Pubdate: Sat, 11 Dec 2010
Source: Morgan Hill Times (CA)
Copyright: 2010 Morgan Hill Times
Contact:  http://morganhilltimes.com/
Details: http://www.mapinc.org/media/3809
Author: Lindsay Bryant
Bookmark: http://www.mapinc.org/find?115 (Cannabis - California)
Bookmark: http://www.mapinc.org/mmj.htm (Cannabis - Medicinal)

MEDILEAF ATTORNEY: INVESTIGATION JUST AN EFFORT TO COLLECT SEIZURE MONEY

The raid of MediLeaf pot collectives in Morgan Hill, Gilroy and San 
Jose Thursday has left local medicinal marijuana supporters and 
MediLeaf's attorney questioning the motives of Santa Clara County law 
enforcement in their effort to pursue alleged money laundering and 
illegal sales of marijuana by MediLeaf.

The attorney representing MediLeaf and its founder Goyoko "Batzi" 
Kuburovich, Jim Roberts, said none of the seven people implicated in 
Thursday's raid have been charged with any crimes. In fact, Roberts 
said, Kuburovich wasn't even questioned Thursday despite Roberts 
calling to arrange a meeting with the County Special Enforcement Team.

Danielle Ayers, the commander of C-Set - the drug task force that 
receives help from other agencies like the Gilroy Police Department 
and California Highway Patrol - has not returned phone calls from the 
Times. Roberts said there is no probable cause to arrest Kuburovich.

The eight-month investigation broke Thursday when more than 50 law 
enforcement officers raided MediLeaf stores in San Jose, Morgan Hill 
and Gilroy, and the homes of several people linked to MediLeaf were 
searched and carloads of items were taken for investigation.

Roberts has been representing MediLeaf for about a year since its 
directors were involved in litigation with the city of Gilroy after 
their shop at 1321 First St. was forced to close Aug. 9 when Superior 
Court Judge Kevin McKenney upheld the city's claim that MediLeaf was 
operating illegally because it did not have a business license.

The District Attorney's Office has not filed a case against MediLeaf 
related to Thursday's operation and spokeswoman Amy Cornell said 
because no charges have been filed, there is no case for the DA's 
Office to review.

During the raid, law enforcement officers were searching for 
marijuana, scales, growing equipment, drug transactions ledgers, 
firearms, cell phones, computers, financial records, money and items 
associated with the illegal sale of marijuana. According to seizure 
laws and the process of "assets forfeiture" as regulated by the U.S. 
government, in California 70 percent of seized assets during criminal 
seizures are returned to the county law enforcement agency.

"It's a tainted process ... they're attempting to make a profit to 
the extent it contaminates the process," Roberts said. "It's a sad 
statement that one small organization is seeking to make a profit on 
seizures and it's contributing to the black market in turn. No other 
counties are doing this, it's an aberrational group in California," he said.

On Thursday, two MediLeaf collectives in San Jose were shut down by 
the raid and two people were arrested, though it's unclear if they 
were charged with any crimes.

According to KTVU, Kuburovich told pot club owners that he was going 
to turn himself in though he maintained his innocence in being 
involved in illegal activity related to the selling of pot to people 
without medical marijuana prescriptions.

Kris Hermes, a spokesman for the grass-roots organization Americans 
for Safe Access based out of Oakland, said ASA is not formally 
representing MediLeaf but is behind their efforts.

"Of course we're supporting them in a political way. We support the 
dispensaries operating in the San Jose area to continue to operate 
without law enforcement interfering," Hermes said.

Hermes said raids happen routinely across California, though they've 
decreased recently since the Obama administration issued a memorandum 
in October that it will not seek to arrest medical marijuana users 
and suppliers "as long as they conform to state laws"; the Justice 
Department "deprioritized" federal enforcement, saying it wasn't a 
good use of prosecutor's time.

"That has taken the wind out of their sails to disrupt the legal, 
local distribution of medicinal marijuana," Hermes said.

***

Police executed search warrants starting Thursday morning, including 
a search of the three-bedroom home of MediLeaf's co-director Neil 
Forrest at 2135 Darnis Circle in Morgan Hill about 2 p.m. Seven other 
residences and the MediLeaf offices in San Jose, Morgan Hill and 
Gilroy were searched Thursday for marijuana, scales, growing 
equipment, drug transactions ledgers, firearms, cell phones, 
computers, financial records, money and items associated with the 
illegal sale of marijuana. The search warrant was signed by Superior 
Court Judge Philip PennyPacker at 1:29 a.m. Dec. 1.

Along with searching Forrest's home, law enforcement issued search 
warrants at the home of Bruce Ziegelman, 53, on the 1500 block of 
Majorca Drive in Morgan Hill, 7170 Eagle Ridge Court in Gilroy, and 
three MediLeaf stores: two in San Jose on Meridian Avenue and South 
10th Street, and the now-defunct Gilroy store a 1321 First St.

The temporary South County headquarters for MediLeaf was searched 
since it moved to Morgan Hill into UR Health and Wellness Center, at 
16430 Monterey Road.

Thursday afternoon five camouflaged police, including undercover 
officers, swarmed outside of 7170 Eagle Ridge Court in Gilroy. A man 
dressed in civilian clothing and another dressed in camouflage 
brought about 10 white cardboard boxes outside through the front of 
the house around 3:40 p.m., shortly followed by another carrying two 
shotguns out of the home.

