Authorities conducting investigations at a cannabis warehouse during a significant THC product seizure.
The Allen Police Department has successfully seized more than 75,000 pounds of illegal THC products from multiple hemp warehouses in Dallas as part of a crackdown on unlawful distribution. This operation, which followed months of undercover investigations, resulted in the arrest of five individuals. The seized products exceeded Texas’s THC legal limit of 0.3%, with some products testing as high as 78%. Concerns about health risks and the need for regulatory changes are rising as legislative actions like Senate Bill 3 move forward.
Allen, Texas – The Allen Police Department has seized over 75,000 pounds of illegal THC products in a large-scale operation aimed at dismantling the unlawful distribution of these substances in the Dallas area. The raids took place on a Tuesday when police executed search warrants at three hemp warehouses located on Harry Hines Boulevard in Dallas: Frontline Wholesale, Cannify Goods, and Monster Smoke Wholesale. Additional residential search warrants were also executed in the nearby cities of Plano, Carrollton, and Colleyville concerning the owners of the warehouses.
The operation stemmed from a months-long undercover investigation probing into hemp-derived products that exceeded Texas’s legal THC concentration limit of 0.3%. Police found the THC concentrations in the seized products ranging significantly, from 7% to 78%. Under Texas law, any product exceeding this 0.3% threshold is classified as a controlled substance, making possession and distribution illegal.
According to law enforcement officials, the total estimated value of the seized products, cash, and other assets is around $7 million. Undercover officers had previously conducted multiple purchases of illegal products from the targeted warehouses, leading to the execution of the search warrants. The operation resulted in the arrest of five individuals, and police destroyed many illegal products during the seizures, in addition to confiscating point-of-sale systems and employee computers.
Allen Police Chief Steve Dye expressed his concerns regarding the significant cash flow linked to these illegal businesses, emphasizing the health risks posed to young people consuming unregulated THC products. In light of the ongoing situation, Chief Dye has advocated for Senate Bill 3, which aims to outlaw all THC products, including gummies, drinks, and vaping items. This legislation is currently awaiting the signature of Governor Greg Abbott. If enacted, Senate Bill 3 could simplify THC testing procedures for law enforcement concerning seized products.
On the other hand, David Sergi, the attorney representing Monster Smoke Wholesale, criticized the testing methods employed by the authorities, characterizing them as unreliable. Sergi argued that the raids were based on inaccurate testing results, contending that the businesses in question were legally operating under both state and federal laws. Prior to the raids, police had issued warnings to these businesses in May regarding potential illegal sales of THC products.
The recent raids have drawn attention to the ongoing tensions between law enforcement and the cannabis industry, particularly concerning compliance with laws at both the state and federal levels. Some local businesses responded by forming the Allen Hemp Coalition and sought legal counsel from Sergi following subpoenas issued by the DEA for records before the raids occurred. A federal judge subsequently halted the DEA’s subpoena activities against these businesses.
This incident underscores the complexities and challenges facing the cannabis industry in Texas, especially as authorities continue to navigate the murky waters of legal and illegal THC products. It will remain to be seen how these events will unfold, particularly with legislative developments like Senate Bill 3 potentially reshaping the landscape of THC distribution and regulation in the state.
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