Marijuana: Conley Hoskins among dozen indicted for 71 counts alleging MMJ fraud

Categories: Colorado Crimes

conley.hoskins.photo.205x205.jpg
Big photos and more below.
Update: Photos of all those charged and the complete indictment follow our original post below:

Later today, the Colorado Attorney General's office will formally release a 71-count indictment targeting businessman Conley Hoskins and eleven others with defrauding investors who wanted to cash in on the state's booming medical marijuana industry.

We got an early look at the document. It details a complex plot involving Jane Medicals, whose website notes locations in Denver and Lakewood.

When asked about the indictment, Carolyn Tyler, spokeswoman for attorney general John Suthers, says, "Just as we suspected, a medical marijuana business was perpetrating fraud. Through tight oversight by the Department of Revenue, this elaborate scheme was exposed and will be prosecuted."

In addition to Hoskins and Jane Medicals, the indictment maintains that Dallan Dirkmaat, David Krause, Brenden Joyce, Yesenia Melendez, Audra Wimer, Kurt Criter, Nathan Newman, Ryan Tripp, Carols Meza, Dialyne Parker and The People's Law Firm were also involved in "the racketerring activity that was related to the conduct of the enterprise."

According to the document, Hoskins, attorney Dirkmaat and Dr. Gerald Searle grew up together in Idaho, and the longstanding friendship of Hoskins and Dirkmaat led them to take part in joint business ventures that included construction and car washes in addition to dispensaries. Specifically, the offices for the dispensaries shared space with Dirkmaat's law firm. Searle, for his part, moved his base of operations to the Jane Medicals building, making it easier to write referrals for the dispensary.

jane.medicals.banner.jpg
A banner from the Jane Medicals website.
As Hoskins began to concentrate on medical marijuana, the indictment alleges that his "plan to expand his marijuana businesses through investments took a turn down the criminal path. This path included defrauding those same individuals who sought to partner or invest with Mr. Hoskins as he expanded his marijuana businesses."

Criter, identified as an established businessman, is said to have been charged with creating a prospectus that was provided to investors and potential partners -- among them individuals outside the State of Colorado. But prosecutors say the information wasn't entirely genuine: "This prospectus included false sales figures, assets and liabilities and made numerous material omissions."

conley.hoskins.golfing.jpg
This image of Conley Hoskins golfing is cropped from a photo that appears on Black-Tie Colorado's website under the heading "Legal Administrators Tee Off for Children's Advocates."
And what did Hoskins and company supposedly do with the cash they collected? According to the indictment, it wasn't poured into the dispensaries but "diverted for other unrelated purposes, including but not limited to paying off personal debts and business debts on the likes of car washes owned by Mr. Hoskins."

The indictment's narrative also maintains that "several members of the enterprise engaged in money laundering and tax evasion. These actions allowed enterprise members to hide their illicit proceeds from law enforcement and/or taxing authorities and to expand their marijuana production capabilities. Despite taxable earnings and/or taxable sales, others achieved similar goals of hiding their illegal marijuana proceeds or collected sales tax from law enforcement and/or taxing authorities by filing false returns or simply failing to collect or pay over trust taxes.

"Some members even used portions from the proceeds from their illegal sales of marijuana and tax schemes to pay for personal items, including but not limited to vehicles and debt on other businesses."

Spokeswoman Tyler believes this scam was the first of its kind to be prosecuted by the AG's office. She declines to speculate about whether others are perpetrating similar fraud. In this case, though, "the process worked as intended."

Update: Here are photos of the individuals named in the indictment, as provided by the Colorado Attorney General's Office. The document itself follows.

audra.wimer.photo.jpg
Audra Wimer.

brenden.joyce.photo.jpg
Brenden Joyce.
Continue for more photos of those indicted in the 71 count fraud allegation, plus the indictment and a release from the Colorado Attorney General's Office.

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163 comments
jmilnes2010
jmilnes2010

You're focus is completely on Hoskin's petty case when the MMED is pulling the SAME BULLSHIT on 150 stores in the past 14 DAYS ALONE! The MMED is a criminal group, bought out by the biggest companies to shut down the competition. The MMED is STEALING BILLIONS OF DOLLARS FROM THESE STORE OWNERS JUST TO FUNNEL OUT THE MONEY FOR THEMSELVES. This is the criminal government we're talking about who spends all day blaming everyone else for THEIR INCOMPETENCY, and gladly takes Millions and millions of dollars to funnel their pockets. The MMED has done a POOR job of initiating this business and all of these shut down stores need to engage in lawsuits against the MMED for their clear ROBBERY of the business owners of America. THIS IS HOW THEY DESTROY THE ECONOMY!


