Holder explained that the memo was meant as a request to U.S. attorneys to lay off medical pot where there was "clear and unambiguous" compliance with state law. Medical marijuana was by no means embraced — "no state can authorize violations of federal law," the memo reminded — and though U.S. attorneys should focus on other crimes before hauling cancer patients into court, "nothing herein precludes investigation or prosecution" of them or anyone else.
This memo had "far-reaching political and legal implications," the New York Times reported. It must be so, because Republicans were pissed. "The administration is tacitly condoning the use of marijuana in the United States," fumed Rep. Lamar Smith (R-Texas). If so, the Justice Department still gave nothing of substance for defense attorneys. "It was not, 'You must lay off' — it's 'You should probably lay off,'" according to UC Hastings law professor Rory Little. Lost in the hubbub was the DEA's own stance, issued via press release: "We will continue to identify and investigate any criminal organization or individual who unlawfully grows, markets, or distributes marijuana or other dangerous drugs."
Associated Press
Attorney General Eric Holder and local U.S. Attorney Melinda Haag say their stance is clear: Pot is illegal and can be prosecuted at any time.
Frank Gaglione
Scott Feil says the feds are pursuing a vindictive prosecution against him.
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The Ogden memo had an impact on Erik Stacy, Robert Dodson, Charles Kisor, Charles Klause, and Geoffrey Bliss. In 2010, they decided to open a dispensary in Ridgecrest, a small desert town in Kern County best-known for the nearby Navy missile- and rocket-testing range at China Lake.
Their dispensary, B&C Natural Things, did not last long. Somehow, a local police department investigation into marijuana cultivation operations was handed over to investigators from the U.S. Navy Criminal Investigative Service, stationed at China Lake. That made it a federal case, which began on Oct. 26, 2009, one week to the day after the Ogden memo. That was when investigators thought Stacy, who had a doctor's recommendation, grew pot in his home. (Through their attorneys, the defendants declined to comment.)
According to the criminal complaint, it wasn't until December 2009, when one of the defendants made the first of three cash deposits (with money that "smelled like marijuana," according to court filings) into a business bank account for B&C Natural Things that the feds began to build their case.
The feds sent in a confidential informant, who acquired four ounces of pot from Stacy on three occasions. Yet no mention of a monetary transaction is made in the feds' filings, nor is there mention of whether the informant had a medical recommendation. That means the deal could have been legal under state law.
The defendants certainly thought it was. "We have a collective ... and it's legal," one of them was heard saying on a wiretap. In raids conducted on April 27, 2010, on their homes and the dispensary, authorities found a total of 1,040 marijuana plants at two locations. That may sound like a large-scale grow, but there were enough medical recommendations for it to be all legal under state law, according to attorney Allison Margolin, who is representing Kisor.
It's a similar situation in the case of USA vs. Joseph Nolan, Mark McGrath, Dustin York, Joseph Taylor and Jeremy Dunn, whose grand jury indictment for Controlled Substances Act violations was returned on April 1, 2010. During a bust the month before, agents found 1,161 plants, 54.8 pounds of pot, and 15 gallons of hash oil at a Bakersfield warehouse. Again, that's a substantial amount of marijuana — but again, it's legal if the defendants had on-site the requisite number of recommendations, according to Margolin, who is also representing Taylor.
In any event, investigators found no evidence of illegal sales, such as pounds shipped out of state or marijuana sold outside of legal dispensaries. Indeed, the DEA found no evidence any of the defendants had sold pot at all, aside from a check made out to the Blue Banana dispensary in Northridge.
In the counties that comprise Northern California's pot country, government helicopters are so routine as to be noted only by outsiders. The locals in Lake County knew something was up, however, when four helicopters and two dozen black Cadillac Escalades — a surefire sign of a big federal raid — converged on Tom Carter's home near Upper Lake on August 19, 2009.
The feds claimed that one of his employees, Brett Bassignani, allegedly sold 500 marijuana seedlings, known as "clones" in growers' parlance, to an undercover DEA agent who had posed as the owner of a legal dispensary. Some interpretations would suggest that the transaction would have been legal even if nobody had medical recommendations: Clones and seedlings are not considered marijuana under Senate Bill 420, which states "only the mature processed flowers of female cannabis plants ... shall be considered when determining allowable quantities of marijuana."
Later that day, the feds also hit the home of Scott and Diana Feil as well as that of Steven Swanson, a retired New York City police detective who managed United Medical Caregivers Clinic, the Los Angeles dispensary, after Feil left the business in 2005. Los Angeles police had raided it twice, on one occasion neglecting to tell the judge signing the warrant that it was a legal storefront dispensary before seizing $186,000. That was a key point in the Ninth Circuit's decision to uphold Feil's lawsuit against the government and order the return of the cash. No charges in Los Angeles were ever filed, yet the federal government later indicted the Feils and Swanson for conspiring to sell 100 kilos of marijuana at UMCC over a six-year period. (For comparison, consider that a small-time dispensary with 100 patients a day, roughly the average in San Francisco, could dispense 100 kilos in less than a year.)