U.S. Attorney Praises Verdict In Modesto Marijuana Store Case

[Jim Finnel]

U.S. Attorney McGregor Scott on Friday called two Modesto medical marijuana providers the "poster children" for problems with California's Compassionate Use law.

He praised a Fresno jury for convicting Ricardo Montes and Luke Scarmazzo on Thursday on federal drug trafficking charges, one of which carries a minimum sentence of 20 years.

"These were drug dealers selling marijuana. This case is that simple," Scott said.

The attorney took aim at Montes' and Scarmazzo's defense during their trial, in which their lawyers argued that their business was "aboveboard" and in compliance with state law.

Scott argued that Montes' and Scarmazzo's California Healthcare Collective flouted state law, too, because it turned a $9 million profit from 2004 to 2006. State law requires that medical marijuana dispensaries operate as nonprofit establishments.

"It is absolutely farcical for guys like this ... to say that they were operating in full compliance of state law," Scott said.

Robert Forkner, Montes' attorney, disputed Scott's characterization of the business. Forkner said he plans to appeal the verdict and ask for a new trial.

"California Healthcare Collective was incorporated in the state of California," Forkner said. "They were issued a business license in the city of Modesto. They paid the IRS over $1 million in taxes. Not one time did the state of California or the city of Modesto tell them they were in violation of state law."

Government and law enforcement leaders from Stanislaus County flanked Scott during a news conference at the Modesto Police Department. They thanked federal agents for conducting an undercover operation to gather evidence against the collective and trumpeted the verdict.

"We will support the efforts of law enforcement to make sure organizations like this are not about to victimize our community," said Modesto Mayor Jim Ridenour, who voted to ban medical marijuana clinics from doing business in the city two years ago.

County District Attorney Birgit Fladager said her office could have prosecuted the case in state court, but agreed that the federal route was preferable because it offered stiffer sentences and it opened the door for the Department of Justice to conduct the investigation.

Montes and Scarmazzo, both 27, drew the attention of local authorities when they opened their dispensary on McHenry Avenue in 2004, obtaining a business license as a health store. Police closely watched the business, documenting various run-ins with officers and complaints from neighbors.

Modesto Police Chief Roy Wasden called the Drug Enforcement Administration for help in investigating the business, officers said Friday.


News Hawk: User: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: The Modesto Bee
Copyright: 2008 The Modesto Bee
Contact: ModBee.com
Website: The Modesto Bee | U.S. attorney praises verdict in Modesto marijuana store case

 

[hood1]

The entire healthcare world is for making profit look at legal drugs thousand of percent profit! But here come the feds they say you cannot sell MJ for profit or you will go to jail. How stupid can you be I still say we need to put the feds in jail for stripping us of our rights as Americans FREEDOM OF CHOICE............

 

[Boss]

People need to realize what non profit means. It does not mean people work for free, or cannot make a profit over actual costs. You can make profit, but it must go back into the organization through various investments for the future, raises, benefits, expansion etc. All salaries need to be approved by a board, as well as increases. Look into the YMCA, they have very sneaky ways of staying "Non-Profit" but because of who they are, nobody looks into it.

I think that people that run these clubs either abide strictly to the not for profit laws, or go to prison as drug dealers. If they use this hard fought campaign to take advantage of the system, and medical users, they should be made exaples of. Period.

However, I think that ALL evidence must be admitted into court and heard, so that the feds cannot eliminate certain aspects of the defence to ensure a conviction.

We have a lot of clarification work to do.

 

[hood1]

I know what a non-profit is and how it works. But our government has allowed major drug (legal) companies to charge anything they want. And MJ is limited to be non profit. I still feel this is another stupid law. Keeps the little man down while the one protected by PAC paid for representation can do what ever they want. Double standard intact!

 

[Weed420]

There is no such think as nonprofit in this country anymore. True nonprofit has no paid employees. In any nonprofit there is always a couple people at the top of the food chain who are getting very well paid.
Cali needs to use a little common sense here. Making a profit is the American way. It ends up being abused but with what should be open competition in would be fair to the consumers. Which is what this is all supposed to be about.

 

[zolar]

most local hospitals are nonprofits but if you get a full annual report and read carefully they usually have some kind opf reserve account that has millions in it and is used to even out cash flows or some other label that passes the nonprofit rules

 

[Weed420]

And of course you look at the salaries of the people working there and its definitely for profit.

 

[hood1]

Help write Micheal Moore and ask him as I have done to make a Documentary on the War on Drugs. Google his name and send him a message to help it would make a hell of a story and get lots of attention..