A California Sheriff Remains Free To Rob Armored Cars Carrying Money From State-Licensed Marijuana Businesses

A federal judge this week declined to issue a temporary restraining order (TRO) against a California sheriff who used civil forfeiture to rob armored cars carrying money earned by state-licensed marijuana businesses. In his ruling, U.S. District Judge John Holcomb said Empyreal Logistics, a Pennsylvania-based company that transports cash between businesses and banks, “may very well have an excellent case on the merits” but had failed to meet “the high burden” for a TRO.

San Bernardino County sheriff’s deputies stopped Empyreal vans three times in November, December, and January. They seized cash during two of the stops, making off with a total of more than $1 million, which was transferred to the FBI so the Justice Department could pursue forfeiture under federal law. If the government prevails in those forfeiture proceedings, the sheriff’s department will get to keep up to 80 percent of the money under the Justice Department’s “equitable sharing” program. The earnings of state-licensed marijuana suppliers are not subject to forfeiture under California law.

Empyreal, which is represented by the Institute for Justice, argues that San Bernardino County Sheriff Shannon Dicus has no authority to seize money from businesses that are complying with state law, that the van searches violated the Fourth Amendment, and that the financial motive for the stops makes them inconsistent with due process. In addition to Dicus, Empyreal sued the Justice Department, Attorney General Merrick Garland, the FBI, FBI Director Christopher Wray, the head of the FBI’s Los Angeles Field Office, the Drug Enforcement Administration (DEA), and DEA Administrator Anne Milgram. The company argues that federal officials, by collaborating with Dicus, are violating a congressional spending rider that bars the Justice Department (which includes the FBI and the DEA) from interfering with the implementation of state medical marijuana laws.

Regarding that last claim, Holcomb said the evidence presented so far was not sufficient to establish that Empyreal and its clients were operating in accordance with California laws allowing medical use of marijuana. The company says three of the four businesses whose money was seized on November 16 had medical marijuana licenses. It says all of the money seized on December 9 came from such businesses.= – READ MORE