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  1. #1
    Senior Member JohnDoe2's Avatar
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    USDOJ seizes 100+ houses tied to China-based criminals

    US seizes pot-growing houses tied to China-based criminals


    • By DON THOMPSON, ASSOCIATED PRESS

    SACRAMENTO, Calif. — Apr 4, 2018, 6:11 PM ET


    The Associated Press
    McGregor Scott, the United States Attorney For the Eastern District of California, discusses the months-long investigation that led to the law enforcement raids on illegal pot grows in roughly 100 Northern California homes, during an interview the Associated Press Wednesday, April 4, 2018, in Sacramento, Calif. The raids, conducted Tuesday and Wednesday in multiple counties, focused on homes purchased with money wired to the United States by a Chinese-based crime organization and used to grow massive amounts of marijuana. (AP Photo/Rich Pedroncelli) more +


    Hundreds of federal and local law enforcement agents have seized roughly 100 Northern California houses purchased with money wired to the United States by a Chinese-based crime organization and used to grow massive amounts of marijuana illegally, authorities said Wednesday.

    The raids culminate a monthslong investigation focusing on dozens of Chinese nationals who bought homes in seven counties. Most of the buyers were in the country legally and came from as far away as Georgia, Illinois New York, Ohio and Pennsylvania, U.S. Attorney McGregor Scott said.


    Much of the pot was shipped back to those states through Atlanta, Chicago and New York City.


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    The drug is legal in California but requires permits to grow and can't be sent across state lines. It is still banned by the U.S. government. Black-market pot farms are often set up in the inland region where authorities carried out the raids because it's cheaper than the San Francisco Bay Area.

    "This criminal organization has put a tremendous amount of equity into these homes through these wire transfers coming in from China and elsewhere," Scott said in an interview with The Associated Press.

    "We're going to take it. We're going to take the house. We're going to take the equity."


    None of the buyers was arrested as authorities seized the houses in what the U.S. Department of Justice called one of the largest residential forfeiture operations ever. Prosecutors will now ask judges to transfer ownership to the U.S. government.


    Authorities were trying to learn if the buyers were brought to the United States for the purpose of buying the houses and were indebted to the criminal organization. They are not ruling out criminal charges but have filed none at this stage of the investigation.


    Down payments were financed by money wired from Fujian Province in China, authorities said. Many of the transfers stayed just below the $50,000 limit imposed by the Chinese government.


    The buyers generally used the same Sacramento real estate agents, borrowed from private lenders who usually charge higher interest rates and require larger down payments than traditional banks, and used straw buyers who purchased the properties on behalf of the real owners.


    A message left with the Chinese consulate general's office in San Francisco was not immediately returned.


    The federal crackdown on the illegal pot operations comes as California is months into creating the world's largest legal marijuana market amid uncertainty about whether the U.S. government will try to shut it down.


    More than 500 officers, including SWAT teams, fanned out over two days to search and seize about 75 houses and two real estate businesses. The remaining 25 houses were raided previously.


    They seized more than 36,000 marijuana plants, 115 kilograms (253 pounds) of processed marijuana, at least $68,500 in cash and 15 firearms, including one that had been stolen. They also seized generators, one of which was strong enough to power three normal homes.


    Most of the suburban houses were valued at $300,000 to $500,000, though some were in rural areas and some in more upscale neighborhoods.


    Black-market pot operations have been a widespread problem in Northern California for at least a dozen years. Sacramento officials have estimated that there might be as many as 1,000 illegal grow houses in California's capital city.


    Suburban tract homes are transformed with high intensity lights and irrigation pipes, gutted to add ventilation pipes and air filtration systems to vent the tell-tale smell through the attic, and stacked with tables full of marijuana plants that could produce multiple crops each year.


    "It's like industrial agriculture," Scott said.


    Authorities often are alerted when the houses catch fire because of illegal electrical hookups or when they are found to be using extraordinary amounts of electricity to power the equipment.

    http://abcnews.go.com/Politics/wireS...based-54237083
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    They seized more than 36,000 marijuana plants, 115 kilograms (253 pounds) of processed marijuana, at least $68,500 in cash and 15 firearms, including one that had been stolen. They also seized generators, one of which was strong enough to power three normal homes.