Hoskin's has a RIGHT OF DUE PROCESS you anti american scumbags! These fucking "liberals" spend all day telling people how liberal they are that you don't deserve due process and you're free speech is trampled. You don't know this person, all you know is what the media is telling you and what the government wants you to know. Your opinions about the person are invalid, the focus i here should be on the MMED's REGULATORY INCOMPETENCE and their clear robbery of the small business owners that make up the real economy.


THE REAL CRIMINALS ARE IN GOVERNMENT

jmilnes2010
jmilnes2010

Jane Medicals and Higher Health Medicinal FIGHT BACK against the lazy incompetence of the MMED!! Business owners, fight back against the Department of Revenue and sue them for REGULATORY INCOMPETENCY. The MMED is engaging in the criminal shutdown of business without DUE PROCESS as guaranteed in the 4th, 5th, and 6th amendments. The MMED has FAILED to ensure consistency with lawmaking and the upholding of the law, and has FAILED to get its regulations placed since the PASSING of amendment 64.

DonkeyHotay
DonkeyHotay topcommenter

Hey Michael, why isn't this story tagged / categorized under Marijuana ??

What are you trying to hide?


DonkeyHotay
DonkeyHotay topcommenter

              Ask a Bongsucking Stoner - Question of the Day

Dear Bongsucker,

How much is a Marijuana McLawyer's advice worth if they can't keep themselves from being arrested and convicted of crimes?

Be specific and show your work.

Yours truly,

Donkey

ps: this is an open book quiz, and you may use a calculator if needed.

.

Yossarian
Yossarian

This AP story says that no licenses have been issued yet for any mmj businesses, leaving them all easy prey for the feds, with the DOR as the surveillance arm of the DEA.

Marijuana regulators helping bust illegal grows
http://www.denverpost.com/news/marijuana/ci_18259361

Figures from the department show there are 809 dispensaries, 321 infused product manufacturers, and more than 1,230 cultivations lawfully operating in Colorado.

Postlethwait said those businesses have met mandatory deadlines and have applications pending for marijuana business licenses. None of those businesses have been issued marijuana licenses because of the time it takes to verify other requirements, such as a criminal background check for owners and a close examination of records to ensure financial backing comes from within Colorado. 

Juan_Leg
Juan_Leg

Question : 

As w/ the jail HOLDING an individual til they can 'blow' under the legal limit, will the same apply w/ their brilliant 'nans' limits ? The latter possibly taking a week or more . Do we have the necessary additional 20,000 cells ? PRIVATE INCARCERATION COMPANIES IS THE ANSWER !!!

at $125.00 per day per stoner ......

DonkeyHotay
DonkeyHotay topcommenter

I don't see any Civil Forfeiture of Assets filed, seeking to seize $$$, bank accounts, real estate used for these criminal endeavors, houses, vehicles and other assets purchased with this illegal drug money ... perhaps the State is going to let the DEA and the IRS harvest this easy low-hanging fruit.


Juan_Leg
Juan_Leg

I was in fact contacted by friends w/ money who reside out of state . They were smart enough to call first, and I was honest NOT to take EASY advantage of their ignorance/dreams .....

Juan_Leg
Juan_Leg

If you're blind & crippled, A64 IS FOR YOU !!!

As far as it goes for the remaining %99, who knows ???......

Juan_Leg
Juan_Leg

I wish pot was still illegal in Colorado ....

LOL !!!

Jay Jurgens
Jay Jurgens

i saw this story last night and if these people are guilty then they will have to face the music and play its tune but the assistant da on tv made the statement the whole mmj industry is a farce.that is HIS opinion and if he wants to talk about farces how much money did the state government make on licensing fees 1,2,3 times over as well as slipping things i have read about.lets talk about the farces of the woman busted for dui and carrying a concealed weapon that got off scott free and the other instances involving state lawmakers that go unpunished simply because they are who they are.this was voted for and approved by the very people that pay his salary

NortonArbelaez
NortonArbelaez

According to HB-1284, theft, fraud, laundering, and all the other non-drug related crimes Conley Hoskins committed are welcome in our Medical Marijuana Industry. Crooks like Conley are welcome, but somebody who was charged with a cannabis related felony isn't allowed to work in the medical marijuana industry. That's how I wanted it. If you can't beat 'em, eliminate them

DonkeyHotay
DonkeyHotay topcommenter

Hey MMIG Pigs! ... you feeling the heat yet?


