SACRAMENTO, Calif. – Internal Revenue Service agents last week seized almost $250,000 from the accounts at SAFE CU of two local dispensaries in a probe into alleged concealment of medical marijuana proceeds and potential money laundering.
Warrants sought by a U.S. Treasury Department criminal task force alleged Mary Jane’s Wellness and One Love Wellness Center may have violated money laundering laws by structuring their cash deposits in the credit union at less than $10,000 each. None of the individual deposits exceeded $10,000 and many were separated by just a few minutes, according to an IRS agent who signed the warrants.
Credit unions and banks are required under anti-money laundering laws to notify the IRS of any deposit of $10,000 or more.
The seizures come amid a haze of legal policies on the growing use of medical marijuana and its sale to the public, which is legal in California. The federal government does not recognize the legal medical use of marijuana, but has largely left California’s marijuana dispensaries alone. Representatives for the two dispensaries said the action was part of a campaign by the federal government to send a message to California’s pot shops, a source of irritation to the Feds.
The account seizures follow recent federal charges of conspiracy and illegal marijuana sales against five people associated with another Sacramento dispensary, R & R Wellness Collective.
Credit unions in other states where medical marijuana is legal, such as Colorado, have refused to accept deposits from marijuana dispensaries.
In the latest case, federal banking officials were notified of suspicious transactions by SAFE CU, which held separate accounts for the two dispensaries.
In documents filed with the court, authorities said Mary Jane’s Wellness made deposits of $118,375 over 21 consecutive days and another $26,786 over three days, and One Love Wellness, made 19 deposits – $102,713 in total – into two accounts in a structuring scheme to keep deposits less than $10,000.
