Pubdate: Wed, 18 Jul 2007
Source: Los Angeles Times (CA)
Copyright: 2007 Los Angeles Times
Contact:  http://www.latimes.com/news/printedition/front/
Details: http://www.mapinc.org/media/248
Author: Eric Bailey, Times Staff Writer
Bookmark: http://www.mapinc.org/find?115 (Marijuana - California)

FEDS INDICT MEDICAL POT DISPENSARY OPERATORS

The U.S. Drug Enforcement Administration announced a set of 
indictments Tuesday alleging that operators of nearly a dozen medical 
marijuana dispensaries -- including two in West Hollywood -- 
profiteered from the illegal distribution of pot.

Among those accused are the operators of Compassionate Caregivers, a 
chain-store medical marijuana operation that did more than $95 
million in business.

"These dispensary operators are no different than any other drug 
trafficker: They prey on people in our communities to make a profit," 
said Timothy J. Landrum, special agent in charge of the DEA in Los Angeles.

Authorities say the owners of Compassionate Caregivers, Larry R. 
Kristich and James Carberry, ran dispensaries in Oakland, San 
Francisco, San Leandro, Ukiah, Bakersfield, San Diego and West Hollywood.

The indictment alleges that profits from marijuana sales were used to 
purchase expensive automobiles and real estate in Costa Rica. At a 
West Hollywood shop known as Yellow House, operators accepted credit 
cards and did more than $1.7 million in business in a single month, 
the indictment contends.

Others indicted included the operators of dispensaries in Corona and 
Morro Bay, where patients were charged two to three times the street 
value of marijuana, according to San Luis Obispo County Undersheriff 
Steve Bolts.

He called it "a super-sized retail drug-dealing center working under 
the cloak and smoke of Prop. 215," the 1996 ballot measure that 
legalized medical cannabis in California.

Also indicted in Morro Bay was Dr. Armand T. Tollette Jr. He is 
accused of writing marijuana recommendations for minors, failing to 
conduct physical examinations and paying "finder's fees" in marijuana 
for client referrals. Under federal law, conspiracy to distribute 
marijuana carries a sentence of up to 40 years in prison. 
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