DonkeyHotay
DonkeyHotay topcommenter

Special Offender – 100 Pounds of Marijuana or Marijuana Concentrate, §18-18-407(1)(e),
C.R.S. Sentence Enhancement 3344A 

On or about and between May 1, 2010 and May 1, 2012, in the State of Colorado, CONLEY HOSKINS, committed the felony offenses charged in counts Four, Five, Six, Seven, Thirteen, Fourteen, Fifteen, Sixteen, Seventeen, Eighteen, Nineteen, Twenty, Twenty Six, Twenty Seven,Thirty Six, Thirty Seven, Thirty Eight, Thirty Nine, Forty and Forty One (4, 5, 6, 7, 13, 14, 15, 16,17, 18, 19, 20, 26, 27, 36, 37, 38, 39, 40 and 41) and possessed, dispensed, sold, distributed, or imported into the State of Colorado a quantity in excess of one hundred pounds of marijuana or marijuana concentrate; in violation of §18-18-407(1)(e), C.R.S. (SE), and against the peace and dignity of the People of the State of Colorado.


What Dispensary does not sell or produce at least 100 pounds of pot over a 2 YEAR period? ... i.e. about 4 pounds per month.

Good thing that Every Dispensary must self-incriminate and report every single GRAM they produce and/or sell, directly to the same Government that will indict and prosecute them criminally, if they so desire.

                *** REGULATION WORKS! ... FUCK YEAH! ***

DonkeyHotay
DonkeyHotay topcommenter

Special Offender - Source of Income, §18-18-407(1)(b), C.R.S. Sentence Enhancement! 33442 

On or about and between May 1, 2010 and May 1, 2012, in the State of Colorado,CONLEY HOSKINS, committed the felony offenses charged in counts Four, Five, Six, Seven, Thirteen,Fourteen, Fifteen, Sixteen, Seventeen, Eighteen, Nineteen, Twenty, Twenty Six, Twenty Seven,Thirty Six, Thirty Seven, Thirty Eight, Thirty Nine, Forty and Forty One (4, 5, 6, 7, 13, 14, 15, 16,17, 18, 19, 20, 26, 27, 36, 37, 38, 39, 40 and 41) as part of a pattern of manufacturing, sale, or distributing controlled substances, which constituted a substantial source of the defendant's income and in which the defendant manifested special skill or expertise; in violation of §18-18-407(1)(b),C.R.S. (SE), and against the peace and dignity of the People of the State of Colorado.


This indictment must be an example of the "10,000 Arrests" that the lying liars behind A64 promised to eliminate ... every year.



DonkeyHotay
DonkeyHotay topcommenter

From December of 2011 until June of 2012, Mr. Hoskins and Mr. Dirkmaat (individually and as owner and high managerial agent of The People’s Law Firm) conspired with one another and  participated in a theft scheme. This scheme by these men, utilizing the business entity of The People’s Law Firm, culminated in the theft of moneys from Brenden Joyce and his wife Dana Joyce, David Krause, Nathan Churchill and Lawrence Deutsch.

Wow! ... These Criminal Clowns are accused of defrauding THEIR OWN Indicted Criminal Co-Conspirators!

... so much for honor among thieves, eh?


Good thing the MMED's "extensive vetting process and background checks" kept lowlife criminal scumbags from operating MMJ businesses in Colorado, eh?

Kendra Wiig
Kendra Wiig

Yup. Colorado is still experiencing a "weed bubble," so it's not surprising at all that it comes along with its own pyramid scams and sketchy opportunists.

Stephan Reuchlein
Stephan Reuchlein

Ummmm, I bet you 99.9% of those with MMJ cards are liars and frauds, this type though, not surprising.

Yossarian
Yossarian

@DonkeyHotay Bongsucking stoner sez: According to Wasteword math, since there are 128 eighths in an ounce, then a Marijuana McLawyer's advice is priceless!

