HAYWARD POT BUST FUNDS POLICE DEPARTMENTS' GEAR

Local law enforcement agencies got a holiday bonus Thursday when more
than $1.2 million of assets seized in a 2006 marijuana bust in Hayward
were distributed among five organizations to finance new technology
and equipment.

The funds were handed out through the federal government's
asset-forfeiture program, which seizes assets used in or bought with
the profits of crime and redistributes the money to law enforcement
agencies that helped bring down the criminals.

A federal investigation including five Bay Area law enforcement
agencies found that Local Patients Cooperative, a medical marijuana
dispensary in Hayward, was actually operating as a "sophisticated
indoor grow" with hundreds of pounds of marijuana on hand even though
their license only allowed three pounds of marijuana in the dispensary
at one time, said Scott O'Briant, an agent with the Internal Revenue
Service's criminal investigation unit.

Hayward, Livermore, Vallejo and South San Francisco police departments
played a role in the investigation, as did the Southern Alameda County
Narcotics Enforcement Team, which at the time included officers from
Union City, Fremont and Newark. Drug Enforcement Administration and
IRS agents were also involved.

Investigators seized more than $1.8 million from bank accounts and
residences associated with the dispensary's owner and manager, Shon
Squier and Valerie Herschel, both of Hayward. Squier and Herschel were
both arrested and pleaded guilty to maintaining a drug-involved
premise. Squier also pleaded guilty to one count of money laundering.

"This is one of the best parts of our job, when we can share the
ill-gotten gains that are taken away from criminals with our law
enforcement partners and local communities," O'Briant said.

Hayward police and the county drug unit each received $474,363 and
Livermore, Vallejo and South San Francisco police departments each
received $94,872. The fund distribution is based on the different
groups' participation in the investigation. The IRS and DEA also take
a portion of the funds.

Hayward Police Chief Diane Urban called the funds "a true holiday
gift" at a time when police departments are facing budget cuts.
Hayward police will probably use the money to purchase and update
their technology, including electronic strength devices and body
cameras, Urban said.

The asset-distribution program kicks in every time federal agencies
seize funds and assets associated with a crime, though the funds to be
distributed are rarely this large, asset-forfeiture coordinator Juan
Saavedra said.