Owner, employees sentenced for illegal marijuana stores in Colorado Springs
After 13 people were arrested in connection with illegal marijuana retail shops in Colorado Springs, the last of those indicted have been sentenced to prison.
The case goes all the way back to August 2016, when Colorado Springs Police detectives began investigating Hoppz’ Cropz Boulder and Hoppz’ Cropz Delta. Police say employees at those stores would sell cheap items at inflated prices and then “give away” marijuana.
One example included a $15 lighter, which came with a “free” gram of marijuana.
Detectives estimated that the stores sold more than 200 pounds of marijuana. Investigators also seized firearms, currency, and other narcotics.
Police say the Department of Revenue calculated those associated with the operation failed to pay taxes on approximately $257,880 of taxable income.
Colorado Springs police say all 13 people pleaded guilty to felony charges “involving the trafficking of marijuana, weapons-related charges, and/or tax-related felonies.”
On March 20, 2019, three of those indicted were sentenced. Nathan Bernheisel pleaded guilty to conspiracy to distribute marijuana and was sentenced to four years in community corrections. Derrick Bernard pleaded guilty to possession of weapons by a previous offender and was sentenced to 32 months in the Colorado Department of Corrections.
The leader of the operation, Joseph Hopper, pleaded guilty to a Colorado Organized Crime Control Act charge and tax evasion. Police say “after a custodial sentence, Hopper will face eight years of supervised probation.” If he violates the probation, he faces 8-24 years in prison.
Hoppz Cropz was also fined $1,370,275.50, according to CSPD.
Police said mugshots will be released soon.
Previous Story (Holly Morrison; July 25, 2017)
Thirteen owners of a Colorado Springs business have been indicted for the illegal distribution of over 200 pounds of marijuana.
The 13 indicted include Hoppz’ Cropz owners Joseph Hopper, Dara Wheatley, Joseph Sergio Crivici and Adam Donaldson.
Everyone involved allegedly purchased medical marijuana from licensed facilities and resold it for profit as a “free giveaway” promotion.
One way they would conduct their operation would be to sell a cheap cigarette lighter for $15 and then “give away” one gram of marijuana for free. The street value of one gram of weed is around $15.
The District Attorney’s office said that Hoppz’ Cropz “contributed to the recreational marijuana black market while successfully evading paying fees regularly associated with retail recreational marijuana dispensary licensure and evaded excise taxes that an otherwise fully licensed retail recreational dispensary would normally be required to pay to the Department of Revenue.”
The owners-managers, as well as the employees, also failed to report nearly half a million dollars in retail sales.
They also engaged in a second form of tax evasion by promoting and receiving “under the table” payments of wages.
Those involved are charged with Money Laundering, Evasion of Taxes, Attempting to Influence a Public Servant, Possession with Intent to Manufacture or Distribute Marijuana, and other crimes.
