HARRIS COUNTY, Texas (KTRK) — THC Club, a cannabis company with 18 locations across Harris County, was allegedly raided for selling real marijuana and money laundering.
The bust was a result of a joint undercover operation between Constable Precinct 4 and 5.
According to court documents, nine people are facing charges including the owner, managers, and investors.
On Sept. 25, investigators confiscated nearly 30 pounds of cannabis products from THC club locations.
The company’s website claims every product they sell is legal under Texas’s farm bill.
THC Club advertises themselves as Houston’s number one spot for recreational marijuana.
They operate 18 locations across Harris County, from the Galleria to Cypress.
ABC13 visited some of those locations which appear to be closed since they were raided by law enforcement.
According to a lengthy charging document, the investigation began in January. Undercover detectives with Harris County Constable Precinct 5 allegedly made 22 purchases while entering all 18 locations.
The documents allege testing on the products came back positive for marijuana. Investigators also allege $4.5 million in illegal proceeds were generated through money laundering over a four-year period.
In a statement to ABC13, the company’s attorney said:
“The THC Club has operated legally and openly since its inception. Its owners have appeared in the media, testified in front of the legislature, and not a single one of them has broken any laws. This allegation is based on a fundamental misunderstanding of the law and the facts, and we look forward to a quick resolution in court.”
In Texas, some types of cannabis products are legal, if they contain zero-point-three percent or less THC – the chemical that gets you high.
On the company’s website, it says it sells products that are legal in Texas, but police said the testing they did shows otherwise.
So-called “legal marijuana” is a controversial and confusing issue in Texas with the state Supreme Court likely to rule on its legality in the future.
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