Allen police on Tuesday carried out multiple search and seizure warrants on legal hemp shops in the area.
San Marcos-based attorney David Sergi, who represents at least eight of the shops targeted by police, said his clients have been accused of manufacturing and distributing illegal tetrahydrocannabinol, or THC, products.
Allen police confirmed the department, with the support of the Drug Enforcement Administration and Collin County Sheriff’s Office, executed search and seizure warrants at nine businesses in the city.
“The warrants were obtained and executed following an in-depth investigation into alleged illegal activities involving the sale of products containing greater than 0.3% THC, the psychoactive component of cannabis. Products previously sold at these nine locations have tested from 7% to 78% THC,” police said in a written statement.
Authorities said they arrested five people and “confiscated products.”
Sergi said his clients were operating legally. He said authorities destroyed products and took point-of-sale systems and records as well as some personal computers belonging to employees of some of his clients.
Allen police’s actions were an “escalation” of the tactics he has seen used in other parts of the state to intimidate businesses selling legal hemp-based products, Sergi said.
“There is a right way and a wrong way under Texas law to deal with products that may be out of compliance, and they have gone down the complete wrong path, and they will be held to account,” Sergi said.
In May, multiple businesses that sell cannabinoid products legally in the city received a letter signed by Allen Police Chief Steve Dye warning them that the department had identified CBD and vape shops selling “illegal THC products.” The letter advised businesses to ensure that they are not selling products that have illegal levels of THC.
“You are at risk of having your certificate of occupancy revoked by the City,” the letter stated. “Additionally, since such products are classified as a penalty group 2 substance due to the THC content levels, you and your staff could face possible criminal penalties for the manufacture or delivery of a controlled substance.”
In July, the DEA subpoenaed many of the businesses selling legal hemp-based products to turn over records, Sergi said. Shortly afterward, some shops created the Allen Hemp Coalition and hired Sergi to represent them.
A federal judge stopped the DEA’s subpoena later that month, he said.