Allen police executed several search and seizure warrants at legal cannabis stores in the area on Tuesday.
San Marcos-based attorney David Sergi, who represents at least eight of the businesses targeted by police, said his clients are accused of manufacturing and distributing illegal tetrahydrocannabinol, or THC, products.
Allen Police confirmed that the agency, with assistance from the Drug Enforcement Administration and the Collin County Sheriff’s Office, executed search and seizure warrants at nine businesses in the city.
“The warrants were obtained and executed following a thorough investigation into alleged illegal activities related to the sale of products containing more than 0.3% THC, the psychoactive component of cannabis. Products previously sold at these nine locations were found to contain THC levels ranging from 7% to 78%,” police said in a written statement.
Authorities said they had arrested five people and “confiscated products.”
Sergi said his clients were operating legally. He said authorities destroyed products and confiscated cash register systems and records, as well as some personal computers belonging to employees of some of his clients.
The police action in Allen was an “escalation” of tactics he has seen in other parts of the state to intimidate businesses selling legal cannabis products, Sergi said.
“Under Texas law, there is a right way and a wrong way to handle products that may not be compliant, and they have taken completely the wrong path and will be held accountable,” Sergi said.
In May, several stores that legally sell cannabinoid products in the city received a letter signed by Allen Police Chief Steve Dye warning them that the department had identified CBD and vape shops that were selling “illegal THC products.” The letter asked the stores to ensure they were not selling products with illegal THC levels.
“You risk having your license revoked by the city,” the letter states. “Because such products are classified as Penalty Group 2 substances due to their THC content, you and your employees may also face potential criminal consequences for manufacturing or delivering a controlled substance.”
In July, the DEA asked many companies that sold legal hemp products to turn over their records, Sergi said. Shortly afterward, some stores formed the Allen Hemp Coalition and hired Sergi to represent them.
A federal judge lifted the DEA subpoena that same month, he said.