RobertChase
RobertChase topcommenter

@Yossarian  HB10-1284 says that the MMED "may" disclose information about grows to law enforcement agencies on request, so the concern about the DEA using it to collect information is valid.  It is not clear what requests for information the DEA may have made, or whether the MMED has granted any.  Two years ago, Matt Cooke (head of the MMED at the time) told me that no such request had been made, but we do not know whether they now have been, or whether the MMED would disclose the fact.  I will make inquiries.

Of course the MMED and DOR provided information to the grand jury in this case (which does not involve the Feds).  The allegations are not of conduct which could possibly be construed as complying with the extant laws, and while there are more indictments coming down, and the prohibitionists undoubtedly want more, there is no indication that the MMED is going after compliant businesses.

DonkeyHotay
DonkeyHotay topcommenter

@Jay Jurgens "the assistant da on tv made the statement the whole mmj industry is a farce"

For the most part, it is.

Yossarian
Yossarian

@DonkeyHotay Police work has never been so easy, with all the paperwork required by the DOR. No wonder the MMED jobs are the most coveted law enforcement jobs in the country.

RobertChase
RobertChase topcommenter

You criticize Article XVIII, Section 16 of our Constitution because it has and will not prevent many arrests for conduct involving cannabis, but you have no interest in ending those arrests yourself; surely a closet prohibitionist is infinitely worse than those who moved us closer to our goal, and failed only if measured against the impossible standard of rolling back Prohibition overnight.


P.S.  If the defendants take this to trial, jurors concerned for justice should acquit them!

Yossarian
Yossarian

@DonkeyHotay This is where the MMC licensing fees go -- to prosecute fellow business owners. Sounds like a good business plan, until you realize that John Suthers has no intention of stopping his witch hunt until ALL dispensaries are closed.

DonkeyHotay
DonkeyHotay topcommenter

During the above mentioned time frame, Mr. Hoskins sought to purchase a third medical marijuana dispensary named Higher Health Medical, LLC. He lacked the funds to do so and sought help from his friend, Mr. Dirkmaat. Close in time to December of 2011, the two men conspired to steal over $130,000 from Brenden and Dana Joyce. The first part of the scheme unfolded when Mr.Hoskins offered Mr. Joyce an option to be a partner in the purchase of Higher Health Medical, LLC. Mr. Dirkmaat, through his law firm, used his client trust account to falsely portray that Mr. Hoskins possessed over $100,000.00 of his own money to be put towards the purchase of Higher Health Medical, LLC. 


Convinced by the false representations of Hoskins and Dirkmaat, Mr. Joyce put his and his wife’s money into the trust account of The People’s Law Firm at UMB bank. Instead of the money being spent on the purchase of Higher Health Medicals, LLC., the Joyce’s money was fraudulently used by Mr. Hoskins to pay debts and personal expenses unrelated to the purchase of the dispensary. Mr. Dirkmaat stood complicit in these criminal actions of Mr. Hoskins and the fraudulent diversion of Mr. and Mrs. Joyce’s money.

Mr. Joyce eventually became suspicious of the behavior of Mr. Dirkmaat and Mr. Hoskins. Mr. Joyce contacted Mr. Dirkmaat via email to request the return of his $130,000.00. In an email response, Mr. Dirkmaat delayed the return of the money by providing Mr. Joyce a false excuse. Needing to return the money or risk exposure of their theft scheme, Mr. Dirkmat and Mr. Hoskins convinced another individual named David Krause to invest in the purchase of Higher Health Medical. Mr. Krause was informed by Mr. Hoskins that his money would be used exclusively to purchase Higher Health Medical. Within days of the receipt of Mr. Krause’s investment, Mr. Hoskins and Mr. Dirkmaat diverted Krause’s $130,000 from its intended purpose and used it to create the appearance that the escrow money of Brenden and Dana Joyce had been returned (despite having

already been spent by Hoskins and Dirkmaat).In January of 2012, Hoskins and Dirkmaat targeted another investor named Nathan Churchill. Mr. Churchill, an ex-patriot living in Brazil for the last thirty years, invested at least$150,000.00 with Mr. Dirkmaat and Mr. Hoskins for the purchase of High Health Medical and a subsequent planned expansion of Mr. Hoskins’ medical marijuana businesses. 

Instead of being used as promised, Mr. Churchill’s money was fraudulently diverted to pay debts and personal expenses unrelated to the medical marijuana businesses of Mr. Hoskins.

