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Alcoholic Beverage and Cannabis Administration
 

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ABCA, MPD Shutter Cannabis Karma, Capitol Budz

Monday, October 21, 2024
Latest enforcement action brings number of illegal cannabis shops padlocked to ten

On October 17, 2024, the Alcoholic Beverage and Cannabis Administration’s (ABCA) Enforcement Division, accompanied by Metropolitan Police Department (MPD) officers, served Closure Orders to the owners of two illegal cannabis businesses: Cannabis Karma at 825 Upshur Street, NW and Capitol Budz at 607 Pennsylvania Ave, SE, Washington DC.

The Alcoholic Beverage and Cannabis (ABC) Board issued the Closure Orders in response to their continued operation as unlicensed cannabis retailers in violation of Cease and Desist Orders.

Due to both businesses posing a credible and imminent danger to public health and safety, ABCA shuttered the businesses, including padlocking the doors.

MPD officers and Investigators from the Violent Crime Suppression Division accompanied ABCA during the business closure and observed illegal products in plain sight inside both stores. A search warrant was obtained and executed at both locations.

At Cannabis Karma, Investigators recovered 31.9 lbs. of THC laced edibles, 4.8 ounces of marijuana, 60 grams of THC wax, and 27 grams of THC vape cartridges.

At Capitol Budz, Investigators recovered 1.5 lbs. of marijuana, 8.7 lbs. of THC laced edibles, 4.9 lbs. of THC vape cartridges, 22.7 lbs. of THC resin, and 1 lb. of entheogenic mushrooms.

The business owners may request a hearing before the ABC Board. Prior to access to the properties being returned to the property owners, the ABC Board may require the property owners to submit for Board approval, a remediation plan addressing how they will actively prevent future illegal cannabis sales on-premises. The ABC Board also has the authority to issue a $10,000 fine to each property owner.

Additionally, on October 13, MPD’s Violent Crimes Suppression Division (VCSD) executed an emergency search warrant at Coupons R Us at 6234 Georgia Avenue, NW. Fourth District officers were first called to the establishment for report of a burglary (CCN: 24158717). Officers observed a large quantity of marijuana products in plain view inside the establishment.

Upon executing the search warrant, VCSD Investigators recovered over 34 lbs. of marijuana, 4.9 lbs. of echogenic mushrooms, 3.9 lbs. of THC resin, and 2 lbs. of THC laced edibles. A Glock 27 semi-automatic handgun and 150 rounds of ammunition was also recovered. No arrests were made, and the investigation is ongoing. The ABCA Board will consider action against this establishment at their next meeting. 

The joint agency enforcement efforts have padlocked ten (10) illegal cannabis businesses since Bill 25-872, the Medical Cannabis Conditional License and Unlicensed Establishment Closure Clarification Emergency Amendment Act of 2024, which granted the agency with new civil enforcement powers, took effect on July 15, 2024.

To date, ABCA has issued 26 Cease and Desist Orders and 84 written warning letters to illegal cannabis businesses that did not apply for a medical cannabis business license during the open application period for unlicensed operators.

Per DC law, unlicensed businesses that applied during that specific open application period are exempt from ABCA enforcement actions until September 30, 2024, or within 180 days of Board approval, whichever date is later.

Following the issuance of a Cease and Desist Order, ABCA sends by certified mail a letter to each property owner where an illegal cannabis business is operating advising them that they may personally be subject to civil and criminal penalties for failure to immediately cease all illegal cannabis activity.

Questions regarding:

  • Medical cannabis licensing and enforcement should be directed to ABCA at [email protected].
  • Illegal product seizure and arrests should be directed to MPD at [email protected].