U.S. Attorneys in California have announced a campaign to target medical marijuana, suggesting the beginning of the end for the medical marijuana industry.
By Phillip Smith, Drug War Chronicle
Posted on October 8, 2011
Signaling an intensification of federal government targeting of
medical marijuana providers, the four US Attorneys in California Friday
announced a campaign of "coordinated enforcement actions targeting the
illegal operations of the commercial marijuana industry in California."
The announcement came at a Sacramento news conference.
The federal prosecutors said their enforcement actions would rely on
pursuing civil forfeiture lawsuits against properties where dispensaries
are located, threatening letters to dispensary landlords, and criminal
prosecutions. The prosecutors said recent dispensary busts in Fresno,
Los Angeles, Sacramento and San Diego were part of the enforcement
campaign.
The feds said that enforcement actions would vary across regions of the
state and that they would be working with federal law enforcement and
local officials to crack down. The Department of Justice in Washington
made clear that this was not an instance of prosecutors going off the
reservation.
"The actions taken today in California by our US Attorneys and their law
enforcement partners are consistent with the Department's commitment to
enforcing existing federal laws, including the
Controlled Substances
Act (CSA), in all states," said Deputy Attorney General James Cole. "The
department has maintained that we will not focus our investigative and
prosecutorial resources on individual patients with serious illnesses
like cancer or their immediate caregivers. However, US Attorneys
continue to have the authority to prosecute significant violations of
the CSA, and related federal laws."
Medical marijuana supporters were quick to charge the Obama
administration with waging a renewed war on them and reneging on its
promises to not interfere in states where medical marijuana is legal.
"Aggressive tactics like these are a completely inappropriate use of
prosecutorial discretion by the Obama administration," said Joe Elford,
chief counsel with
Americans for Safe Access (ASA),
the country's largest medical marijuana advocacy group. "
President
Obama must answer for his contradictory policy on medical marijuana."
On
the campaign trail and in the White House, President Obama pledged that
he was "not going to be using Justice Department resources to try to
circumvent state [medical marijuana] laws."
"It is unconscionable that the federal government would override local
and state laws to enforce its will over the will of the people," said
ASA spokesperson Kris Hermes. "States must be allowed to enforce their
own laws without harmful interference from the Obama administration."
"The Obama administration's latest moves strongly suggest that their
medical marijuana policies are now being driven by overzealous
prosecutors and the anti-marijuana ideologues who dominated policymaking
in past administrations," said Ethan Nadelmann, executive director of
the
Drug Policy Alliance.
"
Barack Obama is betraying promises made when he ran for president and
turning his back on the sensible policies announced during his first
year in office. Instead of encouraging state and local authorities to
regulate medical marijuana distribution in the interests of public
safety and health, his administration seems determined to recriminalize
as much as possible. It all adds up to bad policy, bad politics and bad
faith."
Large medical marijuana dispensary operations are not health care
providers but criminal organizations hiding behind patients, the
prosecutors claimed Friday.
"Large commercial operations cloak their moneymaking activities in the
guise of helping sick people when in fact they are helping themselves,"
said Benjamin Wagner, US Attorney for the Eastern District of
California. "Our interest is in enforcing federal criminal law, not
prosecuting seriously sick people and those who are caring for them. We
are making these announcements together today so that the message is
absolutely clear that commercial marijuana operations are illegal under
federal law, and that we will enforce federal law."
"The California marijuana industry is not about providing medicine to
the sick," claimed Laura Duffy, US Attorney for the Southern District of
California. "It's a pervasive for-profit industry that violates federal
law. In addition to damaging our environment, this industry is creating
significant negative consequences, in California and throughout the
nation. As the number one marijuana producing state in the country,
California is exporting not just marijuana but all the serious
repercussions that come with it, including significant public safety
issues and perhaps irreparable harm to our youth."
The prosecutors said they had sent out "dozens" of threat letters to
dispensary and grow-op landlords in the past few days. In the Southern
and Eastern districts, they targeted building owners, while in the
Central district they sent letters to landlords "in selected cities
where officials have requested federal assistance." In the Northern
district, they targeted their threat letters to landlords of
dispensaries within 1,000 feet of schools or parks, but warned "we will
almost certainly be taking action against others."