    Most of the suburban houses were valued at $300,000 to $500,000, though some were in rural areas and some in more upscale neighborhoods.
    And the chinese "nationals" are in the country legally and WHY IS THAT? No background checks on people entering this country and allowed to purchase properties - if it is not central american or mexian cartels living illegally or claiming "fear', it is the chinese with money. Why are they allowed to be here and purchase property? Pretty gutsy to use our land for such underground activities. Guess USA is easy pickins with all the snowflakes & their politicians.

  3. #3
    Senior Member Judy's Avatar
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    They didn't even arrest the people responsible. How strange is that?!!
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    More than weird, fishy no arrests. At least deport them pronto. Confiscate everything in their name. Don't care how much money they have, get them out. chinese consulate answer the phone. Get your undesirables outta here. An American would be in jail now hoping for bail.

  5. #5
    Senior Member JohnDoe2's Avatar
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    US police arrest 50 Chinese in raid on US$80 million illegal marijuana growing operation

    Crackdown in
    Washington state targeted gangs running illicit operation that attempted to exploit legalised cannabis market

    PUBLISHED : Thursday,
    07 December, 2017, 1:34am
    UPDATED : Thursday, 07 December, 2017, 8:51pm


    US police have
    arrested at least 50 Chinese nationals and seized US$80 million worth of marijuana plants in a crackdown on a massive illegal growing operation in Washington state, according to local media reports.

    Prosecutors suspect the growers in the northwestern US state operated as a syndicate that sold products to east coast cities such as New York, where prices are much higher than on the west coast, the Washington-based Chinook Observer newspaper reported on Monday.

    About 35,000 plants valued at US$80 million and more than 22kg of processed cannabis were seized in the raid. Police also confiscated 26 vehicles and more than US$400,000 in cash and gold, the report said.




    It is the biggest crackdown on illegal marijuana growing in the history of Washington state’s Grays Harbor county, police told Seattle-based radio station Komonews.

    A county drug task force served search warrants at about 50 locations, including 38 in Grays Harbor, eight in King county and four in Thurston county.


    Green gold: how China quietly grew into a cannabis superpower


    The suspects all were Chinese nationals, Komonews said.

    States that have made cannabis legal are magnets for Chinese gangs that set up illegal plant-growing operations to sell processed cannabis across the US.

    The past few years have seen police in Colorado and California crack down on major illegal operations run by Chinese nationals, Komonews said.

    Washington legalised the growing and selling of recreational cannabis in 2012, joining California, Colorado, Oregon and Nevada as US west coast states that have either already embraced legal marijuana or are about to.




    Lawmakers in Massachusetts and Maine in the eastern US expanded the legalising of marijuana to include recreational use in November.

    Trump administration and US Congress headed for fight over marijuana


    In such states the cannabis industry is heavily regulated, impelling some people to set up unregistered plants to dodge a tax payment, Steve Shumate, chief criminal deputy of the Grays Harbor county sheriff’s office, was quoted as saying.



    This article appeared in the South China Morning Post print edition as: 50 Chinese nationals arrested in US pot raid

    http://www.scmp.com/news/china/socie...s80m-marijuana

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    Senior Member JohnDoe2's Avatar
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    Raids on marijuana grow houses in California often find Chinese ...

    www.sacbee.com/news/state/california/california-weed/article179293106.html
    Oct 17, 2017 - Chinese immigrants have been arrested in multiple recent police raids on marijuana grow houses in California, Colorado and other states, raising questions about how they are recruited.


    Authorities Seize Pot-Growing Houses Tied To China-Based Criminals ...
    sacramento.cbslocal.com/2018/04/04/china-pot-houses-seized/
    1 day ago - SACRAMENTO (AP) – Hundreds of federal and local law enforcement agents have seized roughly 100 Northern California houses purchased with money wired to the United States by a Chinese-based crime organization and used to grow massive amounts of marijuana illegally, authorities said ...



    US police arrest 50 Chinese in raid on US$80m illegal marijuana ...
    www.scmp.com › News › China › Society
    Dec 7, 2017 - US police have arrested at least 50 Chinese nationals and seized US$80 million worth of marijuana plants in a crackdown on a massive illegal ... Washington legalised the growing and selling of recreational cannabis in 2012, joining
    California, Colorado, Oregon and Nevada as US west coast states that ...


