FATHER, SON CANNABIS GROWERS INTEND TO PLEAD GUILTY TODAY

As Richard and Justin Flor prepare to enter guilty pleas Tuesday to
an unknown number of charges against them surrounding the family's
medical marijuana business, new court documents explained how the
case was investigated.

The Flor family was involved in one of the state's largest medical
marijuana operations.

In an "offer of proof" filed late last week by the U.S. Attorney's
office, it appears that Justin Flor will plead guilty to conspiracy
to manufacture, distribute and possess with intent to distribute
marijuana. The document doesn't mention any of the other 14 charges
filed against him, nor does it mention charges filed against his
father, Richard Flor or his plea agreement. However, Richard Flor's
attorney, Brad Arndorfer, has requested a change-of-plea hearing too.

The government writes that had the matter gone to trial, it would use
the testimony of two cooperating witnesses -- who aren't named in the
document -- as well as special Drug Enforcement Agency special agents
to prove the case against Justin Flor.

Both of the cooperating witnesses, identified in court documents as
"CW1" and "CW2," appear to be involved in the business end of the
medical marijuana enterprise.

The first cooperating witness was expected to testify that as far
back as 2006, Justin Flor and others grew marijuana outdoors at the
Flor family home, where Justin lived with his parents, Richard and
Sherry. The witness also claims that the marijuana was stored at the
Flor home and distributed to others, including the witness and customers.

That witness also told the government prosecutors that in early 2009,
the business partners decided to expand outside of the Miles City
home, and started growing marijuana in at least one location near
Three Forks, as well as in a series of large greenhouses in the old
State Nursery Building off of Highway 12 west of Helena.

The marijuana was then distributed to locations in Helena, Missoula,
Billings and Miles City.

The second cooperating witness was involved in managing the money
generated by the marijuana sales, according to court documents. The
witness was expected to testify that the Flors and their partners
deposited money from the sale of the marijuana into bank accounts and
used it to compensate themselves and their partners, as well as to
finance the continued production and distribution of marijuana.

The government also planned to put an Internal Revenue Service agent
on the witness stand to testify that more than $1 million was
deposited in various accounts.

In addition, two DEA agents, Dan Dunlap and Diane Jenkins, were
expected to report how they purchased about four ounces of marijuana
from one of the Flors at the residence on Oct. 27, 2007, while
another agent, Wesley Smith, said he observed more than 30 marijuana
plants growing in the yard of their Miles City home.

The government also said it could prove that agents confiscated about
950 marijuana plants from the Helena greenhouses, as well as a number
of firearms.

The Flor family -- Richard, 67, his wife Sherry, 55, and Justin, were
arrested in March 2011 after being indicted by a grand jury on 15
counts total including drug manufacturing, possessing and
distributing, plus money laundering and possessing a firearm during a
drug trafficking offense.

In November, Sherry Flor pleaded guilty to conspiracy and money
laundering charges, and the other counts were dropped.

A hearing was held earlier this month to decide whether Richard Flor
was competent to stand trial; he is in the early stages of dementia,
according to a psychologist. The psychologist said Flor would have
difficulties aiding his defense attorney but is well enough to
understand the nature of the offenses against him.

Senior U.S. District Court Judge Charles Lovell, who is presiding
over the case, didn't rule yet on the competency concerns.

Richard Flor allegedly was a partner in Montana Cannabis, one of the
state's largest medical marijuana operations. The company was one of
numerous medical marijuana businesses across Montana that was raided
last March by state and federal agents.

Many of the business owners said they believed they were operating
within the constraints of a state law allowing "caregivers" to grow
and provide medical marijuana to people with certain ailments.
However, the federal government argues that marijuana is still
considered a dangerous drug and they're focusing raids on medical
marijuana nurseries and distributors that also involve large amounts
of money changing hands and weapons being involved.

In court documents, the Flors had argued that their business complied
with state medical marijuana laws and that the federal prosecutors'
conduct was "outrageous" when they brought charges against a
legitimate business.

All three Flors have been released from custody but must check in
regularly with federal probation officers.

The change of plea hearing for both Richard and Justin Flor is
scheduled to begin at 10 a.m. today at the Paul Hatfield Federal
Courthouse in Helena.