SEARCHES TARGET ALLEGED TRAFFICKING

A total of 26 criminal search warrants were executed Monday at medical
marijuana operations across Montana -- including raids in Columbia
Falls, Whitefish, Kalispell and Olney -- along with warrants aimed at
seizing up to $4 million from lending institutions.

No charges have been filed, but owners of the businesses raided on
Monday say marijuana plants, computers and cell phones were seized,
and in some instances, bank accounts were frozen.

Michael Cotter, U.S. District Attorney for Montana, announced the
raids in a Tuesday press 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. When criminal networks violate
federal laws those involved will be prosecuted," Cotter said, adding
that "individuals with illnesses who are in clear and unambiguous
compliance with state law are not the focus of this
investigation."

Montana has a medical marijuana law that allows qualified patients and
caregivers to grow and/or possess a restricted number of marijuana
plants, according to a state website outlining the program.

The law, however, has been widely regarded as being poorly defined,
leading to a current total of 28,739 medical marijuana patients and
4,833 caregivers.

The Montana Legislature has been wrestling with bills that would
either repeal or tighten the state medical marijuana law, with some
critics at legislative hearings saying the law is being exploited for
trafficking marijuana across state lines.

According to Cotter, the raids culminate an 18-month multi-agency
investigation into drug trafficking activities across the state.

Marijuana businesses were searched in Belgrade, Big Sky, Billings,
Bozeman, Columbia Falls, Great Falls, Helena, Kalispell, Miles City,
Missoula, Olney and Whitefish.

Civil seizure warrants were executed for financial institutions in
Bozeman, Helena and Kalispell seeking up to $4 million, the release
states.

Specifically, the warrants allege that the operations were involved in
several violations of federal law: manufacture of marijuana with
intent to distribute; distribution of marijuana; conspiracy to
manufacture and distribute marijuana; and structuring transactions to
evade currency reporting requirements.

Items seized during the raids are not outlined in the press release
but may be disclosed once search warrant returns are filed with the
U.S. District Court.

The Associated Press reported that about 15 workers were inside the
Montana Cannabis facility on the west side of Helena when federal
agents burst in with guns drawn.

The workers were handcuffed and detained as the search was carried
out, and agents proceeded to seize the company's computers, data
storage, products and plants.

Montana Cannabis co-owner Christopher Williams told The Associated
Press that raids were taking place at his business' four locations.

Williams said of the 1,680 plants inside the greenhouse near Helena,
480 were flowering plants that produce about 5 ounces of marijuana
each. He said he sells an ounce for $190 -- meaning approximately
$456,000 worth of marijuana was confiscated from that one location.

Agencies participating in the raids included the FBI, the Drug
Enforcement Administration, Homeland Security Investigations, the IRS,
the Bureau of Tobacco, Firearms and Explosives, the Environmental
Protection Agency's Criminal Investigation Division, U.S. Customs and
the Occupational Safety and Health Administration.

Local law-enforcement agencies, including the Flathead County
Sheriff's Office and Kalispell Police, assisted in the searches.

The Senate Judiciary Committee on Monday voted 6-6 on a bill that
would repeal Montana's medical marijuana law, effectively stalling
it.

However, Rep. Mark Blasdel, R-Kalispell, said he expects a "blast
motion" in the next couple of days that would, with 26 votes, forward
the bill to the Senate floor for debate.

Blasdel said there are other bills still in the House that would
significantly tighten the existing law, and those bills could advance
regardless of what happens to the repeal.

"Something is going to get passed," he said. "It's just whether it's
an outright repeal or very sweeping changes."