Watch:  “A company that creates medical-marijuana dispensing machines says its stock is getting way too high.  Medbox MDBX -90.24%   shares surged 3,000% this week — from roughly $4 Monday to $215 Thursday — before falling to $100 after executives sought to dampen investor enthusiasm. . . . The stock, which fell around 50% in early trading Friday, still hovers at $100. “We believe an appropriate trading range is between $5 and $10 but, alas, the market will do what it will do,” says Medbox founder Vincent Mehdizadeh. “

By |2014-04-27T11:21:27-07:00November 17th, 2012|Medbox, Stories & Articles|Comments Off on Marijuana Dispensing Machine Maker’s Stock Price Up 3,000%

Arizona Organix in Glendale Becomes First Medical-Marijuana Dispensary Approved by ADHS

Phoenix New Times:  “Arizona Organix at 5301 West Glendale Avenue has become the first medical-marijuana dispensary to be approve by the state. . . . The store can now begin selling marijuana to qualified patients legally, under Arizona law.  Unfortunately for Arizona’s 30,000-plus qualified patients, though, the store has no plan to open immediately.”

Will Humble, Director of the Arizona Department of Health Services, posted the following on his blog on November 15, 2012:

“Our team just returned from a field inspection for a dispensary applicant in Glendale.  There were no major deficiencies, and we awarded the dispensary an “approval to operate” late this afternoon.  This is the first dispensary approval to operate we’ve issued in the State.  By law, we’re not allowed to publicly disclose the address.

The fact that a dispensary is now licensed in the Valley also means that the “self-grow” part of the law will change on Friday.  Beginning tomorrow we’ll be declining new “requests to cultivate” among new cardholders in most of the metro area…  because self-grow (12 plants) is only allowed when the patient lives more than 25 miles from the nearest dispensary.  The vast majority of the Valley is within 25 miles of this new dispensary.

We’re also adding a new feature to our website to help people figure out if they live within 25 miles of a dispensary.  Because of the changes to the system, we’ just took the it offline.  We’ll work on it over the weekend and most of the application process should be up and running on Monday.”

See also “Medical pot dispensary gets AZ’s first approval to open.”

CBS 5 – KPHO

By |2019-06-14T08:26:16-07:00November 16th, 2012|Stories & Articles, Video|Comments Off on Arizona Organix in Glendale Becomes First Medical-Marijuana Dispensary Approved by ADHS

Arizona Medical Marijuana Card Holders Waiting for Dispensaries to Open

kvoa.com:  “Opening day for marijuana dispensaries all over Arizona keeps getting pushed back.  In 2010, voters approved a measure allowing the sale and use of medical marijuana in Tucson.  To use it, a patient must have a medical marijuana identification card, but still no open dispensaries and card holders have had to pay two hundred fifty dollars a year to keep their card active.”

By |2015-04-06T18:55:46-07:00November 16th, 2012|Stories & Articles|Comments Off on Arizona Medical Marijuana Card Holders Waiting for Dispensaries to Open

Law, Science, and the Coming Brawl Over Marijuana

The Atlantic:  “The federal government is on the wrong side of science over medical marijuana. Until that changes, there’s no chance for legalization.  Colorado’s newly-passed Amendment 64 contemplates a brave new world in which adults in the state will be able to lawfully smoke small amounts of marijuana purchased from licensed (and heavily taxed) local retailers. But that world isn’t even scheduled to begin until 2014, and only then if there are significant changes in the many assorted ways in which federal law criminalizes recreational marijuana possession and use. There is the legal component to the issue. There is the political component to it. . . . But there is another conflict here that’s been splayed open by the ballot initiatives, one which is more fundamental to the future of lawful marijuana use than any argument the feds will now use to stop the state initiatives. It’s the ongoing conflict over the science of marijuana, over the quality of proof of its medicinal values, which is central to the coming court fights. Until the Drug Enforcement Administration changes its marijuana classification, until lawmakers recognize its therapeutic uses, reformers like those in Colorado and Washington will be crushed in court.”

