A Stockton man was sentenced today to 42 months in state prison for offenses involving cultivation and sale of marijuana through storefront businesses in Sacramento and Stockton.
Lynn Farrell Smith, 63, was sentenced in federal court in Sacramento by U.S. District Judge Garlanld E. Burrell Jr. Smith’s co-defendant Robert Duncan, 30, of Oakland, also was sentenced today to 24 months in prison for offenses involving cultivation of marijuana in the same case, according to a federal Department of Justice news release.
Smith pleaded guilty Jan. 18 to one count of conspiring to manufacture and distribute marijuana, two counts of manufacturing marijuana in connection with two separate indoor marijuana grow operations in Stockton, and six counts of distribution of marijuana in connection with six separate storefronts in Stockton and Sacramento.
Duncan pleaded guilty on Sept. 21, 2012, to marijuana manufacturing charges related to the same two Stockton operations.
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Authorities said more than $160,000 was previously forfeited in the case.
Last week, another co-defendant, Matthew Davies, 35, was sentenced to 60 months in federal prison and a $100,000 fine in the same case. Davies had pleaded guilty to one count of conspiring to manufacture and distribute marijuana, two counts of manufacturing marijuana in connection with two separate indoor marijuana grow operations, and seven counts of distribution of marijuana in connection with multiple storefront operations.
According to court documents, Davies and Smith owned and operated multiple marijuana storefront businesses and two marijuana growing facilities in the Sacramento and Stockton areas. One of the two marijuana-growing operations was a large, sophisticated indoor warehouse on Vickie Lane in Stockton that was set up and managed by Duncan. Stockton police responded to a burglary-in-progress call on Oct.4, 2011, and found more than 2,000 plants growing and a dozen workers inside trimming the finished product, authorities said.
The follow-up investigation identified numerous marijuana storefront businesses in Stockton and Sacramento that were owned and operated by Davies and Smith between 2009 and 2011. Authorities said the businesses generated substantial revenues. They cited profit and loss statements obtained during the investigation that showed the Pathways Family Health Cooperative in Stockton, which closed in 2010 due to action by the city of Stockton, generated more than $2.2 million in marijuana sales in less than a year. Similarly, the Central Valley Caregivers Cooperative storefront that Davies and Smith owned and operated just outside the Stockton city limits generated more than $4.5 million in gross sales in 2011 before federal search warrant were executed in mid-October of that year.
The MediZen business in Sacramento generated $2 million gross sales of marijuana during that same period.
During 2011, Davies and Smith also managed and operated River City Wellness and R&R Wellness, renamed Sacramento Patient’s Group, and purchased and operated the Twelve Hour Care storefront, all in Sacramento.
During 2011, Davies purchased a 50 percent interest in Port City Wellness in Stockton, which was open briefly in September and October of 2011, for approximately $200,000, using funds from the Central Valley Caregivers Cooperative and MediZen stores, authorities said.
Davies and Smith also briefly operated a storefront business in Manteca before it was closed by action of the city.
The cases against Davies, Smith and Duncan resulted from an investigation by the U.S. Drug Enforcement Administration with assistance of the U.S. Marshal’s Service, the Internal Revenue Service, the San Joaquin County METRO narcotics task force and the Stockton Police Department.