FEDS: POT CRACKDOWN FOCUSED ON 'CRIMINAL ENTERPRISES'

The United States Justice Department said Tuesday it executed 26
search warrants involving Montana's largely unregulated medical
marijuana industry in 13 cities Monday.

The government also issued civil seizure warrants at banks in Bozeman,
Helena and Kalispell, freezing up to $4 million in assets of Montana
medical-marijuana growers.

The raids came as part of an 18-month investigation by multiple
agencies "into the drug trafficking activities of criminal enterprises
operating throughout the state of Montana," U.S. Attorney for Montana
Michael W. Cotter said in a news release.

"Twenty-six search warrants were carried out yesterday where there is
probable cause that the premises were involved in illegal and
large-scale trafficking of marijuana," Cotter said. "When criminal
networks violate federal laws those involved will be
prosecuted."

The information was released Tuesday afternoon following raids on
medical marijuana dispensaries and grow operations throughout Montana,
including one at Four Corners and one near Belgrade. Agents from the
Drug Enforcement Administration and a host of other federal, state and
local agencies participated in the raids.

"Search warrants and civil seizure warrants were issued based on
judicial findings that probable cause exists to believe that the
premises ... are involved in criminal enterprises..." according to the
statement.

Agents seized marijuana plants and related items in what appears to be
a large-scale crackdown on the major players in the state's
medical-marijuana industry. They also seized computers, books, papers
and other records from the premises in question, as well as funds in
company and personal bank accounts owned by the caregivers. In some
cases, vehicles and other assets were seized.

In Gallatin County, raids took place at around 11 a.m. Monday at
Montana Cannabis Ministries on Dollar Drive east of Belgrade; at Big
Sky Patient Care on Gallatin Road near Four Corners; and at an
undisclosed location at Big Sky.

The move came after a 2009 announcement by the Obama Justice
Department that the federal government will not seek to prosecute
medical marijuana operators who are operating legally under the
state's 2004 medical-marijuana law. Marijuana remains illegal under
federal law.

Cotter said the "criminal enterprises" raided Monday were in violation
of the federal Controlled Substances Act. He also indicated that the
subjects of the raids are suspected of violating federal monetary laws
by "...[S]tructuring or assisting in structuring any transaction to
evade currency reporting requirements or causing or attempting to
cause a domestic financial institution to fail to file Currency
Transaction Reports..."

The statement made clear that medical marijuana patients who are
obeying state law "are not the focus of this investigation."

Also not under federal scrutiny, it appears, are some 4,800 other
state-licensed caregivers whose facilities were not raided Monday.
According to the Montana Department of Public Health and Human
Services, which maintains the medical-marijuana registry, there were
4,833 registered caregivers in the state in February and 28,739
registered patients.

It remains unclear if the Justice Department intends to take action
against those caregivers -- many who operate commercial marijuana grow
operations or shops -- or just those raided Monday. However, the news
release said that because of the "danger" marijuana poses, "the
Department of Justice continues to focus its enforcement and
investigative efforts in targeting large-scale drug organizations that
cultivate, manufacture, distribute, or sell marijuana."

Nobody was arrested Monday, and the Justice Department has not sought
indictments or filed charges against anyone involved in the raids,
according to the statement.

"All named individuals and locations identified in the search
warrants, civil seizure warrants and related documents are presumed
innocent until proven guilty," the statement said.