On Oct. 19, 2009, Deputy Attorney General David Ogden released a memo that instructed the Department of Justice not to focus federal resources "on individuals whose actions are in clear and unambiguous compliance with existing state laws providing for the medical use of marijuana." Davies took that memo as a green light to join the "green rush" and use his MBA expertise to run a taxpaying enterprise to distribute what he refers to as "medicine" to sick people.
Now that he faces a minimum sentence of seven years in prison if he pleads guilty, the father of two understands that he should have read the memo more carefully. "Looking back and reading that now, you can drive a Mack truck through that," Davies told me in a meeting with his wife, Molly, and attorney Steven Ragland. In fact, the Ogden memo clearly stated that Obama's Department of Justice would consider "prosecution of significant traffickers of illegal drugs, including marijuana," to be a "core priority."
Ah, but the heart wants what the heart wants. Davies says his grandfather died a painful death from stomach cancer. He wanted to help others avoid excruciating pain.
But he also had seen people run dispensaries the wrong way -- for example, not paying their fair share of taxes -- and he thought his experience running a bistro and property management firm would enable him to show how medical marijuana dispensing could be done right. It clicked. "It was that whole Silicon Valley culture," he recalled. His workers felt they were "part of something."
Paradise started to crumble Sept. 22, 2011, when a burglar alarm went off. A California Highway Patrol officer stopped Davies and partner Lynn Smith, and Davies told the officer that the two were on their way to check on a Sacramento facility where they stored marijuana. In July, when a grand jury returned a two-count indictment for cultivating marijuana against Davies, Smith and Robert Duncan, 29, federal prosecutors reported that Davies' candor with the CHP started an investigation. Davies thinks they included that detail to make him look stupid.
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