Upright Pharmacy TLC wrongfully raided by Jungle Boys
The current trend towards small-scale crackdowns has the industry on high alert as authorities play both cops and robbers at the expense of compliant cannabis companies.
TLC Collective is a highly respected dispensary run by industry veterans, the Jungle Boys, for over 16 years. The store reportedly paid $18 million in California taxes last year. But that wasn’t enough to stop the California Department of Taxes and Fees Administration (CDTFA) from treating the store like a criminal operation during a March 1 raid.
According to the shop’s Instagram page, California tax authorities showed up at the Boyle Heights pharmacy with about 20 undercover vehicles from the LAPD, the LA County Sheriff’s Department, and the California Highway Patrol. The owners watched as officers entered security footage, convinced they had made a huge mistake and missed a multimillion-dollar payment. It turns out the raid happened over a $66,000 discrepancy that was quite controversial.
“So we give these agencies all our money overtaxed and overregulated, and that’s what we get when we dispute a late fee.”
TLC collective owners via Instagram
What caused this massive raid and cash seizure?
The problem started in the early pandemic days of 2020 when the CDTFA would not accept cash payments. This created an obvious hurdle for cannabis companies, which, thanks to the ongoing federal ban on marijuana, must trade almost exclusively in cash. At the time of the raid, TLC by Jungle Boys was legally challenging the fine through their respective channels. But none of that mattered to the California tax authorities.
https://www.youtube.com/watch?v=fD7smv3G-Nr
Officers involved in the raid reportedly seized more than $174,000 in cash, including budtender tips, before jokingly asking arrested people “how much they could make” growing weed.
To clear their name, TLC’s owners posted screenshots of messages exchanged with CDTFA officials and insisted they had done nothing to justify the raid.
“Our office does not know the reason for the raid on your client, but I will see if I can get any information,” read a screenshot message from the CDTFA. Another message posted read: “Regarding your appeal, notes in our system show that a settlement review is currently pending.”
The TLC by Jungle Boys team’s justified frustration boiled over on Instagram. “I went through every emotion and when I realized I’m paying all these people to do this shit to us,” the @JungleBoys account wrote.
“I just can’t deal with it. We are a law-abiding company and that is how we are treated?”
@JungleBoys on Instagram
The growing trend of unjust raids and seizures
In January, a federal judge blocked requests to prevent law enforcement from targeting armored cars carrying cash for pharmacies.
The case began when Empyreal Logistics pickup trucks were stopped in traffic by sheriff’s deputies, resulting in more than $1 million in cash being confiscated and forfeited to the FBI. The FBI claims the money came from money laundering and illegal sales, but produced no evidence or charges to pursue their seizure.
The judge recognized Empyreal’s side of the case but blamed the logistics company’s lawyers for the lost case. “Empyreal may very well have an excellent case on the matter,” the judge said. “The court respects Empyreal’s zeal and does not question its sincerity — but Empyreal’s attorney is doing his client a disservice by curtailing procedural errors and ignoring the court’s instructions,” Judge John W. Holcomb ruled.
The precedent set by the Empyreal case could allow authorities to declare open season to insurgent cannabis operators nationwide. Many law enforcement agencies have already been accused of abusing the gray area between state laws and federal prohibitions – the TLC raid is just the most visible example.
All those involved in the legal cannabis industry must oppose these federal encroachments immediately. Following their episode with the state, the operators of TLC by Jungle Boys wrote on Instagram, “California’s cannabis tax system is broken and we will all be out of work while all these agencies get bigger every day.”
By submitting this form, you are subscribing to Leafly news and promotional emails and agreeing to Leafly’s Terms of Service and Privacy Policy. You can unsubscribe from Leafly email communications at any time.
Post a comment: