Publish to Newswire
Add an EventFrom the Open-Publishing Calendar
From the Open-Publishing Newswire
Indybay Feature
Modesto medical-marijuana operators convicted in federal case
"California's medical marijuana law clearly sets out that making a profit selling marijuana is illegal," Scott said. "These two set out to make as much money as they could as drug dealers, plain and simple."
Modesto medical-marijuana operators convicted in federal case
Henry K. Lee, Chronicle Staff Writer
Saturday, May 17, 2008
(05-16) 11:07 PDT FRESNO -- Two Modesto men are facing mandatory 20-year prison sentences after being convicted of running a medical-marijuana operation that federal prosecutors labeled a criminal enterprise, authorities said today.
Luke Anthony Scarmazzo, 28, and Ricardo Ruiz Montes, 28, were convicted by a federal jury Fresno on Thursday of conducting a continuing criminal enterprise, growing marijuana and possessing marijuana with the intent to distribute.
The conviction for running a criminal enterprise carries a mandatory sentence of at least 20 years. U.S. District Judge Oliver Wanger is to sentence both men Aug. 4.
Federal officials said the case sends a message to marijuana growers and dealers who believe they are shielded from prosecution under the California law legalizing medical marijuana use.
"Scarmazzo and Montes made millions by exploiting and hiding behind California's medical marijuana law," said McGregor Scott, U.S. attorney in Sacramento. "In this case, there was no conflict between state and federal law, as their conduct was illegal under both.
"California's medical marijuana law clearly sets out that making a profit selling marijuana is illegal," Scott said. "These two set out to make as much money as they could as drug dealers, plain and simple."
Scarmazzo and Montes obtained a business license from the city of Modesto by falsely representing that their California Healthcare Collective would engage in "retail sales of natural health-care products," authorities said. In reality, they limited their business to marijuana sales, authorities said.
The collective filed papers with Modesto stating that it earned more than $4.5 million while operating in the Central Valley city from 2004 to 2006, investigators said. But the evidence at trial showed that the defendants actually generated more than $9 million in sales.
Much of the money was used for personal purchases, such as Scarmazzo's $184,000 Mercedes-Benz, prosecutors said.
The jury found the men not guilty of possessing firearms in furtherance of a drug trafficking crimes. The panel could not reach a verdict on whether the men had conspired to distribute marijuana and possess marijuana with the intent to distribute.
Federal prosecutors are seeking forfeiture of more than $200,000 in seized assets.
E-mail Henry K. Lee at hlee [at] sfchronicle.com.
Henry K. Lee, Chronicle Staff Writer
Saturday, May 17, 2008
(05-16) 11:07 PDT FRESNO -- Two Modesto men are facing mandatory 20-year prison sentences after being convicted of running a medical-marijuana operation that federal prosecutors labeled a criminal enterprise, authorities said today.
Luke Anthony Scarmazzo, 28, and Ricardo Ruiz Montes, 28, were convicted by a federal jury Fresno on Thursday of conducting a continuing criminal enterprise, growing marijuana and possessing marijuana with the intent to distribute.
The conviction for running a criminal enterprise carries a mandatory sentence of at least 20 years. U.S. District Judge Oliver Wanger is to sentence both men Aug. 4.
Federal officials said the case sends a message to marijuana growers and dealers who believe they are shielded from prosecution under the California law legalizing medical marijuana use.
"Scarmazzo and Montes made millions by exploiting and hiding behind California's medical marijuana law," said McGregor Scott, U.S. attorney in Sacramento. "In this case, there was no conflict between state and federal law, as their conduct was illegal under both.
"California's medical marijuana law clearly sets out that making a profit selling marijuana is illegal," Scott said. "These two set out to make as much money as they could as drug dealers, plain and simple."
Scarmazzo and Montes obtained a business license from the city of Modesto by falsely representing that their California Healthcare Collective would engage in "retail sales of natural health-care products," authorities said. In reality, they limited their business to marijuana sales, authorities said.
The collective filed papers with Modesto stating that it earned more than $4.5 million while operating in the Central Valley city from 2004 to 2006, investigators said. But the evidence at trial showed that the defendants actually generated more than $9 million in sales.
Much of the money was used for personal purchases, such as Scarmazzo's $184,000 Mercedes-Benz, prosecutors said.
The jury found the men not guilty of possessing firearms in furtherance of a drug trafficking crimes. The panel could not reach a verdict on whether the men had conspired to distribute marijuana and possess marijuana with the intent to distribute.
Federal prosecutors are seeking forfeiture of more than $200,000 in seized assets.
E-mail Henry K. Lee at hlee [at] sfchronicle.com.
For more information:
http://www.sfgate.com/cgi-bin/article.cgi?...
We are 100% volunteer and depend on your participation to sustain our efforts!
Donate
$115.00 donated
in the past month
Get Involved
If you'd like to help with maintaining or developing the website, contact us.
Publish
Publish your stories and upcoming events on Indybay.
Topics
More
Search Indybay's Archives
Advanced Search
►
▼
IMC Network
Shouldn't the headline read: "Fraudulent medical Marijuana grow operation conviction endangers medical marijuana growers by creating 'legitimate' (term used excedingly loosely) federal convictions"?