FEDS CALL BUSTED POT CLUBS FRONTS

Arrests In San Francisco Tied To Alleged Drug-Trafficking Operation

SAN FRANCISCO -- Three medical marijuana dispensaries and 23 other
sites raided by federal agents Wednesday were part of a big
trafficking operation that used sick people as a front for street
sales -- illegal under both federal and state law, federal officials
said Thursday.

U.S. Attorney for Northern California Kevin Ryan said the raids were
unrelated to the U.S. Supreme Court's recent decision authorizing
federal agents to enforce the federal ban on marijuana even in states
with medical marijuana laws. Rather, he said, the investigation --
dubbed "Operation Urban Harvest" -- has been under way for about two years.

A Drug Enforcement Administration agent's search-warrant affidavit
says an undercover agent in May bought 1,000 tablets of Ecstasy -- an
illegal stimulant -- from one of the men arrested Wednesday.

The affidavit also says the man, Enrique Chan, 26, of San Francisco,
described to the undercover agent how he and his cohorts used medical
marijuana dispensaries as a front for illegal marijuana sales.

"Chan told the agent that he uses cannabis clubs as 'a backbone,'"
the affidavit says. "So if it comes down to a battle in court, what
are you going to do? You're going to bring in patients in court, like
really sick patients with cancer, have them sit on the stand for you.

And no jury is gonna try -- is gonna convict you."

Federal agents Wednesday raided the Sunset Medicinal Resource Center
on Judah Street, the Herbal Relief Center, a third club on Ocean
Avenue and 23 other businesses and homes -- mostly in San Francisco,
with a few on the Peninsula and in the South Bay. They carted away
more than 9,000 marijuana plants, which Ryan said could be worth more
than $5 million.

Officials at Thursday's news conference said 50 Ecstasy tablets were
seized at one of the dispensaries; other items seized from various
sites included eight vehicles, three firearms, an unknown amount of
cash, computers, records and cultivation equipment such as grow lights.

Ryan said Wednesday's raids bring to 47 the total number of search
warrants executed throughout the Bay Area during this two-year probe,
including 27 indoor growing sites. About 8,500 plants had been seized
before Wednesday.

One affidavit released Thursday cites the San Francisco police's Nov.
6, 2003, search of two Oakland warehouses containing
marijuana-growing operations. The DEA joined that investigation, and
an Oakland police informant a few days later linked those sites to
Vince Ming Wan, 33, of San Francisco.

An indictment handed up by a federal grand jury June 16 and unsealed
Thursday charges 19 people with conspiracy to grow and traffic more
than 1,000 marijuana plants; three people, including Chan, with
conspiracy to possess and distribute Ecstasy; and two people with
money laundering.

The money-laundering count deals with using marijuana-trafficking
proceeds, channeled through bank accounts, to pay rent on property
where plants were being grown. But Ryan said there's evidence that at
least some of the people in this case also were involved in an
international bulk cash smuggling operation.

Wan, whom the affidavits identify as the leader or among the leaders
of the organization, is charged in a separate criminal complaint with
conspiracy to grow and traffic marijuana.

Federal agents arrested 13 people Wednesday; Wan and seven others are
still being sought.

Ryan refused Thursday to say whether he believes medicinal use often
is used as a cover for illegal trafficking, or if this case is an exception.

Javier Pena, special agent in charge of the DEA's San Francisco
office, also balked at relating this investigation to the broader
issue of medical marijuana: "We're here to talk about this case
today, not hypotheticals."

But when a reporter asked about medical marijuana patients' and
providers' concerns, Pena replied, "Good, I'm glad they're
concerned." He said while some may believe it's OK to disregard the
Supreme Court's and Congress' decisions, "The DEA will not be among them."

Dozens of medical marijuana advocates rallied on San Francisco City
Hall's steps Thursday, protesting local law enforcement's cooperation
with the investigation. Officials said no San Francisco police were
present at Wednesday's raids, but Americans For Safe Access legal
campaign director Kris Hermes said he recognized at least one SFPD
officer at one of the raided dispensaries.

Hermes said the sites raided and evidence seized makes him believe
the DEA's true objective was to subvert medical marijuana.

Bruce Mirken, the Marijuana Policy Project's communications director,
took a more cautious tone. While he's "uneasy and distressed" to see
California police working hand in hand with the DEA, he understands
the concern about "shady people" using the state's medical marijuana
law as cover for illegal trafficking.

"We don't want to see patients exploited. ... We don't want to see
Proposition 215, the laws of this state and this city, broken," he said.

But the biggest obstacle to effective local regulation of medical
marijuana clubs is the federal government's continued threat of
prosecution, Mirken said. "The record-keeping that many want to see
as part of a regulation program becomes nearly impossible if the DEA
can use those records to prosecute providers and patients."

San Francisco has roughly 35 dispensaries; city officials have
enacted a moratorium on any new ones until the city works out a
regulatory structure. City Attorney Dennis Herrera issued a statement
Thursday noting that one of the three dispensaries targeted by
Wednesday's federal raids had opened since the moratorium was
enacted, and so was in violation of city ordinance.