By |2012-11-16T06:36:13-07:00November 16th, 2012|Colorado News, Stories & Articles|Comments Off on Law, Science, and the Coming Brawl Over Marijuana

Boulder, Colorado, DA Dismissing Marijuana Cases

dailycamera.com:  “District Attorney Stan Garnett will dismiss all pending criminal cases of possession of less than an ounce of marijuana, saying the overwhelming support for Amendment 64 in Boulder County makes it highly unlikely a jury would ever reach a guilty verdict in any of those cases.  ‘You’ve seen an end to mere possession cases in Boulder County under my office,’ Garnett said Wednesday, becoming the first Colorado district attorney to drop pot cases because Colorado voters approved Amendment 64 earlier this month.”

See also:

By |2019-06-14T08:26:16-07:00November 16th, 2012|Colorado News, Stories & Articles|Comments Off on Boulder, Colorado, DA Dismissing Marijuana Cases

Up in Smoke

azdailysun.com:  “It’s been a year since David Grandon opened the nonprofit Grassroots Medical Center on Switzer Canyon Road to provide medical services and a marijuana exchange for card-holding patients.  He had high hopes then that he would eventually transition his operation into a full-blown medical marijuana dispensary. Grandon is a well-known Flagstaff artist who is currently working on a large mural at the Flagstaff Arts and Leadership Academy.  Those hopes were dashed in early August, when the medical marijuana dispensary permit was awarded to someone else in the state lottery amid accusations of rule violations.”

By |2012-11-14T06:08:19-07:00November 14th, 2012|Stories & Articles|Comments Off on Up in Smoke

Pediatrics Group Raises Red Flag about Medical Pot & Pregnancy

Arizona Republic:  “Arizona pediatricians are concerned that the state’s medical-marijuana law is being used to treat the ailments of pregnant women, potentially harming fetuses.  Members of the Arizona chapter of the American Academy of Pediatrics want to stop the practice and point to one incident in which a mother in labor told hospital officials that she had received a medical-marijuana card during pregnancy and had been using the drug.”

By |2012-11-14T06:03:10-07:00November 14th, 2012|Stories & Articles|Comments Off on Pediatrics Group Raises Red Flag about Medical Pot & Pregnancy

Will Obama Let Washington and Colorado Keep Their Legal Pot?

The Atlantic:  “The marijuana reform movement made history this week, when voters in Colorado and Washington passed ballot initiatives legalizing the possession and sale of cannabis for purely recreational use. . . . The new laws would treat marijuana much like alcohol and tobacco, setting the stage for a large scale, tightly regulated, and generously taxed commercial industry worth some untold millions of dollars. Simply put, these would be the most lax marijuana laws in the world — smack dab in the middle of the country that invented the modern drug war.  The big question now is: Will Obama let it happen?

By |2012-11-12T06:16:25-07:00November 12th, 2012|Stories & Articles|Comments Off on Will Obama Let Washington and Colorado Keep Their Legal Pot?

Washington Prosecutors Dismiss 220 Misdemeanor Marijuana Cases

Seattle Times:  “King and Pierce County prosecutors are dismissing more than 220 misdemeanor marijuana cases in response to Tuesday’s vote to decriminalize small amounts of pot.  In King County, 175 cases are being dismissed involving people 21 and older and possession of one ounce or less. I-502 makes one ounce of marijuana legal on Dec. 6, but King County Prosecutor Dan Satterberg decided to apply I-502 retroactively.  ‘Although the effective date of I-502 is not until December 6, there is no point in continuing to seek criminal penalties for conduct that will be legal next month,’ Satterberg said in a statement.”

