Colorado Springs head shops accused of illegal marijuana sales; 13 indicted
Two Colorado Springs head shops are at the center of a 13-person indictment announced Tuesday.
The alleged criminal enterprise running the two storefronts illegally distributed nearly 200 pounds of cannabis.
The owners of Hoppz Cropz Joseph Hopper, Dara Wheatley, Joseph Sergio Crivici and Adam Donaldson are accused of leading an operation in which medical marijuana was purchased from licensed businesses and resold for a profit.
According to a news release from the Colorado Attorney Generals office, the Hoppz Cropz business model included selling low-cost items for much more than they were worth, such as a disposable lighter for $15 and including a free giveaway of marijuana.
The members of this operation had hoped they would be able to hide their alleged illegal activity in plain sight by pretending to be a legitimate business, said Attorney General Cynthia Coffman in the news release.
A screenshot taken Tuesday afternoon of the Hoppz Cropz homepage showed the shops promote: Free flower and shatter gifts with all purchases.
The owner-managers of the Hoppz Cropz shops also are accused of not paying the licensing fees required to operate a retail cannabis business and excise taxes on recreational marijuana. Hoppz Cropz, LLC did have a sales tax account with the Colorado Department of Revenue for sales of paraphernalia and clothing but allegedly failed to report the proper figures on nearly $500,000 in retail sales, according to the news release.
Additionally, managers and lower-level members of Hoppz Cropz are alleged to have paid employees under the table to evade wage withholding taxes due to CDOR.
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