In May of 2012, Hoskins and Dirkmaat again targeted another investor named Lawrence Deutsch. Mr. Deutsch, invested $200,000.00 with Mr. Dirkmaat and Mr. Hoskins for the purchase of High Health and a subsequent planned expansion of Mr. Hoskins’ medical marijuana businesses. Instead, Mr. Deutsch’s money was fraudulently diverted to pay debts and personal expenses unrelated to the medical marijuana businesses of Mr. Hoskins. Ultimately in May of 2012, Mr. Hoskins did purchase Higher Health Medical, LLC for $75,000. However, Mr. Hoskins has only delivered approximately $60,000 of the original purchase price.




audreyhatfield
audreyhatfield

Im sure there has been but not 99.9 percent. There actually are legitimate reasons for patients to have a card. As well as legitimate businesses operating within the law!

RobertChase
RobertChase topcommenter

@Stephan Reuchlein Moron.

DonkeyHotay
DonkeyHotay topcommenter

@TreeSkunk <== supports lowlife criminal racketeers, shysters and frauds infiltrating and profiteering from the "medical" marijuana industry.


click ... click ... BOOM!


DonkeyHotay
DonkeyHotay topcommenter

@Yossarian ... they don't call it the Medical Marijuana CRIMINAL Enforcement Division for naught. 

RobertChase
RobertChase topcommenter

@DonkeyHotay So what?  We can all read the indictment if we want to; we hardly need you filling up the comment section with it.  What you underlined confirms that the Attorney General employs illiterate lawyers -- Mr. Churchill, the "ex-patriot" [sic] indeed!


P.S.  If anyone cares, "ex-patriot" refers to someone who was once a patriot, but is no longer; an expatriate, on the other hand, is someone who has left his or her native country to reside in another, often temporarily.  The words are homnyms, but I would expect any lawyer to be capable of distinguishing them, before being admitted to law school.

DonkeyHotay
DonkeyHotay topcommenter

@audreyhatfield ... Federal Law says ALL marijuana activity is ILLEGAL ... there are NO "legitimate businesses operating within the law" ... they are ALL Continuing Criminal Enterprises engage in Racketeering Felonies, Drug Crimes and Criminal Money Laundering.

Yossarian
Yossarian

@DonkeyHotay Ha! How about the Sederberg/Vicente Magical Ounce?

Magical thinking probably gets them just as far in the courtroom. 

It's been said, "A man whose lawyer cannot perform basic math, has a fool for a lawyer."


DonkeyHotay
DonkeyHotay topcommenter

@Yossarian ... apparently the Colorado Bar Association will accept any lowlife criminal scumbag as a member ... not much different than the MMED standards for the MMJ industry.


RobertChase
RobertChase topcommenter

@Yossarian 

That's right, so people who want to end Prohibition should fight together against it!

RobertChase
RobertChase topcommenter

@Yossarian  If you think "regulation" is a euphemism for "law", you betray your ignorance.  There were, and remain, far more statutes against cannabis than three, and these laws have nothing to do with Article XVIII, Section 16 of our Constitution.

Yossarian
Yossarian

@DonkeyHotay I wish plutonium were regulated like medical marijuana. It would be nice for an alarm to off when a gram goes missing like they do for mmj.

DonkeyHotay
DonkeyHotay topcommenter

@Yossarian ... and deliberately conflates their "harmless product that never killed anybody" with DEADLY Alcohol that harms, maims and kills 10s of THOUSANDS of people ... every year!

Regulate Marijuana Like Plutonium! -- Regulation Works!

Regulate Marijuana Like Weapons of Mass Destruction -- Regulation Works!

Yossarian
Yossarian

@DonkeyHotay I'll take a black market over this "industry" any day. What "industry" lobbies for MORE government regulation??? Fools and tools.

DonkeyHotay
DonkeyHotay topcommenter

@Yossarian ... and far fewer douchebags, losers and fools in the industry.

Yossarian
Yossarian

@DonkeyHotay Give me back "simple prohibition". 3 criminal statutes against mj, instead of 300 pages of new laws disguised as "merely regulations".

DonkeyHotay
DonkeyHotay topcommenter

@audreyhatfield ... because  lying liars like Vicente and Tvert and a lazy dishonest media have convinced clueless gullible stoners that CONTINUED CRIMINAL PROHIBITION + extra REGULATIONS + huge TAXES is "legalized".


audreyhatfield
audreyhatfield

Exactly, And it's called legalization because???

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