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Marijuana: Feds file to take David Krause's pot warehouse, $850K in seized funds

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Big photos and more below.
In June 2013, we told you about a 71-count indictment accusing businessman Conley Hoskins and eleven others with defrauding investors who wanted to cash in on the state's booming medical marijuana industry.

That move was taken by the Colorado Attorney General's Office, but now, the feds are getting involved. The U.S. Attorney's Office has filed a forfeiture action to take a marijuana warehouse owned by indictee David Krause, seen here, plus $850,000 in seized funds. Photos, documents and details below.

At the time of last year's indictment, as we've reported, Carolyn Tyler, spokeswoman for Colorado Attorney General John Suthers, said, "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 Krause, the 2013 indictment, on view below, names Conley Hoskins of Jane Medicals, as well as Dallan Dirkmaat, Brenden Joyce, Yesenia Melendez, Audra Wimer, Kurt Criter, Nathan Newman, Ryan Tripp, Carols Meza, Dialyne Parker and The People's Law Firm.

According to that 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.

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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."

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This image of Conley Hoskins golfing is cropped from a photo that appears on Black-Tie Colorado's website.
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."

Assertions like these form the core of the U.S. Attorney's Office forfeiture complaint, which names several banks with which the defendants are said to have worked. But the focus is the warehouse owned by Krause, who was allegedly concerned that illegal activities would splash back on him.

Continue for more about the marijuana warehouse seizure filing, including photos and documents.



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15 comments
George
George

According to the Denver Post: "Despite the indictment and the federal complaint, all the dispensaries connected to the warehouse are listed in state records as "operational pending" — meaning they are allowed to stay open while state regulators decide whether to deny their license applications."

http://www.dailycamera.com//ci_25312736


So much for the "tight oversight by the Department of Revenue".

What a bunch of fakers!

Brendan Flynn
Brendan Flynn

knew the feds would take over...greedy pricks.

Amber Rae Schultes
Amber Rae Schultes

Bc honey, a lab can be set up, manufactured n destroyed in the matter of days..... It takes months to veg n flower, flowers!! And pot growers aren't scared to plant their feet. Sketchy people move operations a hundred times...

Clayton Capra
Clayton Capra

Because it's harder work. This is easy pickings.

Nick Moncivais
Nick Moncivais

Thank you!!! Couldn't have said it better myself

Sean Milano
Sean Milano

Why doesn't the law enforcement community go after the meth and heroin that are destroying lives all over the place now that they don't have to focus on pot? Plenty of work to do there.

Bradley Crable
Bradley Crable

I'm sure the Fed's can use his Marijuana and the $850,000.00 in cash!

DonkeyHotay
DonkeyHotay topcommenter

 "Through tight oversight by the Department of Revenue, ..."


ROTFLMAO !!



FreeTheWeed
FreeTheWeed

The incompetent cowards at MMED handed the case to them - guaranteed convictions.

DonkeyHotay
DonkeyHotay topcommenter

... they do, you ignorant cunt.


George
George

@FreeTheWeed The MED is nothing more than the information-gathering arm of the DEA.

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