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Feds Bust G3 Holistic Marijuana Dispensary, Ignore Calif. State Law

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On November 1, federal agents raided G3 Holistic, Inc.’s three locations in Colton, Upland, and Moreno Valley, CA as well as the Ontario warehouse where the medical cannabis was grown. 

That same day, the homes of G3′s president, Aaron Sandusky, and its chief financial officer, John Nuckolls, were also raided on the claim that Sandusky has been illegally selling cannabis to the general public.

In an affidavit for the search warrant, DEA Special Agent Patrick Kelly stated that he “believe[s] that the G3 stores operate to make a profit and attempt to disguise the breadth of their criminal activity by claiming that they cater exclusively to persons suffering from medical illnesses, when in fact persons without any medical condition can purchase marijuana at these retail establishments.”

He also stated that several undercover officers with phony recommendations were able to purchase cannabis at each of G3′s three locations.

Sandusky said officials confiscated up to $30,000 from his stores and detained him for more than seven hours in handcuffs at the warehouse, where they took all of the equipment and destroyed his plants. G3 reportedly serves more than 17,000 patients in Colton and Upland combined (statistics for the Moreno Valley location are unavailable at this time).

These raids came only a day before Sandusky was due in court to continue his fight to keep his dispensaries open. In June of this year he filed a stay against the city of Upland’s August 2010 injunction against G3 and is appealing the city’s prohibitions of medical cannabis dispensaries. A stay was granted on June 20, allowing the cooperative to operate until Sandusky’s appeal was heard on November 2. The appeal was held as scheduled and the 4th District Court of Appeals has 90 days from that date to hand down their decision.

The city of Moreno Valley is also coming down hard on G3, utilizing a three year old ordinance that bans collectives and issuing $1,000 daily fines for running a business without a valid license or required certificate of occupancy. Additionally, the city attorney’s office has two pending misdemeanor criminal complaints related to code violations. The trial for these charges is set to begin November 14.


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