News Release
Date: July 18, 2012
Contact: DEA Public Affairs

Three Stockton Men Indicted on Large
Warehouse Marijuana Growing Operation

July 18 (Sacramento, Calif.) Drug Enforcement Administration Special Agent in Charge Anthony D. Williams and United States Attorney Benjamin B. Wagner announced that a federal grand jury returned a two-count indictment today charging Matthew R. Davies, 34; Lynn F. Smith, 62; and Robert Duncan, 29, all of Stockton, with cultivating marijuana.

According to the indictment, in 2010 and 2011, the defendants grew marijuana in Stockton in a warehouse at 1838 Vicki Lane and at a residence at 3115 Autumn Chase Circle.

According to court documents, the investigation began on September 22, 2011 when a CHP officer conducted a traffic stop of Davies and Smith in Stockton. Davies told the officer that he was responding to a burglar alarm at a facility where he stored marijuana that he sold at his marijuana dispensary called “Medizen” on 2201 Northgate Blvd. in Sacramento.

On October 4, 2011, Stockton Police Officers responded to a call of a burglary in progress at a single-story concrete warehouse on Vicki Lane. When the first officer arrived, he observed two people who appeared to be breaking into the building. As the officer approached them, he noticed a strong odor of marijuana coming from the building. When the two men gave conflicting and non-responsive answers to questions posed, the officers called for backup. The officers surrounded the building. Fourteen people were discovered inside the building, and the officers observed hundreds of marijuana plants inside the warehouse. Robert Duncan was one of the persons found in the warehouse, and he told the officers that the people in the warehouse had been processing marijuana.

A federal search warrant was obtained for the warehouse where 1,962 marijuana plants and 40 pounds of processed marijuana were found. Paperwork inside the warehouse included bills, a letter addressed to “Lynn Smith” of “Central Valley Caregivers Cooperative Inc.,” employee pay stubs from CVCC, and bank statements from 2011 showing hundreds of thousands of dollars in deposits for CVCC and Medizen.

On October 17, 2011, federal search warrants were executed for the marijuana dispensaries of CVCC at 3260 Tomahawk Dr. in Stockton and Medizen in Sacramento, the residences of Davies on Embarcadero Drive in Stockton and Lynn Smith on Fourteen Mile Drive in Stockton, and the business offices of CVCC and Medizen at 3620 W. Hammer Lane in Stockton. During the searches, agents seized marijuana, cash, documents, and computers.

This case is the product of an investigation by the U.S. Drug Enforcement Administration, the U.S. Marshals Service, the Internal Revenue Service-Criminal Investigation, and the San Joaquin County Metropolitan Task Force with the assistance of the Stockton Police Department. Assistant United States Attorney Richard J. Bender is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 40 years in prison. The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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