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Feds Withhold Information On S.F. Dispensary Raids

Ann Harrison ontherecord.org

San Francisco, CA June 22, 2005 -- After raiding three and possibly four medical cannabis dispensaries in San Francisco today, spokespeople for the DEA are releasing few details about the scope of the investigation and declining to say if anyone is actually in custody.

The San Francisco Chronicle is reporting (from an anonymous law enforcement source) that the dispensaries were not targeted for drug operations, but because they were fronts for money laundering. This might account for the presence of IRS agents at the site, but not the DEA who was clearly leading the investigation.

The Chronicle is also claiming (again from an unnamed law enforcement source) that federal agents, joined by the SFPD, raided 20 homes and businesses as part of the operation. Stone-faced DEA agents referred all questions regarding today’s raid to the San Francisco U.S. Attorney’s office. A spokesman for the office, Luke Macaulay, said that there were arrests but will not comment further. Federal agents did arrest Dr. Molly Fry and her husband Dale Schafer today. Dr. Fry, who recommends cannabis to qualified patients, has been under investigation by the DEA. Both were arraigned today at the Sacramento Federal Courthouse

The U.S. Attorney’s office, the DEA and the IRS are holding a press conference tomorrow morning at 11:30 at the San Francisco federal building. To even attend the press conference, you must present a government issued photo ID and a “valid media credentials.”

While he would not provide any information on the raids, Macaulay did go out of his way to try and shield the involvement of the San Francisco Police Department - despite the fact that SFPD Sgt. Marty Halloran was present at a raided dispensary.

“I want to point out that the San Francisco Police Department did not participate in the medical marijuana dispensary search,” said Macaulay. When it was pointed out that Sgt. Halloran was seen helpfully stringing police tape in front of the raided Alternative Relief Co-Op at 1945 Ocean Avenue, Macaulay said I should refer my question to the SFPD.

SFPD spokesperson Neville Givens also denied that the SFPD was involved in the operation. “We are not involved in any enforcement action against any medical marijuana club,” said Givens. Informed that Sgt. Halloran was present at the raid, he said he would send a press release from the SFPD public affairs office.

According to the SFPD press release: “This morning, June 22nd, the San Francisco Police Department participated in an enforcement operation which involved search and arrest warrants, targeting multiple locations throughout the Bay Area. This operation was part of a long-term federal criminal investigation. Although there were several medical marijuana clubs that were involved in this investigation, the SFPD did not take part in any investigation of these clubs or take any enforcement action against these clubs.”

DEA public information officer Casey McEnry, who confirmed at the Alternative Relief Co-Op that SFPD and the Oakland Police Department was involved in the federal investigation, also attempted to back peddle and claim that the SFPD was not directly involved. “They did not participate in the execution of the search warrant,” said McEnry who nevertheless confirmed that the SFPD and OPD were involved in the larger operation.

Matt Dorsey, a spokesman for the San Francisco City Attorney’s office, was eager to distance his office from the federal investigation. Dorsey confirmed that the city has an ongoing investigation against a dozen clubs that may have violated the city’s April 1st moratorium against medical cannabis clubs. But he said there was no link between the city’s investigation and the federal raid. “We are not involved in the federal raids and we have not contacted or been contacted by the DEA,” said Dorsey who added that he did not anticipate a large city-led crackdown. “We have evidence that the majority of the dispensaries being investigated opened before April 1st.”