By |2012-11-11T07:13:31-07:00November 11th, 2012|Marijuana Crimes, Stories & Articles|Comments Off on Washington Prosecutors Dismiss 220 Misdemeanor Marijuana Cases

Southern California Legal Confusion over Medical Marijuana

The Weed Blog:  “Four Ballot Initiatives Fail to Secure the Rights of Medical Marijuana Dispensaries to Exist in Four San Diego Cities While a Landmark California Appellate Court Decision Defines Dispensaries as Legal.  The San Diego District Attorney (DA) and failed mayoral candidate, Bonnie Dumanis’ modus operandi has been to charge all dispensary operators with crimes, making no attempt to apply the state’s medical marijuana laws in her investigations. She relies on her own interpretation of the law (interpretations that have been squarely rejected by appellate courts throughout the state), questionable tactics designed to keep evidence from jurors’ eyes, and continues to prosecute case after case, at great public expense.

By |2012-11-11T07:09:01-07:00November 11th, 2012|California News, Marijuana Crimes, Stories & Articles|Comments Off on Southern California Legal Confusion over Medical Marijuana

ADHS Issues First Annual Report on Arizonas Medical Marijuana Law

 The Arizona Department of Health Services issued its first annual report on the state of Arizona’s medical marijuana law.  The report is titled “Report to Arizona, Department of Health Services: First Annual Medical Marijuana Report A.R.S. §36-2809.”  Here are some statements made in the report:

During April 2011 to June 2012, ADHS received a total of 41,476 applications and approved approximately 98% of the applications (40,463). Out of the 40,463 approved applications, 33,060 (82%) were new applications and 3,689 (9%) were application for renewals. There were a total of 29,804 active cardholders, which included 28,977 qualifying patients and 827 caregivers.  Of the total qualifying patients, approximately 26% (n = 7,702) were female qualifying patients and of the total caregivers, 20% (n = 168) were female caregivers. During April 2011 to June 2012 slightly over 80% (n = 24,191) of the qualifying patients and caregivers (n = 701) were authorized to cultivate.

The majority of the qualifying patients (n = 22,357; 77%) had one debilitating medical condition with the remaining 23% reporting two or more conditions. Approximately 70% of the qualifying patients (n = 19,631) indicated “severe and chronic pain” as the only debilitating medical condition. Four-hundred seventy physicians provided certifications to 28,977 patients during this time period (a median value of two certifications per physician; however, 10 physicians certified 13,336 [~46%] of all patients).

From May 14 through May 25, 2012, ADHS accepted applications for non-profit medical marijuana dispensaries.

ADHS held a lottery on August 7, 2012, and a total of 98 registration certificates were allocated through this process.

During the time period for which the data have been analyzed provided in this report (April 14, 2011 through June 15, 2012), there were zero DA Registry Identification Cards issued.

Several lawsuits have been filed concerning the implementation of the Arizona Medical Marijuana Act. A scanned copy of the complaint for each lawsuit is available on the ADHS
website. As of the date of this Annual Report, the current lawsuits include:

  • Johanna Dispensaries v. ADHS: LC2012-000544
  • Charise Voss Arfa v. ADHS: CV2012-014816
  • Arizona Organix v. ADHS: CV2012-054733
  • White Mountain Health Center v. ADHS: CV2012-053585
  • Serenity v. ADHS: LC2011-000410
  • Elements v. ADHS: CV2011-011288
  • Compassion First v. Arizona: CV2011-011290
  • Sobol v. Arizona: CV2011-053246
  • Arizona v. 2811: CV2011-014508
  • Arizona v. USA: 11-01072

Medical Marijuana Fund Program Inception through FY 2012 4/14/2011 to 6/30/2012

Revenues:

Application fee for a Registry Card $5,525,277
Application fee for a Dispensary $2,420,000

Total Revenues $7,945,277

Expenditures:

Salaries, Wages and Benefits $570,972
Operating Expenditures $1,505,023
Capital Equipment Expenditures  $304,464

Total Expenditures $2,380,459

Fund Balance $5,564,818

By |2012-11-09T19:16:47-07:00November 9th, 2012|Stories & Articles|Comments Off on ADHS Issues First Annual Report on Arizonas Medical Marijuana Law

