THREE MEN GET 1-YEAR SENTENCES FOR MEDICAL MARIJUANA OPERATIONS

Three men who openly operated medical marijuana businesses in Helena
and Great Falls were sentenced in federal court Thursday to a year in prison.

In an emotionally charged hearing, Senior U.S. District Court Judge
Charles Lovell handed down the prison terms to Joshua Schultz, Jesse
Leland and Jason Burns. About 75 friends and family members who packed
into the federal courthouse in Helena were hoping the judge would take
the recommendation of probation made by the men's attorneys, but also
feared that the judge might impose a mandatory minimum sentence of
five years or even the maximum of 40 years.

Yet judges are allowed discretion when it comes to sentencing, even
with mandatory minimums. Since the men had admitted their guilt,
cooperated with the U.S. Attorney's Office, had minimal if any
criminal records and believed they were in compliance with state laws
governing medical marijuana, court officials recommended a guideline
sentencing range of 24 to 30 months.

But Lovell lowered the sentences even further, noting that this was a
highly unusual case, pitting state against federal laws regarding marijuana.

"The sentencing range that established the guidelines has been, in the
judgment of the court, excessive for utilization in this particular
case under what I find to be very unusual circumstances," Lovell said.
"While it is true that the law was violated and while it is true that
the computation set forward by the U.S. Probation Office complies with
the guidelines in an ordinary case, this is not an ordinary case as to
each of the three defendants.

"... We need to avoid unwarranted sentence disparity among defendants
found guilty of similar misconduct and who have similar records."

Still, the 12-month sentences to a federal penitentiary shook the
courtroom, with mothers, wives and friends breaking into tears, sighs
of "no" ringing out and men dropping their heads into their hands.

Attorneys for the three men noted that this wasn't the typical drug
case involving clandestine manufacturing of drugs without regulations.
In 2004, 62 percent of Montana voters passed an initiative removing
criminal penalties under Montana state law related to the medicinal
use, possessing and cultivation of marijuana for qualifying patients
and registered caregivers.

Few people registered with the state as patients or caregivers until
2009, when the "Ogden Memo" was issued to federal prosecutors by then
U.S. Deputy Attorney General David Ogden. Generally, it said
prosecution of marijuana cases in states with medical marijuana laws
should be low on the priority list.

But many people who read the memo thought it said the federal
government wouldn't prosecute medical marijuana cases, and the number
of caregivers and patients skyrocketed in Montana. Leland, 28, and
Burns, 40, formed Queen City Caregivers LLC and registered the
business with the Secretary of State's office.

The men maintained records regarding the eligible patients for which
they could manufacture marijuana under the state law and even met with
local law enforcement officials, who counted 749 plants growing at
their nursery on Westhaven Road in Helena. The officials determined
that Burns and Leland were in compliance with state laws and didn't
issue any citations.

Meanwhile, Schultz, 38, opened Natural Medicine of Great Falls, which
operated like a broker, buying and selling marijuana among caregivers.

"As (Schultz's) character letters attest, he is a good family man and
a productive member of the community," defense attorney Michael
Donahoe wrote on behalf of his client in court documents. "Absent the
government's publication of the Ogden Memo, there is no evidence to
support the conclusion that (Schultz) would have engaged in the
business of selling marijuana.

"... And under the Ogden Memo it was more than reasonable for (Schultz)
to assume that he would not be targeted for federal prosecution, so
long as he was making a good faith effort to remain in compliance with
Montana's medical marijuana laws."

But in March, the federal government carried out dozens of raids in
Montana, including at the three men's businesses. They were arrested
and jailed on about 25 charges each including manufacturing and
distributing marijuana and money laundering.

In court Thursday, Assistant U.S. Attorney Joseph Thaggard reiterated
that the Ogden Memo only spoke about prioritization of crimes, and
federal prosecutors in Montana felt a need to corral the state's
exploding medical marijuana industry. He added that the memo also said
people wouldn't be prosecuted when there was "clear and unambiguous
compliance" with state law, and the three men didn't fall into that
category. For example, Leland had sold marijuana to an undercover
officer, and the state law doesn't allow for caregiver to caregiver
transactions.

"The memo didn't say sort of comply or try to comply or attempt to
comply ... and the use and distribution of medical marijuana is still
against federal law," Thaggard said. "So it's a little disingenuous
for these defendants to come forward saying they didn't believe they
would be fair game for prosecution."

The court received dozens of letters from supporters of all three men,
who noted that they were upstanding fathers, uncles and friends, as
well as caring individuals who were only trying to help people who
were ill. Thaggard noted that while that may be true, the men also
made quite a bit of money - around $1.3 million by the government's accounting.

Burns, who also owns a construction business in Helena, pleaded guilty
in September to growing marijuana and money laundering. Leland pleaded
guilty to manufacturing marijuana and Schultz pleaded guilty to
distribution of marijuana. In exchange for the guilty pleas, the other
charges were dropped Thursday and the defendants agreed not to appeal
the sentences.

Leland and Burns each forfeited $454,666 in a bank account that was
seized and Schultz paid the government $110,000 prior to the
sentencing. He also forfeited a 2001 Mercedes Benz.

All three men were set free Thursday, but will have to report to
federal prison as soon as they're ordered to begin their sentences.
After the release, Burns will be on supervised probation for three
years and Leland and Schultz will be supervised for four years.