IRS opens audit of Denver medical-marijuana dispensary
Category: News | Posted on Tue, April, 26th 2011 by THCFinder
The Internal Revenue Service has opened an audit of a Denver medical-marijuana dispensary, the latest action in what one observer calls a "guerrilla campaign" by the federal government to push back against the cannabis industry.
The audit is believed to be the first of its kind in Colorado and follows audits of numerous medical-marijuana dispensaries in California and other states.
Investigators are examining whether it was unlawful for the dispensaries — which are illegal enterprises under federal law — to deduct business expenses from their federal taxes, said Jim Marty, a Denver accountant who represents the Colorado dispensary.
Marty declined to name the dispensary or say where it is located. Marty said the dispensary was notified of the audit earlier this month.
"So far," he said, "the IRS has been pretty cooperative. . . . The client had good records."
Marty said he expects the IRS to look broadly at dispensaries in Colorado. If so, that would mirror what the agency has done in California, where tax attorney Henry Wykowski said the IRS has undertaken at least 30 audits of dispensaries.
The audits are also part of a bigger series of events in which the federal government appears to be more actively asserting itself in state-legal marijuana businesses.
In recent months, U.S. attorneys in Washington state and California have sent letters to state officials there warning them that efforts to regulate medical-marijuana businesses will not change the federal government's disapproval of those businesses.
In one letter, U.S. attorneys in Washington warn Gov. Christine Gregoire that state employees who regulate the businesses "would not be immune from liability."
In addition to the IRS audits, the federal government has asserted its authority by raiding medical-marijuana dispensaries. Last month, federal agents served 26 criminal search warrants in Montana during a drug-trafficking investigation that focused on dispensaries. The agents allege the dispensaries were also engaged in other illegal activities
Judge doubts Alaska trooper could have sniffed out marijuana
Category: News | Posted on Mon, April, 25th 2011 by THCFinder
An Alaska trooper's reported ability to sniff out marijuana grow operations from hundreds of feet away is under attack in federal court.
In a ruling Friday, U.S. District Judge John Sedwick concluded the pot-smelling power of investigator Kyle Young wasn't supported by the facts in a Mat-Su marijuana case, and shouldn't have been used as justification for a search warrant.
As a result, Sedwick threw out the seized evidence -- including some 500 marijuana plants. Unless prosecutors appeal, the government's drug case against Trace Rae and Jennifer Anne Thoms of Wasilla is gutted.
"This time, the tables turned," defense lawyer Rex Butler, who represents Trace Thoms, said Sunday. "This is a huge case, especially for the Valley."
He said it carries implications for numerous cases that were based on trooper Young's reputed marijuana-detecting skill.
Young, who has more than 20 years with the troopers, maintains he did smell marijuana that day in February 2010.
"It was fairly strong. Smelled it on the air. Smelled it downwind of that place," Young said in an interview Sunday. "For them to rule that I couldn't, to me that says they are saying I am lying or that I was mistaken. And neither was correct."
He estimated that he's investigated and seized between 100 to 150 Alaska marijuana grow operations since 1998 that he located by smell.
Trace and Jennifer Thoms each face three drug counts, including manufacturing marijuana, as well as a charge of money laundering conspiracy in which they are accused of disguising more than $1 million in marijuana proceeds. In addition, Jennifer Thoms separately faces 14 money laundering counts.
The indictment against them also seeks forfeiture of various properties including their home, nearly $100,000, five snowmachines, a Ford F-250, a GMC Yukon Denali, a Rolex gold watch, and a 14-karat diamond wedding ring set.
Two more Florida Gators arrested on marijuana charges
Category: News | Posted on Mon, April, 25th 2011 by THCFinder
Florida cornerback Janoris Jenkins has twice been arrested since January on marijuana charges, including on Saturday. But he’s not alone.
Redshirt freshman Chris Martin and redshirt sophomore Kedric Johnson were also hit with misdemeanor marijuana possession charges, according to The Palm Beach Post. Neither player’s arrest was known previously.
Janoris Jenkins was arrested for a second time because of marijuana possession.