GPD Investigator Geoff Guerin was present and said investigators had 
been at the residence since noon.

Several neighbors came out of their homes to see what was going on.

"I've never seen anything unusual. I've heard things, though. I've 
heard from the neighbors they could smell marijuana, that the people 
living there were smoking it late at night," said a woman named Mary 
who lives in the neighborhood.

The search warrant was obtained by the Times Thursday. Law 
enforcement has refused to release the names of the six people who 
were being sought: Medileaf co-director Goyoko "Batzi" Kuburovich, 
50, Patricia Kuburovich, 46, Kristel Kuburovich, 21, Neil Forrest, 
58, Ziegelman and Kevin Keifer, 54. According to Gilroy Police 
Department Sgt. Chad Gallicinao, as of Thursday at 4 p.m. no one has 
been booked into county jail. Gallicinao said the investigation is 
active and ongoing.

The money laundering investigation is directed at friends and family 
who were selling marijuana to customers who had no medical ailments 
and laundered payment for their personal benefit.

At Darnis Circle, two MHPD police cars and a California Highway 
Patrol vehicle were parked outside Forrest's home that he shares with 
two other housemates. One housemate, who declined to give his name, 
said Forrest, 58, has lived there for more than 15 years and that he 
never saw or smelled marijuana in the house. Outside Forrest's home 
sat his gray Datsun pick-up truck with dozens of MediLeaf business 
cards strewn on the passenger seat and white campaign buttons that 
read "I (heart) MediLeaf."

When asked if marijuana was growing anywhere in the house, his 
housemate said, "Let me be clear about this, hell no," he said.

Forrest is co-director of the pot club MediLeaf with Batzi 
Kuburovich, who answered a call by the Times to his cell phone 
Thursday about 2 p.m.

"I can't talk to you. I wish you luck," said Kuburovich, who was 
detained by law enforcement as part of their investigation. He said 
he had not talked to Forrest Thursday.

According to a press release from the Gilroy Police Department, the 
investigation revealed probable cause to "believe the MediLeaf stores 
to include their owners and limited family members were involved in 
the illegal sales of marijuana and (illegally) laundered the proceeds 
through financial institutions."

MediLeaf opened Nov. 9 2009 in Gilroy without a business license at 
1321 First St. It was forced to close Aug. 9 after Superior Court 
Judge Kevin McKenney issued an eight-page July 20 order upholding the 
city's claim that MediLeaf was operating illegally following a Gilroy 
lawsuit. Forrest and Kuburovich claim 4,000 members and MediLeaf 
offers 20 varieties of marijuana.

At least one business owner refuses to believe Forrest and Kuburovich 
were involved in any illegal activity with MediLeaf.

"They're really good people. I've talked with them many times and 
they're good people," said Hank Provost, the owner of Simply Romance, 
an adult store at 1329 1st St., a few doors down from the former 
MediLeaf store in Gilroy.

When Provost heard that Forrest and Kuburovich might be implicated in 
a crimes of money laundering and illegally selling marijuana, he 
said, "I seriously doubt that. Batzi is just a really good guy. From 
what I understand his father was ill and medical marijuana was 
helping him. He passed away and (Kuburovich) wanted to make it 
available to others," Provost said.

The foot traffic MediLeaf was bringing to the area was good for 
Provost and other business owners, too.

"We've all talked about here, and we consider MediLeaf a positive 
thing not a negative thing. Business has clearly dropped off since 
they're not open anymore," he said. "Since California legalized 
medicinal marijuana, I don't see the problem, it's a matter of an 
individual city ... letting things be."

The law enforcement agent who answered the front door at Forrest's 
home about 2 p.m. Thursday said he was working undercover and that 
the search was part of a larger investigation.

GPD say the involved parties attempted to hide illegal activities 
"under the umbrella of California's legitimate marijuana laws, which 
protect those who use marijuana for medicinal purposes."

At about 1:35 p.m. Thursday, three law enforcement cruisers were 
reported to be pulling away at MediLeaf's closed Gilroy location.

A public relations firm in Campbell, Three Girls Media and Marketing, 
sent an e-mail to South Valley Newspapers stating MediLeaf's two 
location in San Jose - at 2129 10th St. and 1340 Meridian Ave. - were 
also being raided by law enforcement.

Attorneys for MediLeaf filed a notice to appeal the prohibitory 
injunction the day after McKenney's Santa Clara County court decision 
and requested the dispensary be allowed to operate during the appeals 
process. McKenney denied MediLeaf's request.

MediLeaf then continued its fight with Gilroy on whether the medical 
dispensary can operate in the city by filing a Nov. 10 appeal.

MediLeaf attorneys filed an opening brief to begin the appeals 
process - on a prohibitory injunction resulting from a lawsuit 
brought against it by the Gilroy - with the Santa Clara County 
district court of appeals.

As of September 2010, Berliner Cohen billed the city a total of 
$175,529 for MediLeaf litigation, said Gilroy Finance Director 
Christina Turner.

Anyone who has information regarding these illegal activities can 
contact officer Geoff Guerin at 408-846-0350. Parties wishing to 
remain anonymous may call WeTip at 1-800-782-7463. 
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MAP posted-by: Jay Bergstrom