7 Long Beach Medical Marijuana Dispensaries Raided Last Week

Dailybreeze.com:  “State, county and local authorities continued with raids on medical marijuana businesses this week, citing the city’s push to see such organizations cease all operations in Long Beach.  One raid was carried out Tuesday and two more operations were held Wednesday, resulting in 10 arrests . . . . The three raids bring the the total number of dispensaries shut down within the past week to seven. Last week’s operations saw 15 people arrested”

By |2017-10-07T09:56:00-07:00November 9th, 2012|California News, Marijuana Crimes, Stories & Articles|Comments Off on 7 Long Beach Medical Marijuana Dispensaries Raided Last Week

US Marijuana Victories Could be Short-lived

iol news:  “US – Votes making Colorado and Washington the first US states to legalise marijuana for recreational use could be short-lived victories for pot backers because the federal government will fight them, two former US drug control officials said on Wednesday.  They said the federal government could sue to block parts of the measures or send threatening letters to marijuana shops, followed up by street-level clampdowns similar to those targeting medical marijuana dispensaries the government suspects are fronts for drug traffickers.”

By |2012-11-09T06:32:25-07:00November 9th, 2012|Federal Dispensary Attacks, Stories & Articles|Comments Off on US Marijuana Victories Could be Short-lived

World Turns On to U.S. Marijuana Legalization

Time:  “In April 2011, former Mexican President Vicente Fox sat before an audience at the University of Colorado at Boulder and in his baritone voice and frank tone urged Americans to legalize marijuana. His thrust: it could help enervate Mexico’s violent drug cartels. ‘The drug consumer in the U.S. yields billions of dollars, money that goes back to Mexico to bribe police and money that buys guns,’ Fox said. ‘So when you question yourselves about what is going on in Mexico, it depends very much on what happens in this nation.’  At the time, many pundits warned that legalization was a nonstarter. But on Tuesday, voters in Colorado and Washington state did exactly what Fox called for: they approved landmark amendments to legalize, regulate and tax marijuana.”

By |2012-11-09T06:29:49-07:00November 9th, 2012|Stories & Articles|Comments Off on World Turns On to U.S. Marijuana Legalization

A Bad Trip for Democrats

New York Times:  “TUESDAY’S election was a victory for the marijuana lobby: Colorado and Washington State voted to legalize recreational use, while Massachusetts will now allow doctors to recommend it as medicine. It’s a movement around which many Democrats have coalesced. . . . But Democrats should think twice about becoming the party of pot. I’m a lifelong partisan Democrat, but I’ve also spent 25 years as a doctor treating drug abusers, and I know their games. They’re excellent con artists.”

By |2012-11-08T08:04:41-07:00November 8th, 2012|Stories & Articles|Comments Off on A Bad Trip for Democrats

Colorado & Washington Legalize Marijuana

newser:  “Those who have argued for decades that legalizing and taxing weed would be better than a costly, failed U.S. drug war have their chance to prove it, as Colorado and Washington became the first states to allow pot for recreational use.  While the measures earned support from broad swaths of the electorate in both states Tuesday, they are likely to face resistance from federal drug warriors. As of Wednesday, authorities did not say whether they would challenge the new laws.  Pot advocates say a fight is exactly what they want.”

By |2015-04-06T18:55:46-07:00November 8th, 2012|Colorado News, Stories & Articles|Comments Off on Colorado & Washington Legalize Marijuana

Dispensary Owner Charged with Marijuana Crimes Faces 40 Years in Prison if Convicted

Daily Tahoe Tribune:  “Federal prosecutors have formally charged former South Lake Tahoe medical marijuana dispensary owner Gennaro ‘Gino’ DiMatteo with two weed-related crimes.  In a criminal complaint unsealed Monday, DiMatteo is charged with possession with intent to distribute marijuana and manufacturing at least 100 marijuana plants. He faces between five and 40 years in prison for each charge.”