    Chinese immigrants increasingly caught up in raids on illegal ...
    www.mcclatchydc.com/news/nation-world/national/article179260221.html
    Oct 17, 2017 - Chinese immigrants have been arrested in multiple recent police raids on marijuana grow houses in
    California, Colorado and other states, raising questions about how they are recruited and financed.


    Chinese Immigrants Keep Getting Arrested During Marijuana Farm ...
    https://nextshark.com/chinese-immigrants-keep-getting-arrested-marijuana-farm-raids-...
    Oct 20, 2017 - Police are baffled by the rising numbers of Chinese nationals, some of whom don't speak or understand English, linked to marijuana grow houses that ... In September, authorities arrested 13 Chinese immigrants in three separate raids conducted in California's Yolo County, Roseville City and Elk Grove, ...


    Chinese national arrested for illegal Palm Desert marijuana grow ...
    www.kesq.com/news/chinese-resident-arrested-in-palm...grow.../645940591
    Oct 26, 2017 - PALM DESERT, Calif. - A Chinese national was arrested Wednesday after authorities confiscated about 1,100 marijuana plants from a Palm Desert residence. Around 12:15 p.m., authorities served a search warrant at a residence on the 100 block of Azzuro Drive. That's near Country Club Drive, a block ...


    Massive Illegal Pot Grow In Western Washington Allegedly Has ...
    nwnewsnetwork.org/.../massive-illegal-pot-grow-western-washington-allegedly-has-co...
    Nov 30, 2017 - We're learning more about a massive illegal marijuana growing operation busted by police in Western Washington this week. ... But then further research uncovered recent marijuana busts involving Chinese citizens in Colorado and California, states that have also legalized pot for recreational use by ...


    Organized Crime Eyed After More Chinese Nationals Jailed in Pot ...
    www.chronline.com/...chinese.../article_3e7e7498-d608-11e7-bb95-3b6a6534e241.h...
    Nov 30, 2017 - The men were suspected of being part of a marijuana trafficking operation on the West Coast between Washington and California. According to ... In October, deputies arrested Jing Ming Gao, 55, of Brooklyn, New York, in a “makeshift bedroom” in a Vader marijuana grow located in a barn. Gao was not ...


    Chinese mob blamed in huge pot bust - Local News -
    www.chinookobserver.com/co/local-news/.../chinese-mob-blamed-in-huge-pot-bust
    Dec 5, 2017 - However, there is growing evidence that illegal grows are proliferating in states where pot is legal, Shumate said. In the last couple of years, police in
    Colorado and California — both states that have decriminalized weed — have busted major growing operations run by Chinese nationals. States that ...


    14 Chinese nationals arrested as authorities seize 9,700 pounds of ...
    https://www.denverpost.com/.../chinese-nationals-arrested-illegal-marijauna-garfield-c...
    Sep 21, 2016 - Federal and local authorities have arrested 14 Chinese nationals -- half of whom were in the country illegally -- in connection with a roughly 2500-plant outdoor marijuana grow discovered earlier this week in Garfield County.
    Last edited by JohnDoe2; 04-05-2018 at 04:12 PM.
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    Senior Member JohnDoe2's Avatar
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    “The biggest grow I’ve ever seen”: California cops bust multimillion-dollar weed “fortress

    PUBLISHED: DEC 14, 2017, 2:35 PM • UPDATED: 15 DAYS AGO
    By Michael Balsamo, the Associated Press

    LOS ANGELES — Police in Southern California raided a weed “fortress” on Wednesday, seizing 35,000 marijuana plants and shutting down an operation they believe was bringing in millions of dollars a month.


    Investigators first turned their sights on the illegal grow operation about two months ago after receiving complaints from neighbors.

    They found the once-abandoned warehouse had been outfitted with a 12-foot metal rolling fence, “fortified doors,” a large concrete wall around the parking lot and surveillance cameras.


    Inside the four-story warehouse, police found thousands of plants stacked next to one another under heat lamps on wood tables and an advanced irrigation system. The electric bill for the property was about $67,000 per month, police said.


    “In my 26 years, it was the biggest grow that I’ve ever seen,” San Bernardino police Lt. Mike Madden said. “There were all different rooms for different processes and hydration, filtration and ventilation. It was pretty extensive.”


    Police and federal investigators raided three properties owned by the same woman and seized 18,000 pounds (8,164 kilograms) of marijuana in total. Eight people who were working in the warehouse in downtown San Bernardino were detained by police, but no charges have been filed in the case, Madden said.


