The legal cannabis market in Colorado has made it easy for smugglers to emerge. With states surrounding Colorado still slow to adopt new cannabis laws, a black market for high-grade cannabis is open. One ring has been closed.
Per The Cannabist
A Denver grand jury has indicted 62 people accused in a marijuana trafficking organization that reaped millions of dollars by illegally growing pot and then selling it out of state over a period of four years.
Group members also allegedly engaged in financial crimes, luring former Denver Broncos tight end Joel Dreessen and other investors by telling them their operation was legal.
It was the largest marijuana bust in Colorado since recreational marijuana was legalized in 2014, and it reflected an increased law enforcement focus on gray market marijuana growers who export their product beyond state lines.
A series of large-scale busts have targeted gangs growing without state sanction and selling the product in states where marijuana remains illegal.
The most recent took place when Michael Stonehouse, a Castle Rock resident, and 15 others were arrested in March, accused of illegally growing, packaging and distributing millions of dollars’ worth of marijuana across state lines.
Andrew Freedman, a cannabis regulation consultant for states and cities, said he is hopeful that state legislation passed this year will make it more difficult for criminals to grow quantities of weed bound for the gray market while pretending to have a legal interest in the business.
Wednesday’s indictment was triggered by a tip to Denver police in 2014.
The subsequent investigation involving local, state and federal law enforcement led to the execution of nearly 150 search warrants over 11 months in homes and warehouses throughout the metro area.
So far, 43 people are in custody; the rest are at large.
“We stand here today to send a message. … We will not tolerate the illegal marijuana market in Colorado,” said David Schiller, an assistant special agent with the Drug Enforcement Administration.
The indictment, filed June 9, resulted in the seizure of nearly 2,500 illegally cultivated marijuana plants and 4,000 pounds of marijuana.
“This case is a prime example that the black market for marijuana has not gone away since recreational marijuana was legalized in our state,” said Cynthia Coffman, Colorado Attorney General, who announced the bust Wednesday.
The ring was mostly made up of Coloradans, some of whom went to high school together and played poker together. The conditions of their acquaintance led to the operation being dubbed “Toker Poker.”
Toker Poker is also the name of a “all purpose” pot smoker’s tool, which includes a stainless steel tamper.
A dozen businesses operated by the ring, including a marijuana grow supply store and purported property management companies, are also named in the indictment.
Members did not get licensing needed to grow and sell legally in Colorado, and then they sold the marijuana in states where pot is illegal, including Texas, Kansas, Nebraska and Ohio, the indictment said.
Group members also allegedly engaged in financial crimes, luring investors, including former Colorado State University football teammates Dreessen and Erik Pears.
A statement by Dreessen’s attorney said he “was an innocent lender to a business he was told was both lawful and properly licensed. Joel has been repaid all funds he provided and is glad to have this matter behind him.”
A number of those indicted are related to one another.