Modesto medical-marijuana operators convicted in federal case




(05-16) 11:07 PDT FRESNO -- Two Modesto men are facing mandatory 20-year prison sentences after being convicted of running a medical-marijuana operation that federal prosecutors labeled a criminal enterprise, authorities said today.
Luke Anthony Scarmazzo, 28, and Ricardo Ruiz Montes, 28, were convicted by a federal jury Fresno on Thursday of conducting a continuing criminal enterprise, growing marijuana and possessing marijuana with the intent to distribute.
The conviction for running a criminal enterprise carries a mandatory sentence of at least 20 years. U.S. District Judge Oliver Wanger is to sentence both men Aug. 4.
Federal officials said the case sends a message to marijuana growers and dealers who believe they are shielded from prosecution under the California law legalizing medical marijuana use.
"Scarmazzo and Montes made millions by exploiting and hiding behind California's medical marijuana law," said McGregor Scott, U.S. attorney in Sacramento. "In this case, there was no conflict between state and federal law, as their conduct was illegal under both.
"California's medical marijuana law clearly sets out that making a profit selling marijuana is illegal," Scott said. "These two set out to make as much money as they could as drug dealers, plain and simple."
Scarmazzo and Montes obtained a business license from the city of Modesto by falsely representing that their California Healthcare Collective would engage in "retail sales of natural health-care products," authorities said. In reality, they limited their business to marijuana sales, authorities said.
The collective filed papers with Modesto stating that it earned more than $4.5 million while operating in the Central Valley city from 2004 to 2006, investigators said. But the evidence at trial showed that the defendants actually generated more than $9 million in sales.
Much of the money was used for personal purchases, such as Scarmazzo's $184,000 Mercedes-Benz, prosecutors said.
The jury found the men not guilty of possessing firearms in furtherance of a drug trafficking crimes. The panel could not reach a verdict on whether the men had conspired to distribute marijuana and possess marijuana with the intent to distribute.
Federal prosecutors are seeking forfeiture of more than $200,000 in seized assets.
E-mail Henry K. Lee at hlee@sfchronicle.com.

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"They must find it difficult...Those who have taken authority as the truth, rather than the truth as authority"

Sounds like they had it coming to them... know the laws and abide by them, don't take the leniency for granted. Besides, it sounds like they were selling to anyone/everyone... too many details left out. Anyone who buys a $184,000 dollar Mercedes just by selling cannabis is an idiot and really deserves to get caught.

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Alaskan grown...

Medical Marijuana should not be used to get rich off of the back's of others.

I have no sympathy for them.

Whats it about ?? Making a pile?? or helping the sick??

And how much of those millions do you think went to activist organizations? I'd bet none.

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Alaskan grown...

true that, just makes it worse for all the other growers. They basically handed the anti-erb self apointed moral dictators a huge propaganda win. Anti american motherfuckers

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"They must find it difficult...Those who have taken authority as the truth, rather than the truth as authority"

They pissed off the wrong people. Have you guys seen the music video these guys made? They were flaunting their cash around and bragging about all the weed they sold, taunting the DEA and such. Some of music video actually took place in a mock courtroom where they were on trial!! Don't get me wrong, it is terrible what happened to these guys but if what you're doing is illegal in the eyes of the gov't don't throw that shit in their face!

This is the video? I didn't know they were "rappers" lol.

YouTube - Kraz-Business Man By Luke Scarmazzo

Even worse.

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Alaskan grown...

yup that's the one!

that fool was dumb, man what a moron. I guess he will be givin out the dick suckins now.

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"They must find it difficult...Those who have taken authority as the truth, rather than the truth as authority"

Is this really one of the guys? I like when he yells "fuck the feds" in his video, and then says " I didnt know they would be coming"
What a schmuck. You would think with all that weed, he could afford some food and a haircut. drivin a $180,000 benzo. Who does this guy think he is, OG bobby johnson? I forgot, He's a "buisness man"