Gainesville police arrested Martin on Jan. 29 after officers smelled the marijuana coming from his vehicle. Martin is expected to compete for a starting job at linebacker or defensive end. Johnson, a backup linebacker, was arrested on Jan. 9 after an officer pulled him over for speeding and smelled marijuana. He showed them two grams of the drug in his glove compartment, according to the police report obtained by The Palm Beach Post.
Both players agreed to deferred prosecution and the cases did not go to trial.
On Saturday, Jenkins was arrested and charged with misdemeanor possession of less than 20 grams. He has a May 12 court date. In January, officers caught him with the drug in a bathroom at a nightclub. He pleaded no contest and agreed to deferred prosecution.
The combination of arrests does not give first-year coach Will Muschamp a good start. However, it continues a history of arrests in the program. Under Urban Meyer, there were 25 players arrested in six seasons.
World's oldest marijuana stash confirmed to have psychoactive properties
Nearly two pounds of still-green plant material found in a 2,700-year-old grave in the Gobi Desert has just been identified as the world's oldest marijuana stash, according to a paper in the latest issue of the Journal of Experimental Botany.
A barrage of tests proves the marijuana possessed potent psychoactive properties and casts doubt on the theory that the ancients only grew the plant for hemp in order to make clothing, rope and other objects.
They apparently were getting high too.
Lead author Ethan Russo told Discovery News that the marijuana "is quite similar" to what's grown today.
"We know from both the chemical analysis and genetics that it could produce THC (tetrahydrocannabinolic acid synthase, the main psychoactive chemical in the plant)," he explained, adding that no one could feel its effects today, due to decomposition over the millennia.
DOJ smack down of medical marijuana continues, raising questions in Colorado
Could Colorado State employees who work in the regulatory end of the medical marijuana business be prosecuted for their role in what the federal government increasingly seems to view as an illegal enterprise?
According to Department of Justice attorneys in Washington State, it is not outside the realm of possibility.
As the Washington Legislature debated legislation to broaden that state’s medical marijuana operations, Governor Christine Gregoire wrote a letter to U.S. Attorney General Eric Holder asking for guidance.
Holder, of course, did not write back. Instead Gregoire got a letter from U.S. Attorneys Jenny A. Durkan and Michael C. Ormsby of the U.S. Department of Justice Eastern District of Washington.
In this letter, dated April 14, the attorneys write that after consultation with Holder, the feds are prepared to enforce the Controlled Substances Act “vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. The Department’s investigative and prosecutorial resources will continue to be directed toward these objectives.”
The letter makes it clear it is not just people involved directly in the medical marijuana trade who might be prosecuted. The letter specifically states that landlords and financiers could be prosecuted.
Then, the zinger: “In addition, state employees who conducted activities mandated by the Washington legislative proposals would not be immune from liability under the CSA.”
Oklahoma Senate Passes Life Sentence for Hash Making
The Oklahoma Senate Wednesday passed a bill that would mandate a sentence of up to life in prison for making hashish out of marijuana. The House has already approved the measure, but it must go back to the lower chamber for a final vote.
Making this could get you life in prison in Oklahoma if a current bill becomes law
The measure sailed through the Senate with little debate, passing on a vote of 44-2. The House also approved the measure by a large margin, passing it on a vote of 75-18.
The bill, House Bill 1798, creates a new felony of converting marijuana into hash. A first conviction could garner a $50,000 fine and prison sentence of two years to life. Second or subsequent convictions would net doubled penalties.
Oklahoma legislative analysts said the bill would cost the state $56 per day, or more than $20,000 a year, for each day someone is imprisoned. At that rate, if Oklahoma imprisoned five hash makers for 10 years each, the bill to taxpayers would be one million dollars.
The bill was the brainchild of the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD), which says on its web site that its mission is "to serve the citizens of Oklahoma in the quest for a drug-free state."
According to the Tulsa World, OBNDD said there have been "few" cases of hash making in the Sooner State. But OBNDD spokesman Mark Woodward said the goal of the bill is to "send a message" that illegal drugs won't be tolerated in Oklahoma.
Neither, apparently, will common sense or a sense of proportionality.
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