    Investigators are still trying to determine where the marijuana was being sold, Madden said.

    Police were investigating the owner of the properties, Stephanie Smith, 43, but she was not arrested or charged with a crime.

    A telephone number for Smith could not be located in public records.


    California voters have approved the legalization of marijuana, but growers must receive licenses and permits from local governments and the state. Recreational pot sales start in California on Jan. 1, joining the long-running medical cannabis industry.


    “Marijuana has been legalized, but there are stringent requirements,” Madden said. “It’s not that you just get to set up shop where you want to set up.”

    https://www.thecannabist.co/2017/12/...nardino/94665/

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    Senior Member JohnDoe2's Avatar
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    "Federal officials said many of the people tending the grows inside the homes were essentially “indentured servants” forced to remain there and have food and supplies brought to them. Those individuals were offered victim assistance during the raids, and a handful accepted the help, officials said."
    =========================

    Chinese crime syndicate’s alleged pot grows lead to seizure of 100 homes in Sacramento area


    BY SAM STANTON AND DALE KASLER
    SStanton@sacbee.com

    April 04, 2018 12:00 PM
    Updated 4 hours 24 minutes ago

    In the largest operation of its kind, federal agents swept across the Sacramento region Tuesday and Wednesday targeting about 75 homes serving as suspected marijuana growing sites that authorities say are operated by a Chinese organized crime syndicate.

    The raids, which involved more than 500 federal, state and local agents, hit homes from Elk Grove to Sacramento to rural areas and are aimed at forcing the forfeiture of about 100 homes to the federal government, an effort valued at hundreds of millions of dollars in real estate and marijuana.

    “This represents one of the largest residential forfeiture efforts in the nation’s history,” the U.S. Justice Department said.


    The investigation began in 2014 as authorities began to see an uptick in marijuana growing operations concealed in residential neighborhoods throughout the Sacramento area and escalated in the past year as agents used utility bills and sophisticated financial analysis to track millions of dollars coming from China into the United States for the purchase of the homes.


    The buyers, typically Chinese citizens in the country legally, are suspected of turning the homes into pot-growing operations that then shipped the marijuana through trucks, mail and couriers to the Eastern seaboard for sale, authorities say.

    This week‘s raids resulted in the seizure of more than 61,050 marijuana plants, 200 kilos of processed marijuana valued at up to $100 million and about $100,000 in cash, as well as 15 firearms, officials say. Those numbers are expected to grow as the final tallies are calculated.


    The bulk of the raids took place this week, although a couple of dozen had been searched in prior weeks, including one in the 9900 block of Pianella Way, in a quiet subdivision in Elk Grove, about two months ago.

    Neighbors said they saw authorities hauling away black bags filled with marijuana plants and taking a female occupant, who appeared to be Asian, into custody.

    “I just woke up one morning, cop cars everywhere, and all the pot plants were in black bags in the garage,” said Mar Caballero, who lives across the street. “There were guys in hazmat suits.” He said the occupant was taken away in handcuffs.

    The home was later put on the market, and a Realtor’s sign says a sale is pending. Wang Xiong, who works for HP Real Estate, was checking on the property Wednesday afternoon but said he had no information about the buyer, seller or the raid.

    “It’s all news to me,” he said.

    Caballero said he had no previous interaction with the woman but that her living arrangement seemed strange.

    She lived alone but had a minivan, which was almost always parked in the driveway.

    “It was kind of odd: a minivan, only one woman, no kids,” he said.

    Another neighbor, Steve Johnson, said he believed other people lived there as well but that he had no inkling of any wrongdoing.


    “I had no clue that they were growing marijuana there,” he said. “This is a very quiet neighborhood.”


    Federal officials said many of the people tending the grows inside the homes were essentially “indentured servants” forced to remain there and have food and supplies brought to them. Those individuals were offered victim assistance during the raids, and a handful accepted the help, officials said.


    In an unusual twist, no arrests have yet been made as the investigation continues and focuses on the manner in which the homes were purchased and the identity of suspects federal authorities believe handled the transactions.


    McGregor Scott,
    the U.S. attorney for the Sacramento-based Eastern District of California, emphasized that the raids, which used flash-bang grenades to gain access to some homes, are not aimed at restricting California's new state law allowing recreational marijuana use.


    “It absolutely has nothing to do with that,” Scott said. “This is illegal under anybody’s law.”


