Federal prosecutors rattle California's medical marijuana industry

[n2doc]

By Peter Hecht
[e-mail]
Published: Friday, Oct. 14, 2011 - 12:00 am |

Venture capitalist Steve Berg figured he had an unassailable business model.

Berg's San Francisco firm, the ArcView Group, was pledging to find "angel investors" for startups offering products and services for California's $1.5 billion medical marijuana industry.

But last week, U.S. prosecutors in California announced criminal prosecutions against targeted marijuana dispensaries and threatened landlords with property seizures.

Suddenly, the state's burgeoning medical marijuana sector is dealing with fear and introspection. Industry advocates are calling for increased state regulation, thinking that could weed out bad actors in the trade – and ward off the feds.

The government's action has left politicians, medical marijuana businesses and would-be investors weighing the risks of operating in the industry.



Read more: http://www.sacbee.com/2011/10/14/3979692/federal-prosecutors-rattle-californias.html

[abelenkpe]

1. The country and state is in desperate need of increased revenue and jobs

But hey let's destroy these particular ones.

[xchrom]

4. +1

[Upton]

2. I was listening to KGO early this morning..

and Peter B Collins said he believes this is a political move by the Obama administration. Making the point, that even with this crackdown, California is considered safe electorally, so the administration figures they can fuck with them...and by doing so, maybe gain a few votes in other more conservative states for being tough on drugs..

I don't know if I agree completely with that assessment, I think there's more to it than that, but even if partially true..what does it say about Obama that he would so willingly use MM patients as political pawns?

[frylock]

3. what does it say? that he's a fucking asshole.

[Upton]

5. You won't get any argument from me..

[robdogbucky]

6. Not so much....

Friday, October 7

Early this afternoon, four US Attorneys held a joint press conference in Sacramento, in which they threatened numerous enforcement actions against medical cannabis providers.

The first and most important thing I would like our patients to know is that Harborside has no intention of closing. Five years ago, the Harborside collective made a commitment to provide the best possible care for medical cannabis patients, and we fully intend to honor that commitment. Unless and until the federal government locks our doors, we will be here to serve you. And then we will pick the locks…

However, it is highly unlikely that Harborside will be a target of federal enforcement. It also appears that individual patients and care givers will not be targeted for enforcement actions.

You may have heard earlier this week that the IRS denied all of Harborside’s standard business deductions (for things like laboratory testing, security, rent, payroll, etc.), on the grounds that we supposedly are a drug trafficking organization. We are of course appealing this inaccurate and unfair ruling, and are confident that it will ultimately be overturned. The legal process in this case is just beginning, and it will probably be several years before it is concluded. In the meantime, Harborside will continue to care for our patients.

I and the Harborside staff thank you for the many expressions of support we have received and for your continued patronage at this critical time. We look forward to serving you for many years to come.

Regards,

Steve DeAngelo
Executive Director


Take the tour of Harborside:

http://www.harborsidehealthcenter.com/