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Modesto medical-marijuana operators convicted in federal case
5/17/08|the San Francisco Chronicle| by Henry K. Lee, Chronicle Staff Writer

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.

 

Vicki

So, making a profit selling marijuana as medicine is illegal, but drug companies can make millions on man made, synthetic medicine. How screwed up is that? <---rhetorical question.

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Buzzby

Between dope dealers masquerading as dispensary operators and doctors passing out recommendations to anyone who will pay their fee, it's amazing that medical marijuana is still legal in California.

When this all started 12 years ago, the idea was that medical marijuana patients would band together to form a collective to produce their weed at a reasonable price. What's evolved is a system of greedy dispensary operators ripping off patients by charging street prices (90% of which are due to the weed's illegality) for legal medicine.

A patient collective could produce quality weed for less than $40/oz. I don't know why patients put up with the current dispensary system.

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JohnBoySmoker

You hit the nail on the head. I wonder how many true medical marijuana users there are in California once you've pulled out all the frauds from the system?

Freedom_User

I still think it's just ridiculous. 20 years? In California, they have a saying, "As California goes,so goes the nation". As a wealthy man, sits at the top of the DEA, making huge amounts of money. He realizes just that. How do you draw the line from personal gain, to freedom from men and woman abiding by State laws? If you ask me, the DEA is just a business. A legal, corrupt business.

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JohnBoySmoker

You know what? Maybe if these guys had operated their business as a Medpot distributer instead of an organized crime establishment, they wouldn't be in the trouble they're in now.
The DEA is just a law enforcement agency. Don't try to make them out to be the evil arm of the Horrible Empire.

Buzzby

The director of the DEA is in a civil service job. You don't get rich in civil service jobs.

dedbr

Holy shit.....Both feet as they say......

Buzzby....

Which goes back to a discussion we had a couple of years ago Buzz. If not these guys, who? If they sold between 4 and 9 milliion dollars worth in two years someone is going to step up and fill the void, we all know that.

Now these two face twenty years in jail for being good business men and providing a service or product to the community that it obviously wants and needs.

Johnboy....

To a few of us, that's exactly what they are. They describe us as scum of the earth, so I say "Fuck You" to them and theirs......

Does anybody see a disparity here? They plan on sentencing two guys to twenty years in prison for selling herb. This sure seems like overkill to me. What did they do to deserve 20 fucking years in the pen?


Some Where In Ded Land.............

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JohnBoySmoker

I understand where you're coming from. I'd feel the same way about a cop (any cop) who arrested me for whatever. I'd be wrong though. The people who work for the DEA are just ordinary people like you and me. They have a job to do and are doing that job to the best of their abilities. I don't think that is something you can fault them for.

Here is where the two guys screwed up.....They were making a huge profit, thus violating the STATE law. When this happens, the state can pass the case on to the feds for further action.

Unregistered

This is a comment in reply too the Buddhist, You can get rich off making corrupt deals by the power of the civil service position. Clinton did it with NAFTRA Trade Act and WHITEWATER. An the current presidential administration just stole a TRILLION PLUS.

Bottom line is cannabis is a sacred plant that opens your thoughts when used correctly. They don't want any harmony to intertwine human kind.