A group of five medical marijuana dispensaries, including one in Covina, raided by authorities Wednesday were targeted because the operators were allegedly turning a profit from the establishments in violation of state medical marijuana laws.
Eleven people were arrested in connection with the operation, which took place Wednesday morning in Los Angeles, Orange, Riverside and San Diego counties.
The Alternative Medicine Collective of Covina, 20050 E. Arrow Highway, Suite B, was forced to close its doors after a multi-agency task force seized its products, along with four other dispensaries in the four-county operation, Los Angeles County sheriff’s officials said. No one at the Covina dispensary was arrested.
Under California’s Proposition 215, also known as the Compassionate Use Act of 1996, medical marijuana dispensaries are only allowed to operate as non-profits, Capt. Ralph Ornelas of the Sheriff’s Narcotics Bureau said.
“This organization was definitely working outside the law,” he said.
“Our investigation proved they were charging people and making a profit out of it,” Ornelas said. “You’re not supposed to make a profit.”
Authorities also searched an Alhambra home in the 1600 block of Curtis Avenue, though no evidence was seized, the captain said.
Erik Andresen, 35, of Seal Beach was arrested as the “primary suspect” in the case against the five dispensaries, Ornelas said.
He was booked on suspicion of cultivation of marijuana and another marijuana-related offense at the sheriff’s Norwalk Station, according to a jailer. He was released Thursday after posting $100,000 bail.
Andresen said he serves as an adviser for the organization of patients involved and denied any wrongdoing.
“We are a group of patients who are together, collectively, to provide medicine for sick people,” he said.
Andresen said the dispensaries did not make a profit.
“You’re allowed to be reimbursed for your time,” he said. He declined to say how much money he has received in compensation, but described it as “piddly.”
“I don’t own a home,” he said.
Andresen added that the collectives generally give excess marijuana free of charge to their sickest patients.
“We don’t turn a profit because be give away any extra proceeds,” he said.
The names of the other 10 people arrested on drug related charges were not available Thursday, Ornelas said.
In all, the multi-agency task force searched five marijuana dispensaries, one cultivation site, two processing sites, seven homes and a sailboat, sheriff’s officials said in a written statement.
Ornelas said they were located in Covina, Alhambra, Long Beach, Seal Beach, Huntington Beach, Fullerton, Los Angeles, San Diego, Riverside and Palm Springs, Ornelas said.
In addition to the Covina establishment, the medical marijuana dispensaries raided Wednesday included the Palm Springs Holistic Collective, the Riverside Compassionate Wellness Center, the San Diego Holistic Collective, and the Compassionate Medical Collective in San Diego, Ornelas said.
Andresen said that as far as he knows, only one dispensary in San Diego is affiliated with his patient group.
Officials seized 35 marijuana plants, valued at $70,000; 78 pounds of processed pot, valued at $234,000; seven gallons of concentrated cannabis oils, valued at $44,800; about 4,000 pre-packaged, marijuana-laced edible products; hydroponic growing equipment and chemicals; and about $20,000 in cash, according to the sheriff’s statement.
The edible products included, “Lolly pops, ice pops, candy bars, brownies — all that stuff,” Ornelas said.
He said sheriff’s narcotics officials are looking into requesting agencies such as the Food and Drug Administration to get involved.
Andresen said he would have no problem cooperating with health regulations governing edible marijuana products.