Five Larimer County Residents Sentenced for Role in Synthetic Marijuana Distribution Ring

On July 19, 2013, HSI agents and Northern Colorado Task Force officers executed search warrants at seven locations, including residences and businesses in Fort Collins.  During the course of executing those warrants, agents and officers seized: money from several bank accounts used by the defendants (amounts to be determined), $26,000 in cash, 75 pounds of Spice and the chemicals and dry products to make Spice, thousands of packaging units of Spice for later sale, and several firearms.  Spice, the street name, is a mixture of substances containing detectable amounts of XLR-11 and PB-22, also known as synthetic cannabinoid, a Schedule I controlled substance or considered to be analogues to controlled substances.  Analogues are chemicals that are substantially similar to the chemical structure of a controlled substance and have stimulant, depressant, or hallucinogenic effects on the central nervous system.   These products posed an imminent hazard to the public since many of these products were mislabeled, marketed, or sold openly as “bath salts,” “plant food,” “glass cleaner,” as in this case “tree mulch,” or legal alternatives to controlled substances that nevertheless caused people to hallucinate, overdose, and be hospitalized. 

During the spring of 2013, the defendants engaged in knowingly and intentionally possessing with intent to manufacture and distribute mixtures or substances containing synthetic cannabinoid controlled substance.  The investigation revealed that Pim/Le/Barnes Organization would order XLR-11 and PB-22, which is a white powder, from China.  The organization would have the powder delivered from China to New York City.  From there, the illegal substances were sent from New York to Fort Collins.  The organization also had a green leafy type substance sent to Fort Collins from San Antonio, Texas.  In Fort Collins, Barnes, Le and the Pims took XLR-11 and PB-22 and manufactured them into spice that can cause death to humans.   The defendants in this case took the chemicals and mixed them in a solvent which was eventually sprayed onto a fake plant product.   The crude way in which the defendants produced the spice in this case is a danger; if the fake cannabinoid is sprayed unevenly, it can create hot spots where the concentration of the chemical is dangerously high.  They would then package the product and either sell it to smoke shops in Colorado or send it other smoke shops throughout the United States.   The cost of 1.5 gram packets would be $10, and the cost for 3 gram packets would be $20.

The chemicals used by the defendant are manufactured in China, with no Food and Drug Administration or other type of oversight.  It can contain substances that are dangerous to an individuals’ health.  Some purchase Spice because they cannot purchase marijuana.  Both substances are dangerous to an individual’s health, which is why XLR-11 and PB-22, similar to marijuana are now both listed as Schedule I Controlled Substances, which are banned from use.

As recent law enforcement investigations and media publications have shown, the rise of Spice continues to grow.  Drug dealers are changing the chemical makeup of Spice faster to change than the laws are changing.  The use of synthetic drugs such as the ones created by the defendants in this case are causing deaths throughout the country, harming individuals on a daily basis, and have a high cost on emergency health and long term care. U.S. emergency rooms saw 11,406 visits involving synthetic cannabinoids in 2010; but this number as large as it is may be limited since hospitals are lacking in their abilities to screen for substances.  In 2013, almost 30 percent of 10^th graders tried marijuana.  The far more dangerous use of synthetic cannabis was second only to marijuana, with 7.4 percent of 10^th graders admitting to using it. As shown in this case and by law enforcement trying to prevent further harm from synthetics, the system of declaring a new substance illegal isn’t equipped to handle the synthetics problem, because the possibilities of switching one small atom to create a new substance with the same effects are quick, easy, and literally endless.  Another danger is the cost of the synthetic drugs are much lower than marijuana, making it more of a financially feasible product regardless of its deadly nature.  An ounce of marijuana sells for $300.00 to $500.00 where a package of spice goes for $5.00 to $20.00. 

“The resolution of this case is the end to a national drug organization that was producing and disturbing dangerous spice in Colorado and throughout the United States,” said U.S. Attorney John Walsh.  “Colorado has been on the cutting edge of Spice related prosecutions, and thanks to HSI and the Northern Colorado Drug Task Force, five individuals importing and manufacturing this dangerous drug are now in prison as a consequence to their criminal actions.”

"These prison sentences represent the end of a lengthy investigation to dismantle this drug trafficking organization by our HSI Special Agents working together with our fellow law enforcement officers,” said Special Agent in Charge David A. Thompson, HSI Denver.  “This law enforcement partnership effectively removed dangerous drugs from our local communities, and the criminals responsible for trafficking them.”

This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Northern Colorado Drug Task Force.  The Northern Colorado Drug Task Force is made up of the Fort Collins Police Department, the Loveland Police Department and Colorado Adult Parole.

The defendants were prosecuted by Assistant U.S. Attorney Jeremy Sibert.