Eastern District of California Blog

Feds Seek To Forfeit 100 Homes For Pot Growing

In the largest operation of its kind, federal agents swept across the Sacramento region Tuesday and Wednesday targeting about 75 homes serving as suspected marijuana growing sites that authorities say are operated by a Chinese organized crime syndicate.

The raids, which involved more than 500 federal, state and local agents, hit homes from Elk Grove to Sacramento to rural areas and are aimed at forcing the forfeiture of about 100 homes to the federal government, an effort valued at hundreds of millions of dollars in real estate and marijuana.

“This represents one of the largest residential forfeiture efforts in the nation’s history,” the U.S. Justice Department said.

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In an unusual twist, no arrests have yet been made as the investigation continues and focuses on the manner in which the homes were purchased and the identity of suspects federal authorities believe handled the transactions.

McGregor Scott, the U.S. attorney for the Sacramento-based Eastern District of California, emphasized that the raids, which used flash-bang grenades to gain access to some homes, are not aimed at restricting California's new state law allowing recreational marijuana use.

“It absolutely has nothing to do with that,” Scott said. “This is illegal under anybody’s law.”

Sac Bee, 4/4/18

Read more here: http://www.sacbee.com/news/local/crime/article207911324.html#storylink=cpy

 

More Details On IRS Probe of $18.6 Million Alleged Fraud From Thunder Valley Casino

As federal prosecutors try to recover $18.6 million allegedly pilfered from the pockets of Thunder Valley Casino owners, the tangled web includes payments of more than $800,000 to the head of the Sacramento County Deputy Sheriffs' Association, a court affidavit alleges.

The payments to a company owned by DSA President Kevin Mickelson and to him personally were for the remodel and upgrade of a $1.1 million El Dorado Hills home purchased by developer Bart Volen, one of three men who are the focus of an Internal Revenue Service probe into a purported overbilling and laundering of the take.

Sacramento Bee, 3/23/12

Feds Allege Construction Fraud Cheated Thunder Valley Casino

An audacious fraud scheme that targeted the owners of the Thunder Valley Casino may have garnered three men more than $18.6 million, the federal government claims as it moves to seize dozens of properties from the trio.

Court documents filed late Tuesday in federal court in Sacramento describe a two-year overbilling and money-laundering spree by the men who oversaw construction of the headquarters complex for the United Auburn Indian Community.

No criminal charges have been filed, and lawyers for two of the men say the government is mistaking compensation of the casino world for evidence of wrongdoing.

"It really reads like a novel," said Sacramento attorney Tom Johnson, who represents tribal administrator Greg Baker. "It's not a criminal indictment by a long stretch and if they had enough to criminally indict, they would have done it."

Sacramento Bee, 3/22/12

Feds Seek Forfeiture of Sacramento Medical Marijuana Dispensary Building

U.S. authorities filed suit Thursday seeking to seize the building of a Sacramento dispensary, charging the marijuana store violated federal laws against drug transactions near schools.

The forfeiture complaint filed over the Sacramento Holistic Healing Center – a Southside Park dispensary also known as "Grass on 10th" – marks the first formal federal seizure action against a medical marijuana outlet in the city.

In court papers filed in Sacramento, U.S. Attorney Benjamin Wagner suggested the business was being targeted because it was dispensing marijuana within 1,000 feet of the MET Sacramento charter high school and William Land Elementary School.

Sacramento Bee, 1/13/12

Prominent Sports Agent Fights EDCA Forfeiture Action

A San Antonio sports agent is embroiled in a court battle with federal authorities who want to take away property he bought in California because they say they saw marijuana on it.

No drugs have been seized on the land in northeastern California, andLaPoe Smith told federal agents he bought the land — sight unseen — for an associate who did not have the money.

The California battle, and an investigation, have reached into San Antonio because the federal government contends that Smith sent, or had someone send, numerous money orders, bank and cashier's checks to buy the five parcels of property, which cost a total of more than $161,000.

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“Nobody ever went to that property and seized any drugs,” said Smith's lawyer, David M. Michael of San Francisco. “What they claim they did is a flyover and claimed they saw marijuana. So its pure rank speculation, first of all. Two, they're not specifically alleging ... he had any involvement or knowledge of illegal activity.”

In its case against Smith, the U.S. attorney in Sacramento is using a civil court tool aimed at taking, by forfeiture, land, homes or buildings suspected of being used for illegal activity.

The feds' actions seem overreaching to advocates of property owners, like the Washington, D.C.-based Institute for Justice.   The group is not involved in Smith's case but has been fighting the government across the country in similar forfeiture cases. In Massachusetts, for example, the libertarian group is helping the owners of a motel fight off the feds' attempt to seize the property, where guests have been found guilty of drug offenses. The owners are not accused of any wrongdoing.

“Unlike criminal law, where you're innocent until proven guilty, the government targets property for forfeiture and you must prove you're innocent,” said Larry Salzman an attorney with the Institute for Justice. “We think it's wrong because it turns the idea of innocent until proven guilty on its head.”

San Antonio Express-News, 11/26/11/

U.S. Attorney Files Marijuana-Based Forfeiture Actions

Sacramento-based U.S. Attorney Benjamin Wagner filed civil forfeiture complaints to seize land and bank accounts connected with commercial marijuana cultivation operations.

“The commercial cultivation of marijuana is a violation of federal law, and commercial marijuana cultivators who attempt to mask their activity through structuring their financial transactions in violation of anti-money laundering laws can expect to have their property seized and forfeited,” Wagner said in a statement.

The growing fields were in five parcels in rural Trinity County and a 40-acre tract in Butte County.

The U.S. Attorney’s office also is pursuing money in bank accounts in at least three different banks.

Sacramento Business Journal, 11/15/11