By Kathleen McLean
A story broke last week on an illegal hash oil operation, which lead to a total of six people being arrested, one of which is a lawyer that represents clients right here in San Diego’s cannabis community. The reports from local news outlets have been brief and without a clear picture of what hash oil is, the year-long investigation of Med-West, and it’s CEO James Slatic.
Hash oil by definition is an oleoresin obtained by the extraction of marijuana or hashish. This oil is what’s used in the ever so popular vape pens and for “dabbing.” The THC content in hash oil varies, some test at 52% and others can reach up to 90% concentrate. The process of extraction will decide if it’s a clear amber solid called “shatter,” a sticky semisolid called “wax,” or a brittle honeycombed solid called “honeycomb wax.” The extraction process is extremely dangerous. The solvents used to extract THC are flammable or combustible and have resulted in explosions, fires, severe injuries, and deaths.
James Slatic is the CEO of Med-West distribution. In January of 2016, Med-West was raided, and law enforcement seized computers, hard drives, files, taxes, patient records, and cash. His family’s bank accounts were also frozen. Slatic’s lawyers have had to fight to have his money returned to him. On May 8, Superior Court Judge Tamilia E. Ipema issued an order to District Attorney Bonnie Dumanis to return more than $100,000 seized from Slatic and his family’s bank accounts because no one had yet been charged with a crime. Last fall, Governor Jerry Brown made it more difficult for California police agencies to keep seized cash. In state cases, cash amounts of less than $40,000 can only be forfeited with an accompanying conviction.
On May 24, felony charges were filed against James Slatic, Med-West CEO, Erin McElfresh, Med-West attorney, Matthew Allen Carmichael, Med-West director of research and development, and Med-West employees Kensuke Hanaoka, Patric McDonald, and Daniel Forrest Gregg. They were charged with manufacturing a controlled substance, conspiracy to obstruct justice, exporting more than four grams of concentrated cannabis, possession of illegal proceeds, and money laundering.
There’s confusion across the board when it comes to marijuana laws. Previous reports claim Med-West was above board and operated legally but, according to Cannabusinesslaw.com it’s illegal to manufacture in San Diego County. We will watch this unfold as the group is set to be arraigned on June 15.
California State operating procedures for canna businesses should always be followed to the letter, Lets hope this turns out to be a paperwork issue, or some other business misunderstanding, otherwise we should all be “aware” that raids can and will happen.
Don’t cut corners, a few more dollars won’t be worth it.
James Slatic keep your head up!!