By |2017-02-12T07:39:22-07:00November 8th, 2012|California News, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Dispensary Owner Charged with Marijuana Crimes Faces 40 Years in Prison if Convicted

Status of White Mountain Health Center Case

azmarijuana.com:  “October 19, 2012, Maricopa County Superior Court Judge Michael Gordon heard arguments made by Maricopa County Attorney William Montgomery (himself) and by Deputy Attorney General Charles Grube, for Tom Horne, challenging the viability of the Arizona Medical Marijuana Act. An explanation of how we got to this point can be found in my editorial entitled: The Most Important Medical Marijuana Lawsuit in Recent History? Judge Gordon, my co-counsel Ezekiel Edwards of the ACLU, and even the attorneys challenging the law and me were all well-prepared.”

By |2019-06-14T08:26:15-07:00November 6th, 2012|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Status of White Mountain Health Center Case

Medicine Dispensing Systems, Inc. and Kind Clinics, LLC Sue Over Alleged Defamation of Vending Machines

Arkansas Matters.com:  “The Arkansas Family Council Action Committee has been sued over statements earlier this week about what it called ‘marijuana vending machines.’  Medicine Dispensing Systems, Inc. (MDS) and Kind Clinics, LLC filed suit in Federal Court in Little Rock this morning, citing ‘false allegations’ by Family Council President Jerry Cox, a staunch opponent of Issue 5, the Arkansas Medical Marijuana Act.”

The complaint alleges:

“Defendants made defamatory statements about the MDS. Defendants’ website refers a reader to the medbox website, and used a replica of the MDS. These statements were published on the Defendants’ website and numerous newspapers and articles on the world wide web. Furthermore, Mr. Cox gave several interviews portraying Plaintiffs’ products as “vending machines” that sell marijuana without any prescription to the general public and at convenience stores. These statements are absolutely false. As a result ofthe Defendants’ conduct, Plaintiffs suffered damages as described above. Defendants’ conduct also injured Plaintiffs and diminished their goodwill.”

Defendants made defamatory statements about the MDS. Defendants’ website refers a reader to the medbox website, and used a replica of the MDS. These statements were published on the Defendants’ website and numerous newspapers and articles on the world wide web. Furthermore, Mr. Cox gave several interviews portraying Plaintiffs’ products as “vending machines” that sell marijuana without any prescription to the general public and at convenience stores. These statements are absolutely false. As a result ofthe Defendants’ conduct, Plaintiffs suffered damages as described above. Defendants’ conduct also injured Plaintiffs and diminished their goodwill.

See “Marijuana vending machine company sues AR Family Council” that states: “The company that produces medical marijuana vending machines sued Family Council Action Committee and Jerry Cox on Friday for defamation, negligence and trademark violations related to a press conference earlier this week.”

Check out the Complaint and other legal documents filed with the federal district court:

Medbox vs Family Council Action Commitee & Jerry Cox (710.9KB)
Motion for Temporary Restraining Order (91.7KB)
Brief in Support of Temporary Restraining Order (188.5KB)
By |2019-06-14T08:26:15-07:00November 3rd, 2012|Medbox, Stories & Articles|Comments Off on Medicine Dispensing Systems, Inc. and Kind Clinics, LLC Sue Over Alleged Defamation of Vending Machines

Dispensary Owner Arrested on Federal Charges

Tahoe Daily Tribune:  “Former South Lake Tahoe medical marijuana dispensary owner Gennaro ‘Gino’ DiMatteo faces federal charges after being arrested prior to a court hearing in Placerville Friday.  . . . A statement from the El Dorado County District Attorney’s Office regarding the arrest does not specify the nature of the federal charges and little information on the arrest could be located Friday.  Lauren Horwood, spokeswoman for prosecutors in the U.S. District Court, Eastern District of California, said on Friday that the federal criminal complaint against DiMatteo is sealed.

