United States Attorney Benjamin B. Wagner
Eastern District of California
Sacramento Marijuana Dispensary Operator Pleads Guilty to Federal Drug Charges
|FOR IMMEDIATE RELEASE||
Friday, October 26, 2012
Docket: # 2:11-CR-428 GEB
SACRAMENTO, Calif. —Bryan Smith, 28, of Elk Grove, pleaded guilty today to federal drug charges stemming from owning and operating the R & R Wellness marijuana dispensary formerly located at 75 Quita Court in Sacramento and growing marijuana related to the dispensary operation. According to the terms of the plea agreement, Smith agreed to a sentence of not less than 5 years in prison and not more than 7 years and 3 months in prison. His sentencing date was scheduled for January 25, 2013, at 9:00 a.m.
Smith is the last defendant to plead guilty in the case. Co-defendants Daniel Goldsmith, 27, of Galt and Elk Grove; Robert Klaus 36, of San Diego; Ryder Phillips 27, of Galt; Kelly Smith 55, of Elk Grove; and Bruce Goldsmith 61, of Galt, had previously pleaded guilty to federal drug charges. All are pending sentencing.
According to the court filings, on February 24, 2011, a state search warrant was executed at the former residence of Goldsmith in Elk Grove. Inside the residence, law enforcement officers found an indoor marijuana growing operation containing 317 plants and nine pounds of processed marijuana in two upstairs bedrooms. Three additional rooms in the house contained grow lights and ballasts and appeared to be in the process of being set up to grow marijuana. An electrical bypass to facilitate the theft of power for the growing operation was found in the garage and fingerprints of codefendant Kelly Smith (father of Bryan Smith) were located on items in the area where the electrical bypass was located. The grow operation caused approximately $25,000 in damage to the leased residence. Text messages found on Goldsmith’s cell phone, post-arrest statements, and testimony of various witnesses demonstrated that Goldsmith was partnered with Bryan Smith in the marijuana grow and that at least part of the marijuana grown at this location had gone to, and was allocated to be sold at, R & R Wellness, a marijuana dispensary owned and operated by Bryan Smith.
On June 16, 2011, state search warrants were served at three locations. At R & R Wellness, approximately 139 pounds of processed marijuana 1.2 pounds of hashish, and $1,408 in cash were found and seized along with other marijuana-laced food items.
At a warehouse in Sacramento, agents found two Allied storage containers and a separately built larger plywood room; all were set up to grow marijuana. A total of 401 growing marijuana plants were found. SMUD records showed that Bryan Smith was the electricity subscriber for the warehouse, with a start date of March 28, 2011, and surveillance agents had seen him travel to and from that warehouse prior to the search.
At Bryan Smith’s residence in Elk Grove, approximately $256,476 in cash was found in the master bedroom closet, along with a shotgun and 9 mm pistol. Law enforcement agents found a backpack containing approximately $16,733 in cash inside the defendant’s pickup truck.
The case was investigated by the Elk Grove Police Department with assistance from the Sacramento HIDTA Task Force. Assistant U.S. Attorneys Richard Bender and Olusere Olowoyeye are prosecuting the case.
According to U.S. Attorney Benjamin B. Wagner, this case is yet another example of California law being subverted into a scheme to make large profits for the operator of the claimed “nonprofit” medical marijuana dispensary.