COURT CASES INDICATE BLACK-MARKET MARIJUANA SUPPLIED TO MISSOULA
MEDICAL DISPENSARIES

The exploding number of Montana's medical marijuana dispensaries has
become the subject of heated debate, with two recent federal court
cases in Missoula revealing additional problems with the
dispensaries' legitimacy.

Although legally designated "caregivers" are supposed to grow their
own marijuana for qualified patients, authorities say that, in order
to meet demand, some providers are purchasing black-market pot from
out of state and fueling the drug trade.

"All I can really tell you is that it's happening, every single day -
marijuana is being brought to Montana from out of state to supply
caregivers and their dispensaries," said Andrew Paul, a deputy
Missoula County attorney who specializes in drug offenses.

Paul could not discuss the details of any ongoing investigations, but
said intelligence reports by agents at Montana's High Intensity Drug
Trafficking Areas task force indicate there are multiple dispensaries
in Missoula acquiring marijuana from out of state.

The business of medical marijuana has ballooned since last October,
when the federal government said it would defer to state law
regarding the use, possession, cultivation and transport of the drug.

The announcement opened the floodgates for registered caregivers to
treat patients on a large scale with minimal concern for police
interference, and some local enterprises have since reported a 20
percent to 30 percent monthly increase. The influx of storefront
dispensaries has also made it easier for Montanans to qualify for a
medical marijuana card, with some caregivers sponsoring clinics where
out-of-state doctors sign off after a brief examination.

According to authorities, the trend is creating a broader market for
drug dealers - because designated growers can't keep up with demand,
illegal marijuana is being diverted into the hands of caregivers.

"I am certain that many local dispensaries do not grow enough medical
marijuana to support their sales, so it seems that drug dealers have
prospered from the sale of this 'medicine,' " Paul said.

Paul said none of the dispensaries that investigators have identified
as having received marijuana illegally have been shut down in
Missoula County.

"It's a difficult case to prove since they are allowed to 'acquire'
and 'possess' a certain amount of marijuana," Paul said.

However, federal charges were filed against Richard Biggs, 31, who
was arrested last month while returning from a four-day trip to
Humboldt County, Calif., sometimes called the Emerald Triangle
because of its reputation as a center for marijuana cultivation and
distribution.

Officers who searched the Missoula man's Chevy Avalanche found
vacuum-sealed plastic bags containing about 74 pounds of marijuana
and $39,500 in hundred-dollar bills.

"The investigation has revealed evidence that the various strains of
marijuana match up with the strains of marijuana available from
several local medical marijuana dispensaries in the Missoula area,"
according to charging records filed in Missoula District Court,
where the case was initially charged. "It is believed that several
local dispensaries have been supplied with marijuana by Biggs through
his black market deals originating in Northern California."

Authorities later recovered nine additional pounds of marijuana from
Biggs' home in the South Hills, and learned he owns a second home in
Las Vegas. Biggs hasn't reported any income since 2007, when he was
discharged from federal probation for a separate drug conviction, but
the investigation showed that he has flown between Missoula and Las
Vegas on a monthly basis since July 2008.

In another case, Andrew Burrington recently pleaded guilty in U.S.
District Court in Missoula. Prosecutors charge that Burrington
brought large amounts of marijuana from out of state and provided
pound quantities of the drug to at least one local dispensary.

It's hardly a surprise to local law enforcement that Montana's
medical marijuana industry is being debased by illegal activities.

According to Ron Alsbury, chief of Montana's Probation and Parole
Bureau, 9.08 percent of Montanans on probation or parole are carrying
medical marijuana "green" cards. That percentage is based on 787
cards among 8,660 offenders on parole, probation and conditional
release as of May 21.

In probation and parole's Region 1, which encompasses Missoula,
Ravalli and Mineral counties, there are 213 offenders with medical
marijuana cards.

"Almost every single one of my probationers has a green card," Paul
said.

To address the many concerns that have emerged since last October, an
interim legislative committee is currently working with advocates,
medical marijuana businesses, law enforcement and opponents to devise
a joint plan for fixing the medical marijuana law, which passed in
2004 with a ballot initiative. When lawmakers convene in January,
they hope to have a range of options to explore.

Not that some marijuana providers aren't striving to build
respectable businesses and provide assistance to legitimate patients
who rely on the drug, either to ease pain, increase appetite or
improve sleep.

But Paul suspects that many of the enterprising individuals who have
opened medical marijuana businesses were involved in the illegal drug
trade prior to enactment of Montana's Medical Marijuana Act.

"Some of these people had connections with drug dealers before the
act passed, and now they're using those relationships to support a
business," he said.