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DrugScreening.org


 

DEA Targets High-Living Pot-Club Operators
March 15, 2007

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News Summary

A Porsche-driving California man was one of several medical-marijuana clinic operators targeted by the U.S. Drug Enforcement Administration (DEA) and charged with drug trafficking, the Associated Press reported March 11.

California's medical-marijuana law says that clinic operators are only supposed to draw "reasonable compensation," and most programs claim to be nonprofit organizations. But Sparky Rose, who ran San Francisco's New Remedies Cooperative, had $125,000 in cash and was driving a Porsche Carrera convertible when DEA agents arrested him in October.

Rose allegedly was paying himself $9,600 per week out of clinic proceeds, and had deposited $2.3 million in the club's bank account during an eight-month period beginning in December 2005. Another clinic operator, Luke Scarmazzo, produced a rap video showing him counting $100 bills and apparently smoking pot; a 2007 Mercedes and two loaded handguns were seized at the time of his arrest.

Oversight of the California law has been lax, but the DEA -- which does not recognize the legality of medical marijuana -- has been going after individuals suspected of flouting the reasonable-compensation provision. A recent DEA-led raid on 11 Los Angeles-area clinics was part of the crackdown, with officials saying the programs were bringing in an average of $20,000 in profits daily.

John Vasconcellos, the former state senator who authored the medical-marijuana law, said he doesn't see anything wrong with clinic owners making a big profit as long as they are helping patients. "We're helping people who are sick and [DEA agents] have this fascist mentality against good health and pleasure," he said.

But DEA Special Agent in Charge Javier F. Pelna said that anyone who uses money from marijuana clinics to "buy fancy cars, boost their bank accounts, and exploit vulnerable citizens is not compassionate. They're criminal."

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