By |2017-02-12T07:39:21-07:00November 3rd, 2012|California News, Federal Dispensary Attacks, Stories & Articles|Comments Off on Dispensary Owner Arrested on Federal Charges

Medical Marijuana Dispensary Sues DOJ, DEA & Holder

Courthouse News Service:  “A licensed medical marijuana provider sued the Justice Department and DEA, claiming that their illegal crusade threatens to cost thousands of patients their means to acquire the painkilling drug legally.       No Grey Sky and members of its dispensary co-op seek an injunction against the Department of Justice, Attorney General Eric Holder, and the Drug Enforcement Administration, whose agents raided the dispensary’s downtown store this month.”

By |2017-10-07T09:56:00-07:00November 3rd, 2012|California News, Stories & Articles|Comments Off on Medical Marijuana Dispensary Sues DOJ, DEA & Holder

Singh Dispensary Solutions dba weGrow Phoenix Sues “Illegal Hydroponics Cartel”

Courthouse News Service:  “Singh Dispensary Solutions dba weGrow Phoenix . . . . [filed a lawsuit in which it claims] ‘Defendants Sunlight Systems, Hydrofarm, BWGS, and R & M Supply Inc., seized upon their substantial market power and the fewness of firms in Arizona to exclusively control the wholesale hydroponics supply market in the state of Arizona, all to the detriment of plaintiff and Arizona consumers’.”

See also “Arizona weGrow Franchise Accuses Rivals of Forming ‘Cartel’ to Sink Phoenix Store.”

By |2017-10-07T09:55:59-07:00November 3rd, 2012|AZ Marijuana Law Lawsuits, Legal Issues, Stories & Articles|Comments Off on Singh Dispensary Solutions dba weGrow Phoenix Sues “Illegal Hydroponics Cartel”

Montana Dispensary Owner Convicted of Marijuana Crimes Faces 90 Year Sentence

Toke of the Town:  Chris Williams ” faces the near-certainty that he will spend the rest of his life locked away in an industrial-size cage. His crime? Providing medical marijuana to terminally ill and disabled patients authorized to use cannabis under Montana law. Williams co-owned Montana Cannabis . . . . Despite clear and unambiguous compliance with State law, Williams’s company was taken down in highly-coordinated federal raids that targeted 26 businesses across Montana — all in the course of a single day.”

By |2012-11-02T07:16:06-07:00November 2nd, 2012|Marijuana Crimes, Stories & Articles|1 Comment

Hit Mexico’s Cartels With Marijuana Legalization

New York Times:  ” nobody knows exactly how much the whole Mexico-U.S. marijuana trade is worth, with estimates ranging from $2 billion to $20 billion annually. But even if you believe the lowest numbers, legal marijuana would take billions of dollars a year away from organized crime. This would inflict more financial damage than soldiers or drug agents have managed in years and substantially weaken cartels. . . . It is also argued that Mexican gangsters have expanded to a portfolio of crimes that includes kidnapping, extortion, human smuggling and theft from oil pipelines. This is a terrifying truth. But this does not take away from the fact that the marijuana trade provides the crime groups with major resources. That they are committing crimes such as kidnapping, which have a horrific effect on innocent people, makes cutting off their financing all the more urgent. “

By |2012-11-01T21:09:51-07:00November 1st, 2012|Stories & Articles|Comments Off on Hit Mexico’s Cartels With Marijuana Legalization

Mesa Medical-Marijuana Club Busted by Gilbert PD

Phoenix New Times:  “Valley marijuana patients lost another over-the-counter source for their meds earlier this month when Gilbert police raided Arizona Natural Solutions in Mesa. . . . Paul Bellesen, 22, Chad Czarnecki, 24, and Robert Ryan, 25, are accused of selling pot and “narcotics,” (this is another example of police wanting to utilize the ludicrous state statute that defines marijuana products like hashish as something other than marijuana), and possessing drug paraphernalia.”

