Pubdate: Fri, 24 Jun 2005
Source: New York Times (NY)
Copyright: 2005 The New York Times Company
Contact:  http://www.nytimes.com/
Details: http://www.mapinc.org/media/298
Pubdate: 24 Jun 2005
Author: Dean E. Murphy
Bookmark: http://www.mapinc.org/find?115 (Marijuana - California)
Bookmark: http://www.mapinc.org/mmj.htm (Marijuana - Medicinal)

OFFICIALS SAY DRUG RAIDS FOUND CLUBS WERE A FRONT

SAN FRANCISCO, June 23 - Federal authorities said Thursday that they
had cracked the biggest case ever involving the use of medical
marijuana dispensaries in California as a cover for international drug
dealing and money laundering, which they said extended to Canada and
countries in Asia.

"This organization had been operating for over four years," Javier F.
Pena, the special agent in charge of the Drug Enforcement
Administration in San Francisco, said at a news conference. "It is now
dismantled."

In court documents unsealed here, the federal authorities accused a
33-year-old San Francisco man, Vince Ming Wan, of leading a
multimillion-dollar operation in the trafficking of marijuana and
Ecstasy that used three medical marijuana clubs in the city as a front.

United States Attorney Kevin V. Ryan said that an arrest warrant had
been issued for Mr. Wan on charges of conspiracy to distribute more
than 1,000 marijuana plants, but that he remained at large. Twenty
other people, all from San Francisco and its suburbs, were charged
with a variety of crimes, including conspiracy to grow and traffic in
marijuana plants, conspiracy to distribute Ecstasy and conspiracy to
engage in money laundering.

Mr. Ryan said the two-year investigation was continuing and could
result in more arrests and charges. In addition to Mr. Wan, seven
other suspects remained at large on Thursday.

"We're not talking about ill people who may be using marijuana," Mr.
Ryan said. "We're talking about a criminal enterprise engaged in the
widespread distribution of large amounts - millions of dollars, if you
base it on historical evidence - of marijuana and other drugs, and
money laundering their proceeds from these activities."

Agents from the D.E.A., the Internal Revenue Service and other federal
agencies executed search warrants on Wednesday at the three medical
marijuana clubs. Twenty-three residences, businesses and other growing
locations in San Francisco were also searched.

Agents hauled away more than 9,000 marijuana plants. In all, a drug
agency official said, the investigation yielded 18,000 marijuana
plants over the two years with a wholesale value of $17 million. The
official, Special Agent Jose Martinez, said it was the largest drug
investigation ever by federal authorities that involved medical
marijuana dispensaries. In addition, the court documents said, some of
the marijuana was grown in Canada.

Kenneth J. Hines, assistant special agent in charge of the I.R.S. in
Oakland, said the authorities were still tracking financial
transactions in Asia that Mr. Hines said had been funneled through 40
bank accounts at 12 financial institutions by two of the suspects,
Phat Van Vuong, 30, and Richard Wong, 28, both of San Francisco.

Mr. Hines, who declined to name the country or countries that were
involved, said the suspects had also bought automobiles, real estate
and "other high-end items" with the money in an attempt "to disguise
illegal proceeds derived from their activities."

California has allowed the distribution of medical marijuana since
voters approved a statewide ballot measure in 1996, but the state law
is in conflict with federal narcotics laws. Mr. Ryan said the timing
of the investigation, called Operation Urban Harvest, had nothing to
do with a ruling by the United States Supreme Court two weeks ago that
upheld the authority of federal officials over marijuana, even in the
states where it is permitted for medical purposes.

An affidavit unsealed Thursday said that one of the suspects, Enrique
Chan, 26, described in detail how the clubs were used as "a backbone"
for illegal sales. The affidavit said Mr. Chan estimated that only
half of the people who bought medical marijuana were really sick.

"You'll get busted, but you remember, you got to beat the prosecution
in court," Mr. Chan told an undercover agent, according to the
affidavit. "So if it comes down to a battle in court, what are you
gonna do? You're going to bring patients in court, like really sick
patients with cancer, have them sit on the stand for you. And no jury
is gonna try, is gonna convict you." 
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