Pubdate: Fri, 13 Jul 2012
Source: San Francisco Chronicle (CA)
Copyright: 2012 Hearst Communications Inc.
Contact: http://www.sfgate.com/chronicle/submissions/#1
Website: http://www.sfgate.com/chronicle/
Details: http://www.mapinc.org/media/388
Author: Kevin Fagan

POT CLUB BATTLES FED CRACKDOWN

U. S. Attorney: East Oakland Center a 'Superstore'

Harborside Health Center's co-founder said Thursday that he will 
fight the federal government's effort to shut down his sprawling 
medical cannabis complex in East Oakland.

And if he loses, he'll keep the operation going in any way possible, 
Stephen DeAngelo said.

"We have no intention of closing our doors," DeAngelo said at a news 
conference at Oakland City Hall, where he was joined by 50 community 
leaders, Harborside patients and other backers. "We will never 
abandon our patients."

U.S. Attorney Melinda Haag filed a federal court complaint Sunday 
alleging that the $22 million-a-year medical pot dispensary violates 
U.S. law prohibiting marijuana distribution. A court notice was 
posted on Harborside's door Wednesday announcing asset forfeiture proceedings.

A similar notice was sent to Harborside's smaller sister dispensary 
in San Jose.

The complaint is the latest shot in a campaign Haag and other U.S. 
attorneys have waged since last fall against medical marijuana 
operations in California. She says any activity that goes beyond 
small medical marijuana exchanges violates the spirit of the state 
law that voters passed in 1996 authorizing pot use for medicinal purposes.

Harborside, Haag said in a statement Wednesday, is among 
"superstores" that violate the spirit of the law.

"The larger the operation, the greater the likelihood that there will 
be abuse of the state's medical marijuana law, and marijuana in the 
hands of individuals who do not have a demonstrated medical need," Haag said.

The federal complaint filed Sunday makes no mention of the state law, 
however. It relies on Harborside's alleged violation of federal drug 
law in asserting the government's right to seize the property at 1840 
Embarcadero, along the Oakland Estuary.

Ana Chretian owns the property and leases space to Harborside. She is 
also president of ABC Security, which is on the same plot of land, 
and her attorney Geoff Spellberg said the federal forfeiture action 
would shut down her business. ABC employs about 250 people.

"I have no position on the rightfulness or wrongfulness of medical 
marijuana dispensaries, but the strategy the federal government is 
employing here is wrong," Spellberg said. "We'll be reaching out to 
the federal government for another solution that is not so contentious."

Haag spokesman Jack Gillund had no comment on DeAngelo's resistance 
or on any timeline for federal action against the dispensary. 
Harborside was still open and doing business Thursday.

DeAngelo said the only reason his dispensary is so big is that "we do 
such a good job." With 108,000 users, who must get a doctor's 
certificate to purchase marijuana, Harborside is the biggest medical 
cannabis operation in the nation.

By offering an array of medical marijuana products authorized under 
state law, DeAngelo said, "We have deprived street gangs and cartels 
of hundreds of millions of dollars ... created hundreds of millions 
of dollars in revenue and improved safety."

Among the customers joining DeAngelo on Thursday was Jason David of 
Modesto, who tearfully explained that Harborside's cannabis is the 
only medicine that stemmed the pain and seizures of his 5-year-old 
son, Jayden, who suffers from a rare form of epilepsy.

City Attorney Barbara Parker, a former assistant U.S. attorney, 
released a statement calling Haag's action "a tragic waste" of 
resources better used to crack down on violent crime.

City Councilwoman Rebecca Kaplan noted that if Harborside closes, the 
cash-strapped city will lose $1.1 million in annual taxes from the 
dispensary, and its more than 100 employees will become unemployed.
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MAP posted-by: Jay Bergstrom