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Monday, February 22, 2010

NEWS: Owner of LA pot club charged with money laundering

LOS ANGELES—The owner of a Los Angeles medical marijuana dispensary has been charged with money laundering and illegal pot sales stemming from his arrest last week.

Jeffrey Joseph faces 24 counts in a criminal complaint filed Monday. Bail had initially been set at $350,000. It wasn't immediately known if he had retained an attorney. He was expected to appear in court Monday.

Joseph ran Organica, a pot clinic that has been targeted by repeated police investigations. Authorities say people associated with Organica passed out flyers advertising the dispensary near a high school last year and some students apparently purchased from the outlet.

While pot remains illegal under federal law, California allows pot for medicinal use.

The city attorney's office filed a lawsuit against Organica last week.

Source: The Associated Press