DEA, IRS, Modesto Police Search Medical Marijuana Business (September 27, 2006)

Wed, 09/27/2006 - 12:48pm — Nathan

Written for the web by Elizabeth Bishop, Senior Internet News Producer
Created: 9/27/2006 10:40:11 AM
Source: http://www.kxtv10.com/storyfull2.aspx?storyid=20305

Agents from the Drug Enforcement Administration, the Internal Revenue Service and the Modesto Police Department have raided what they say is one of the biggest medical marijuana dispensaries in Northern California.

This morning, officers went to the California Healthcare Collective at Fairmont Avenue and McHenry Avenue in Modesto to serve seven search warrants. The search comes in the wake of a number of federal indictments against the owners of the collective.

Agents came out with 12 boxes. There is an ATM and a money-counting machine inside the business. Authorities called a lock smith to help them get into the business's safe.

More information is expected to come from a news conference at 1 p.m.

The raid comes on the heels of a vote by the Modesto City Council Tuesday to close a loophole in an ordinance aimed at banning medical marijuana businesses. Previously, the ban only applied to marijuana dispersaries that made a profit from sales. The California Healthcare Collective claimed it was a non-profit organization. The council changed the ordinance so it now applies to non-profits as well.

Central Valley, California

Thu, 09/28/2006 - 3:17pm — Abi (not verified)

medical marijuana bust in modesto

i was blown away by this bust. i am a medical marijuana smoker. i have fibromyalgia,ensomia,osteoarthritis, rheumatoid arthritis,sleep apnia and migrain headaches.The problem i am alergic to pain medication ,tylenl, ibropofen and all anti-inflamation medication. oops i also suffer from depresson and anxiaty attacks.the closing of this club truely affects my life.

Mon, 10/09/2006 - 1:52pm — Anonymous (not verified)

CLOSING OF THE CLUB

While it is sad that this club has closed had it been running legitamatly it would not be an issue I am a MMJ patiant I suffer from sleep apnia, anxiaty tremors non stop, sever migrains. I live in the stockton area but work in modesto it was nice to be able to get my meds here now I have to drive to sac or frisco or get crap off the streets which are basically useless. I belive that there should be a dispensery in the valley because there are so many patiants who trully need there meds an dont have the ability to drive all over to get them an since this is a law we have the right to our meds just like any other sick person I belive the citys or state need to step up set guide lines or run them themselves since really the issue is money they arent getting there cut (I belive) but that way we can safly get our meds

Sat, 10/14/2006 - 5:54pm — Linda

Nine Plead Not Guilty to Modesto Marijuana Dispensary Charges

MODESTO: Nine Plead Not Guilty to Modesto Marijuana Dispensary Charges

Written for the web by C. Johnson, Internet News Producer ï¿½

Nine individuals from the Modesto area were arraigned in federal court
Friday on 18 indictments related to the possession and distribution of
marijuana.

The charges stem from the September 27th raid of California Healthcare
Collective in Modesto, an illegal mmedical marijuana dispensary,
according to federal authorities. The collective's proprietors, Luke
Anthony Scarmazzo and Ricardo Ruiz Montes, both 26 and from Modesto
were charged with conducting a continuing criminal enterprise,
conspiracy to manufacture and distribute marijuana and firearms
possession in commission of marijuana-trafficking crimes. The two men
are also accused of money laundering.

Also facing marijuana possession and distribution charges are Jose
Malagon, 33; Antonio Malagon, 28; Lucky Jamal Boissiere, 26; Stephen
J. DeMattos, 24 and Monica Valencia, 25, all of Modesto; Bradley Jason
Wickliffe, 28, of Discovery Bay and Brad Heinmiller, 32, of Merced.

The Drug Enforcement Agency (DEA), Internal Revenue Service and
Modesto police served search warrants on the collective, several
financial institutions and 10 other locations in Modesto and Hughson
in their investigation. More than 100 pounds of marijuana, 1,000
marijuana plants, more than $200,000 in cash and 10 firearms were
recovered, according to court documents.

During the investigation, a DEA spokesman said as many as 400 people a
day were going into the collective.

Undercover agents were able to use fake identification and fake
physician prescriptions to buy marijuana. They observed individuals
coming into the shop, buying marijuana and then selling it in the
shop's parking lot.

The collective employed security guards making between $120 and $150 an hour.

There was an ATM and a money-counting machine inside the business.

Quarterly financial statements on record with the city of Modesto
showed the collective took in more than $4.5 million during its
operation.

In a published statement, U.S. Attorney McGregor Scott said, "No
matter how much the defendants would like to cloak their activities
behind California's Proposition 215, this was a drug trafficking
operation, generating millions of dollars in illicit proceeds. Nothing
more, nothing less."

If convicted of the charges, Scarmazzo and Montes face mandatory
20-year prison terms and $1 million fines on the charge of conducting
a criminal enterprise, and mandatory five-year to life terms of
imprisonment and fines of $250,000 for the firearms charges. The other
charges facing all of the defendants carry 5 to 20 year sentences and
substantial fines.

All of the defendants pleaded not guilty.

http://www.news10.net/storyfull2.aspx?storyid=20671

Sat, 10/14/2006 - 5:58pm — Linda

Modesto Bee ; Marijuana dispensary owners, 7 other face..

MODESTO: Marijuana dispensary owners, 7 others face federal charges

By SUSAN HERENDEENBEE STAFF WRITER

Last Updated: October 14, 2006, 05:46:11 AM PDT

Nine people ï¿½ including the owners of a medicinal marijuana clinic in
Modesto that was raided last month ï¿½ pleaded not guilty to drug
charges in federal court Friday in Fresno.

Luke Anthony Scarmazzo, 26, and Ricardo Ruiz Montes, 26, both of
Modesto, are charged with conducting a criminal enterprise at their
business, the California Healthcare Collective on McHenry Avenue.

The clinic, which opened in late 2004 and supplied as much as 4 ounces
of marijuana a day to people with doctors' recommendations, earned
more than $4.5 million while it operated, according to court records.

A defense attorney said the nonprofit clinic operated legally under
Proposition 215, which lets seriously ill Californians use marijuana
for pain relief.

"This is entrapment by the federal government," said attorney Robert
Forkner, who represents Montes.

Federal laws do not permit any marijuana use, and prosecutors argue
that the clinic was little more than a front for drug dealers.

"This was a drug-trafficking operation, generating millions of dollars
in illicit proceeds," U.S. Attorney McGregor W. Scott said in a
statement. "Nothing more, nothing less."

In late September, investigators seized more than 100 pounds of
marijuana, 1,000 marijuana plants, 10 firearms and more than $200,000
from locations in Modesto and Hughson.

The raid came one day after the Modesto City Council discussed its
ongoing efforts to close the clinic by changing zoning laws.

According to prosecutors, undercover officers bought marijuana at the
clinic with fake doctors' recommendations and found marijuana bought
at the clinic in the hands of healthy people.

Forkner said the clinic complied with all laws, paid taxes, opened its
books for government inspection and verified every prescription before
dispensing marijuana.

A grand jury handed down an 18-count indictment against Scarmazzo,
Montes and seven others who are charged with manufacturing and
distributing marijuana.

They are being tried in U.S. District Court in Fresno.

Other defendants include Jose Malagon, 33, and Antonio Malagon, 28,
brothers from Modesto who were employees of the collective.

Stephen J. DeMattos, 24, and Monica Valencia, 25, both of Modesto, are
charged with conspiracy to launder the proceeds of marijuana
trafficking, along with Scarmazzo and Montes.

Others who face charges of manufacturing or possessing marijuana with
the intent to distribute are: Lucky Jamal Boissiere, 26, of Modesto;
Bradley Jason Wickliffe, 28, of Discovery Bay; and Brad Heinmiller,
32, of Merced.

Scarmazzo and Montes also face firearms charges. If convicted, they
face mandatory sentences of 20 years to life in prison and fines of as
much as $1.25 million. The other defendants face sentences of five to
20 years and fines of as much as $1 million, if convicted.

Bee staff writer Susan Herendeen can be reached at 578-2338 or
sherendeen@modbee.com

http://www.modbee.com/local/story/12897425p-13557010c.html

Wed, 10/18/2006 - 4:38pm — Nathan

Update on Modesto Raid: Court Support on November 6th, 2006

I've been told that all of the defendants in this case will appear in court on November 6th. As of yesterday (October 17th), all were out on bail except for Luke.

More information To Be Announced soon.

Fri, 10/20/2006 - 8:07pm — Pineapple 3 (not verified)

What ever came of the

What ever came of the dispensery called 28/16 also in Modesto???

Mon, 10/23/2006 - 8:09am — Anonymous (not verified)

28/16

they got taken the same day the healthcare collective got taken down. i know the owners of the 28/16. they didn't really get hit too hard since they were kind of out of there before the cops showed up. cops didn't really have much on them.

The Compassionate Coalition

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