Dallas Authorities Raid Hemp Warehouses Over Illegal THC Claims

News Summary

Dallas police and the DEA conducted raids on three hemp warehouses amid allegations of illegal THC distribution. Several search warrants were executed in the operation, resulting in the seizure of significant amounts of THC products. Warehouse representatives claim compliance with state law, while law enforcement argues the raids were based on undercover investigations. The incident raises questions about the legality of THC distribution in Texas and coincides with legislative discussions on banning consumable THC products.

Dallas Authorities Conduct Widespread Raids on Hemp Warehouses Amid Allegations of Illegal THC Distribution

Dallas, Texas – On Tuesday morning, Allen Police Department and the Drug Enforcement Administration (DEA) executed search warrants at three hemp warehouses in Dallas, targeting allegations of illegal THC distribution. The locations raided include Monster Smoke Warehouse, Frontline Wholesale, and Cannify Distribution, all situated off Harry Hines Boulevard, which are known for selling hemp-based products.

During the operation, authorities seized numerous boxes from the warehouses, loading them into at least two box trucks. In addition to the warehouse raids, residential search warrants were executed in nearby cities including Plano, Carrollton, and Colleyville. These actions are part of a broader investigation focused on dismantling the illegal distribution of consumable THC products.

According to the Allen Police Department, the search warrants stem from several months of undercover investigations, during which officers allegedly purchased illegal THC products from these warehouses. This recent operation follows earlier actions in 2024, where authorities raided nine hemp shops linked to the ongoing investigation.

Representatives for Monster Smoke Warehouse, including attorney David Sergi, are challenging the legitimacy of the raid. Sergi is currently seeking copies of the search warrants and argues that the products seized during the operation comply with both the Farm Bill and Texas state law, which stipulates a THC limit of 0.3%. He suggests that the testing methods used by the Department of Public Safety and associated labs may be flawed and lead to misleading results regarding THC levels in the products.

The Texas Forensic Science Commission has raised concerns about specific methodologies employed for testing cannabinoids, indicating the possibility of incorrect findings. Each product from Monster Smoke Warehouse contains a QR code linked to a Certificate of Analysis (COA), confirming adherence to legal THC levels.

Sergi criticized the raids as an overreach by law enforcement, framing them as an attack on legitimate business owners who operate within legal boundaries. Customers frequenting the impacted businesses expressed astonishment at the raids, noting that they are licensed and sell compliant hemp products.

Notably, these raids coincide with ongoing legislative discussions in Texas regarding Senate Bill 3, which seeks to ban consumable THC products. In response to the operation, Allen Police Chief Steve Dye stated that the warehouse raids were a result of undercover purchases and were not motivated by political pressures related to the bill. However, the timing has prompted scrutiny and speculation.

During the raids, estimates indicate that over 75,000 pounds of THC products were confiscated, alongside approximately $7 million in cash and assets. Furthermore, five individuals were arrested, and the Allen Police confirmed the seizure of products, point-of-sale systems, and personal computers belonging to employees of the warehouses.

Law enforcement’s actions have been described by Sergi as an escalation of intimidation tactics against businesses that offer legal hemp products. Prior to this, the Allen Police had issued warnings to local businesses, alerting them to the potential revocation of occupancy certificates if they were found in violation of laws pertaining to THC products.

The investigation into these warehouses signifies a growing concern regarding the legality of THC distribution in Texas, as the intersection of law enforcement and legislative actions can lead to significant impacts on businesses operating under current regulations.

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