The prosecutors also said they had already filed seven civil forfeiture
complaints against properties where landlords allow dispensaries to
operate. One complaint alleged that an Orange County strip mall had
eight dispensaries and that recalcitrant city officials had spent
hundreds of thousands of dollars trying to shut them down.
One letter targeted the landlord for the Marin Alliance for Medical
Marijuana (MAMM) in Fairfax, which has been operating with the support
of the city and without complaint since 1996. In a letter to MAMM's
landlord, the US Attorney for Northern California warned that the
dispensary was operating within a "prohibited distance of a park." The
letter threatened MAMM's landlord with up to 40 years in federal prison,
seizure of his property, and forfeiture of all rental proceeds for the
last 15 years if he doesn't evict MAMM.
Similar letters have gone out to other dispensary landlords warning them
of pending federal action because their tenants are too close to
schools. The dispensaries are operating in accord with California law,
which treats them like liquor stores and bars them from operating within
600 feet of a school, but federal law imposes additional penalties for
the distribution of controlled substances with 1,000 feet of schools,
playgrounds, and public parks. MAMM is situated more than 600 feet but
less than 1,000 feet from Bolinas Park in Fairfax.
"This is nuts," said Greg Anton, attorney for the Marin Alliance and its
director, Lynnette Shaw. "There's a dispensary near where I live that
sells guns, narcotics, alcohol and tobacco and it's full of children.
It's called Walmart, and it's safe. So is Lynnette's place. She's proven
that over 15 years."
"This is an outrageous abuse of law enforcement resources for the DOJ to
use property forfeiture to enforce meddlesome, nanny-state
regulations," said
California NORML director
Dale Gieringer. "The federal government has no business dictating local
zoning decisions. No one has any problems with the Marin Alliance
except the bureaucrats in Washington."
The DEA is also along for the ride. "The DEA and our partners are
committed to attacking large-scale drug trafficking organizations,
including those that attempt to use state or local law to shield their
illicit activities from federal law enforcement and prosecution," said
DEA Administrator Michele Leonhart. "Congress has determined that
marijuana is a dangerous drug and that its distribution and sale is a
serious crime. It also provides a significant source of revenue for
violent gangs and drug organizations. The DEA will not look the other
way while these criminal organizations conduct their illicit schemes
under the false pretense of legitimate business."
And so is the IRS. "IRS Criminal Investigation is proud to work with our
law enforcement partners and lend its financial expertise to this
effort," said IRS chief of criminal enforcement Victor Song. "We will
continue to use the federal asset forfeiture laws to take the profits
from criminal enterprises."
Friday's announcement of a federal crackdown is just the latest in a
series of moves against medical marijuana providers by the Obama
administration. The Department of the Treasury has been busily scaring
banks into shutting down the accounts of providers in California and
Colorado, the Department of Justice is aggressively prosecuting
dispensary operators in Montana and elsewhere, and the IRS is attempting
to drive dispensaries out of business by denying them standard business
expense deductions -- Oakland's Harborside Health center was just this
week hit with a $2.5 million tax bill after the IRS disallowed its
standard business deductions.
Meanwhile, the administration has continued to block federal approval of
medical marijuana, with the DEA recently rejecting a nine-year-old
petition to reschedule pot, saying it would only accept large-scale,
controlled FDA trials. But at the same time, the DEA has acted to block
such trials by refusing to allow a private production facility to supply
marijuana for medical research. The only existing source for marijuana
for research purposes is the National Institutes on Drug Abuse, but it
recently blocked a request for marijuana to study its effects on
Post-Traumatic Stress Disorder, saying it has no intention of allowing
studies that would develop marijuana for medicinal purposes.
"How can the Obama administration say that it's fine for sick people to
use this proven medicine, and yet tell them they can't have any legal
place to get it?" asked Rob Kampia, executive director of the
Marijuana Policy Project. "Medical marijuana isn't going away. Over 70% of Americans support making medical marijuana legal, and 16 states allow it."
But not the federal government. Not under George Bush and, it is
increasingly clear, not under Barack Obama. With Obama facing no
challengers in the Democratic primary and with reform-friendly
Republicans unlikely to win the Republican nomination, it appears that
medical marijuana is going to be condemned to wander through the
political wilderness for the foreseeable future.
The question now becomes whether any sort of response can stem the
federal onslaught, and just what that response might be. Or does the
dispensary scene just wither away and die?