By |2017-02-12T07:39:21-07:00October 31st, 2012|Marijuana Crimes, Stories & Articles|Comments Off on Mesa Medical-Marijuana Club Busted by Gilbert PD

Feds Bust 9 Pot Shops Arrest 12 in Southern California

The following is the text of an October 25, 2012, press release issued by the Drug Enforcement Agency:

A dozen people associated with a chain of nine marijuana stores that operated across Orange and Los Angeles counties were arrested this morning on federal drug trafficking charges. The 12 arrested are among 14 people named in a 14-count indictment returned last week by a federal grand jury.

The indictment outlines a narcotics-trafficking conspiracy led by John Melvin Walker, who owned and operated nine marijuana stores in cities across the two counties. The conspiracy count alleges that the 14 defendants participated in a scheme that distributed, at the very least, a ton of marijuana through the storefronts.

The nine marijuana stores allegedly operated by Walker were Alternative Herbal Health in Long Beach, Safe Harbor Collective in Dana Point, Garden Grove Alternative Care in Garden Grove, Santa Ana Superior Care in Santa Ana, Belmont Shore Natural Care in Long Beach, Santa Fe Compassionate Health Care in Santa Fe Springs, Costa Mesa Patients Association in Costa Mesa, the Whittier Collective in Whittier, and APCC (also known as the “San Juan Capistrano Store”) in San Juan Capistrano. Most of the stores previously were the subject of search warrants executed in 2010 and 2011. Most of the nine stores are now closed, but several are believed to still be in operation, including Belmont Shore Natural Care.

The investigation in this case revealed that the nine marijuana stores generated tens of millions of dollars in income, with the indictment alleging that in 2009 alone Safe Harbor Collective had profits of approximately $2.4 million.

The indictment alleges that Walker failed to report any income generated at the marijuana stores to federal tax authorities and that he instructed his bookkeeper “to destroy all records pertaining to income generated at the marijuana [stores] shortly after they were generated and not to create records that fully identified Walker’s connection to the marijuana [stores].” One of the managers of Belmont Shore Natural Care communicated to Walker that “they should shred documents related to cash intake at Belmont Shore Natural Care at the end of the night,” according to the indictment.

The charges in the indictment include conspiracy (to distribute marijuana and to maintain drug-involved premises) and maintaining drug-involved premises near schools. Additionally, Walker is charged with being a felon in possession of firearms (including a handgun, a 12-gauge shotgun, and an AK-47) after previously being convicted in state court on cocaine and marijuana charges. When authorities seized the weapons from Walker’s home last year, they also seized approximately $390,000 in cash.

Furthermore, Walker and his security manager are charged with possessing firearms in furtherance of drug trafficking, a crime that carries a mandatory five-year sentence to run consecutively to any other sentence given to the defendants.

The defendants named in the indictment are:

  • John Melvin Walker, also knows an “Pops,” 56, of San Clemente, the owner/operator of the nine marijuana stores;
  • Ryan Aparicio Mondragon, 30, Westminster, who managed Santa Ana Superior Care and who is currently being sought by authorities;
  • Danielle Pamela Stebel, also known as “Mob Queen,” 25, of Long Beach, who helped manage Belmont Shore Natural Care;
  • Nicholas Einar Lattu, also known as “Dragon 6,” 28, of Long Beach, who owned Shadow Ops Security, a company that provided security services to the marijuana stores, and who is currently being sought by authorities;
  • Ryan Scott Hunt, 36, of Fullerton, who managed Garden Grove Alternative Care;
  • Perry Brooks Forehand, also known as “Bucky,” 33, of Mission Viejo, the manager of Safe Harbor Collective;
  • Nicholas Martin Butier III, 32, of Lakewood, who was the manager of Alternative Herbal Health;
  • Sierra Marina Serhan, also known as “Happy Chick,”  33, of Long Beach,  who helped manage Belmont Shore Natural Care;
  • Alvin Wesley Walker, 29, of Long Beach, who is believed to be John Walker’s nephew and who helped manage Belmont Shore Natural Care;
  • John Eugene Scandalios, 59, of Lakewood, who allegedly supplied marijuana to Santa Fe Compassionate Health Care;
  • Karen Lee Leto, 70, of Huntington Beach, who allegedly helped manage Costa Mesa Patients Association;
  • Craig Lawrence Leto, 49, of Newport Beach who is Karen Leto’s son and who allegedly helped manage Costa Mesa Patients Association;
  • Michael Alan Nixon, 33, of Long Beach, who allegedly supplied marijuana to Santa Fe Compassionate Health Care;
  • Alan David Nixon, 59, of Long Beach, who is Michael Nixon’s father and who allegedly managed Santa Fe Compassionate Health Care.

