SALEM, Ore. — Federal officials are investigating a marijuana-processing facility in Oregon after an explosion there injured a man who was previously convicted in a money-laundering operation linked to pot-trafficking.
The probe is a fairly rare instance in which U.S. officials are investigating a marijuana case in a state where pot is legal. Federal enforcement of U.S. laws that ban possession and distribution of marijuana is restricted by the U.S. Justice Department, but is permitted when marijuana is being distributed to other states and in a few other situations.
“We have a large amount of marijuana grows,” Capt. Doug Skaggs of the Cottage Grove Police Department said in a telephone interview. “We’re not different than everyone else (in Oregon).”
Skaggs said that due to manpower issues, the Police Department often liaises with the DEA.
A report by The Associated Press in August showed that large amounts of marijuana are being smuggled out of Oregon, although what percent of the tons grown in the state is trafficked is hotly debated. Local law enforcement in Oregon is often too strapped for personnel and funds, and is busy with other investigations and mindful of restrictions against searches without cause, to figure out which grows are registered and legal and which are illegal.
When DEA agent Sean Cummings got a warrant the day after the explosion and searched the building, he found 728 growing pot plants, 1,200 pounds of marijuana and marijuana extracts, according to federal court documents. That address was not authorized by Oregon authorities to grow or process marijuana, the court documents say.
Scully and two co-defendants in that money-laundering case earned over $1 million, authorities alleged. A coffee kiosk, Blac Sheep Coffee, that Scully owned was used to launder the proceeds.
U.S. Attorney Billy Williams had recommended imprisonment of 21 months, followed by three years of supervised release. In the end, Scully got 90 days, had to pay restitution of $4,800 and forfeited several rifles and pistols, and four expensive Swiss watches, among other items.
Kevin Sonoff, spokesman for the U.S. Attorney’s Office in Portland, said he cannot comment on active investigations.