    Instead, he said, they are targeting a foreign operation that he says has increased crime in neighborhoods where they are based and represents a massive effort to subvert federal marijuana laws.


    Scott said authorities believe 85 percent of the home purchases were handled by a single real estate agent in the Sacramento area but would not disclose a name, saying the investigation is continuing.

    Court filings made late Tuesday spell out details of how authorities believe the operation worked.


    “Since 2014, state and federal law enforcement have investigated an organization of individuals believed to be purchasing homes in the Sacramento region using money from China, converting these residences into indoor marijuana cultivation sites, and then trafficking the processed marijuana to other parts of the country, particularly the Eastern United States,” one home forfeiture court filing states. “Law enforcement has identified a number of common links between the residences converted to indoor marijuana grows, including down payments financed by wires mainly from Fujian Province, in China.”

    Authorities are looking at “one of a handful of common Sacramento realtors,” the documents state, but identify them only as “Person A and Person B.”

    The documents say the buyers and real estate agents used hard-money lenders instead of banks.


    “The buyer generally puts $5,000 to $10,000 down, usually through a domestic wire transfer, a personal check, or a cashier’s check, followed by a second round of domestic wire transfers or cashier’s checks into escrow, often from multiple individuals not listed as co-buyers on any documentation,” the documents say.


    About $6.3 million for escrow payments has flowed into the United States from a series of roughly 125 wire transfers from China, authorities say, each one just under the $50,000 limit Chinese law places on financial transfers out of the country.


    For instance, a home in Wilton that sold for $695,000 as a rental was purchased in part using six wire transfers — each for $49,989 — and a seventh for $14,989 that were sent in a six-day period, officials say.


    The grow houses are in suburban neighborhoods and rural areas; 12 homes alone were found in Valley Springs in Calaveras County in recent months, officials say.


    Over the past two days, agents searched 41 homes in Sacramento, 16 in Elk Grove and others in the surrounding region.


    Some were detected through analysis of utility bills, where grow lights and other equipment boosted electricity consumption 3,000 to 4,000 percent, court documents say.

    Some of the utility bills were paid in cash, further alerting authorities to unusual behavior, documents say.

    Other homes used diesel generators that operated 24 hours a day and were concealed from view of the streets.

    Investigators have been targeting Chinese marijuana growing operations for several years and have indicted a number of suspects, including an Ohio man named Leonard Yang who court documents say was tied to seven Sacramento-area homes.

    “In September 2016, law enforcement executed federal search warrants at the seven residences and seized more than approximately 5,000 marijuana plants,” court documents state. “Each residence contained an active marijuana grow and law enforcement found documents connecting Leonard Yang’s group to the Midwest and Eastern United States, and China.

    “A search of Leonard Yang’s Cadillac uncovered $10,000 in cash, four different garage door openers and multiple house keys, items consistent with law enforcement’s physical surveillance of Leonard Yang’s regular visits to his network of residential grow sites prior to the September 2016 takedown.”


    Yang faces money laundering charges from an August 2017 indictment; that case is pending.


    A plea agreement issued for a co-defendant who was found hiding in the attic of a Wilton-area home linked to Yang describes the evidence authorities seized in a September 2016 raid there.


    “In the main residence eight rooms were converted into marijuana grow rooms with 1,297 plants,” court documents state. “The house had significant electrical, ducting and structural modifications to allow it to be a large scale marijuana grow.

    “In the barn, two areas had been converted into marijuana grow rooms with over 300 plants each, and the upstairs loft was being used to dry, store, trim and process marijuana.”

    The home used so much electricity for the grow operation that it overloaded a SMUD transformer, court documents say, prompting the utility to install a larger capacity transformer at a cost of $4,485.


    The Sacramento region is a hotbed of such activity in part because of the large Chinese and Asian populations here and in the Bay Area, authorities say. Pot-growing operations broken up in the 1990s frequently were traced back to gangs working out of the Bay Area, which used homes in Sacramento because housing prices are much lower in this region.


    Scott said authorities believe the homes the government plans to obtain through forfeiture will later be auctioned off, with the proceeds going to the U.S. government.

    “These people are going to lose hundreds of millions of dollars,” he said.


    https://www.thecannabist.co/2017/12/...nardino/94665/
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  10. #10
    MW
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    Geez, so it's not all Mexican drug cartels!

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