The 12 defendants arrested this morning are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.

       An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed to be innocent until and unless proven guilty in court.

All 14 defendants charged in the indictment are named in count one – the conspiracy charge – which carries a mandatory minimum sentence of 10 years in federal prison and a maximum statutory sentence of life without parole.

The investigation into John Walker’s chain of marijuana stores was conducted by the Orange County Sheriff’s Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Franchise Tax Board; the California Board of Equalization; and the Orange County District Attorney’s Office.

See also  “A dozen people who authorities say are linked to an intricate, multimillion-dollar operation involving illegal pot shops in Los Angeles and Orange counties were arrested Thursday and “L.A. Marijuana Dispensary Operator, 11 Others, Arrested By Feds.”

By |2019-06-14T08:26:14-07:00October 27th, 2012|California News, Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Feds Bust 9 Pot Shops Arrest 12 in Southern California

Man Shot During Robbery at Tempe Medical Marijuana Co-op

AZCentral.com:  “Police are searching for three men after a shooting left one injured at a Tempe medical-marijuana co-op [called AzGoGreen Co-op] Thursday evening, authorities said. . . . Tempe police on Friday said the co-op had been under investigation prior to the shooting. Police were investigating whether the dispensary was selling marijuana before it was authorized to do so by the Arizona medical marijuana law”

By |2012-10-27T07:10:37-07:00October 27th, 2012|Stories & Articles, Video|Comments Off on Man Shot During Robbery at Tempe Medical Marijuana Co-op

Landmark Appellate Decision Issued in San Diego Medical Marijuana Dispensary Case

Americans for Safe Access:  “The Fourth District Court of Appeal for California issued a unanimous published ruling today in a landmark medical marijuana case that reverses the conviction of a San Diego dispensary operator, Jovan Jackson, convicted in September 2010 after being denied a defense in state court. Today’s landmark ruling also reversed the lower court’s finding that Jackson was not entitled to a defense, providing the elements for such a defense in future jury trials.  “This landmark decision not only recognizes the right of  dispensaries to exist and provide medical marijuana to their patient members, it also grants a defense for those providers in state court,” said Joe Elford, Chief Counsel with Americans for Safe Access”

See “Jovan Jackson’s Conviction Reversed: California Appeals Court Finds Medical Marijuana Defense Applies To Club Operators, Too.”

By |2015-04-06T18:55:45-07:00October 26th, 2012|California News, Marijuana Crimes, Stories & Articles|Comments Off on Landmark Appellate Decision Issued in San Diego Medical Marijuana Dispensary Case

Raided Marijuana Dispensary Reopens in Portland, Oregon

Oregon Live:  “The Human Collective, a medical marijuana dispensary shut down last month by Washington County authorities, is expected to reopen next week with the same membership fee and similar prices for marijuana.   The new establishment has one key distinction from its predecessor: It’s located in Multnomah County, widely perceived as a friendlier environment for medical marijuana retail outlets.”

By |2012-10-26T07:21:37-07:00October 26th, 2012|Stories & Articles|Comments Off on Raided Marijuana Dispensary Reopens in Portland, Oregon
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