Pubdate: Tue, 06 May 2014
Source: Denver Post (CO)
Copyright: 2014 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: John Ingold
Page: 4A

ATTORNEY SAYS SUSPECTS OBEYED STATE LAW, FEDS LACK TOLERANCE

The federal indictments against four men involved in the Colorado 
marijuana industry are "a shot across the bow" of all cannabis 
businesses that raise questions about the federal government's 
tolerance for the industry, an attorney for one of the men said in 
court Monday.

Sean McAllister, the attorney for suspect Gerardo Uribe, said Uribe 
believed he was operating the VIP Cannabis dispensary and his other 
marijuana businesses lawfully under state law.

Uribe and three other men are accused of transferring money from 
Colombia to invest in a marijuana-cultivation warehouse and also of 
attempting to deposit proceeds from VIP Cannabis into a bank account. 
Uribe pleaded not guilty to the charges Monday, as his co-defendants 
have previously.

McAllister said it is not against state law to seek investment from 
outside of Colorado - the only requirement is that people with 
ownership interests be Colorado residents. And, he said, it is common 
for marijuana business owners to look for banks that will take their 
deposits-even though federal lawmakes banks reluctant to do so.

"If that's the crime, then they're all on the hook," McAllister said, 
referring to the state's hundreds of marijuana businesses. "This is a 
shot across the bow of the entire industry."

Prosecutors contended that Uribe engaged in a pattern of deception 
and partnered with people who are ineligible to work in the Colorado 
marijuana industry to hide their involvement and conceal sources of money.

"The defendant absolutely knew he was not in clear and unambiguous 
compliance with the state," prosecutor Brad Giles said.

During Monday's hearing, Giles presented tax and immigration records 
that he said showed Uribe-who is from Colombia but living legally in 
the United States - has previously been dishonest in his dealings 
with the government.

But federal Magistrate Judge Craig Shaffer questioned the conclusions 
Giles drew from the records.

At the end of the hearing, Shaffer allowed Uribe to be released - 
over prosecutors' objections - on a $50,000 bond that includes a 
requirement for electronic monitoring.

All marijuana businesses are illegal under federal law, but the 
Justice Department has announced it will not make it a priority to 
prosecute those who are complying with state law and are not involved 
in other criminal activity. Though sources have previously said the 
raids that led to Uribe's indictment were looking for ties to 
Colombian drug cartels, the charges don't allege cartel connections 
or out-of-state-marijuana sales.

State regulators have since ordered Uribe's businesses closed, and 
McAllister said Uribe is working to either shutter or sell all his businesses.
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