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Monday, July 12, 2010

NEWS: Defendants charged in marijuana ring arraigned

FEDERAL COURT — Eleven defendants arrested on Friday as part of a large marijuana selling ring that used a medical marijuana collective in Pacific Beach appeared in federal court Monday.

U.S. Magistrate Judge Anthony Battaglia set bond for each of the defendants, ranging from $25,000 to $100,000. They face charges of conspiracy to distribute and manufacture marijuana and money laundering.

Assistant U.S. Attorney Sherri Walker Hobson outlined the role each defendant played. Some were runners for drug shipments, while some were involved in money laundering, she said. One defendant, Marco Luis, is a real estate agent and mortgage broker. He is accused of helping fraudulently purchase properties with the drug sales money, including a $2 million home in Rancho Santa Fe and 37 acres near Palomar Mountain.

The alleged leader of the network, Joshua John Hester, was not among the 11 in court. He was arrested by federal agents in Los Angeles on Friday morning. He appeared in court there in the afternoon and was ordered to be detained and no bond was set. He is expected to be sent to San Diego this week.

Hobson said that Hester orchestrated sales through the Green Kross Collective and Downtown Kush Lounge, both of which were operating as medical marijuana dispensaries in San Diego under state law. Prosecutors allege that Hester has used California’s medical marijuana law as a shield to facilitate illegal drug sales since 2009.

Source: San Diego Union-Tribune

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