Licensed Washington grower accused of running illicit outfit

The 35-year-old man held licenses in the "Cannabis Producer/Processor Tier 2" category.

Police seized nearly 8,000 marijuana plants and multiple pounds of processed cannabis from a licensed Washington state producer who allegedly ran an illegal distribution operation from a massive warehouse while maintaining legal business permits, according to local station KATU.

The six-month investigation culminated Dec. 11 when authorities raided a 17,000-square-foot facility in Tacoma, where they discovered a score violations of state cannabis regulations, the Tacoma Police Department said in a statement.

Law enforcement seized 7,789 marijuana plants, manufactured cannabis products, three vehicles, a handgun and an undisclosed amount of cash, according to the news release. The operation was licensed as a “Cannabis Producer/Processor Tier 2” facility by Washington state regulators but was allegedly diverting and selling “significant quantities of cannabis off the record into the black market.”

A 35-year-old man who held the license was arrested and charged with unlawful possession of a controlled substance with intent to deliver and unlawful manufacturing of a controlled substance, The News Tribune reported.

“According to my client, if there is anything off, it’s not his fault. He’s doing everything according to the law,” defense attorney Jay Berneburg told the outlet.

The investigation began in June after police and the Washington State Liquor and Cannabis Board were tipped off about potential violations, charging documents show.

Prosecutors said cannabis products were found in nonlicensed locations and traceability records didn’t match reported deliveries. Many plants lacked required tracking tags, and surveillance cameras weren’t monitoring all required areas, violating state regulations.

The suspect appeared Thursday in Pierce County Superior Court, where Commissioner Philip Thornton ordered his release on personal recognizance, The News Tribune reported.

Multiple agencies participated in the investigation, including the Washington State LCB Enforcement Unit, Pierce County Sheriff’s Department Special Investigations Unit, and the Tacoma Police Hazardous Environments and Tactics Team.

Cannabis diversion and trafficking are not new issues, and authorities aren’t afraid to make an example out of someone, especially in mature markets where the temptation to divert glut exists. Additionally, state law requires cannabis licensees to maintain strict surveillance coverage in areas where plants are grown, processed, stored or destroyed. Like many other states, all plants must be tagged and tracked from seed to sale.

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Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


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