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Authorities Allege Medical Marijuana Stores Profited From Sales

Jim Finnel

Fallen Cannabis Warrior & Ex News Moderator
The operators of nearly a dozen medical marijuana dispensaries in California have been indicted in Los Angeles for allegedly distributed pot for a significant profit.

The federal indictment says owners if the Compassionate Caregivers chain of 7 medicinal marijuana stores took in $95 million during a 3-year period.

Prosecutors say the huge profits were used to buy expensive cars and real estate in Costa Rica.

DEA chief Timothy Landrum says the dispensary operators claimed they were devoted to the medical value of pot but marijuana's financial value was their true motivation."

Prosecutors also alleged that a medical marijuana dispensary in Morro Bay sold more than two million dollars worth of pot during a 1-year period and that 281 minors were among its customers.

Additionally, a doctor who conspired with the shop wrote recommendations approving the teenagers' use of marijuana and was paid a "finder's fee" for each form.

Five men were arrested yesterday but Compassionate Caregivers operators Larry Kristich and James Carberry have eluded authorities.

Federal charges include conspiracy, distribution of marijuana, maintaining a drug establishment, aiding and abetting and money laundering.

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Source: KSBY
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Website: Authorities allege medical marijuana stores profited from sales


New Member
Nobody should make that kind of profit off of patients, so I say good...get the greediest bastards out who are causing this movement so much bad press. This is the sort of publicity they will use to keep that House Bill from getting a fair hearing...If pot were legal and these men made that money on the legit, fine...cooperatives were supposed to be patient run enterprises, not like what is described here...This is why we pay 70-85/eighths at a lot of COOPs.


New Member
When I lived down South, I used to frequent these guys' place in Hollywood (The Yellow House, it used to be Charlie Chaplin's Hollywood house). It was a cash cow. People lined up out the door. They had no limit. Dealers were buying pounds. At the time, it was the only MCD in LA.. a fucking gold mine. It seems Larry and James retired to Costa Rica and cannot be touched. They left a bunch of money behind for the people that got busted.

Ahhh, capitalism... MCD's don't make the market, they simply participate in it.

Here's what the DEA says about it... News from DEA, Domestic Field Divisions, Los Angeles News Releases, 07/17/07

Inside and outside...good pics of The Yellow House in Hollywood.

That was three years ago and I believe the industry is weeding out the "uncompassionate". They understand the rules.

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