Attorneys for Pot Club Owners to Challenge Felony Charges

Editor's Note: This report was updated at 9 a.m. Friday to add a statement from an official with the City of Newark.

Five men affiliated with a controversial marijuana dispensary in Newark were arraigned on dozens of felony charges Thursday, but their attorney said they wil be challenging the charges against them.

The owners of NBD Cannabis Collective, Teddy Miller of Salinas and Bob James Uwanawich of Fremont, appeared at the Fremont Hall of Justice with co-defendants Salim Dost, 22, Michael Glenn Martin, 21, and Kyle Cameron Smith, 22. Dost, Martin and Smith are all volunteers with the medicinal marijuana dispensary and are believed to live in the Tri-City area.

Together they face 30 charges, most of which are felonies. Those charges vary among drug-related crimes, tax evasion and Labor Code violations, said Deputy District Attorney Mark Melton.

No plea was entered but all five were presented with a document outlining their constitutional rights and the charges being filed against them.

Managing Partner Kirk Elliott of Roberts & Elliot LLP was present to represent the collective and the five individuals, who were advised not to speak with anyone about the case.

The legal complaints against the club’s affiliates stem from held on June 28 that resulted in the arrest of Miller and Uwanawich and the closure of the pot club, located at 7180 Thornton Ave.

Because Dost, Martin and Smith were not arrested previously, they were ordered to provide booking information — a request made by Melton — by Sept. 9, which is when they are scheduled to appear in court again. A plea date is to be scheduled at that time.

 — which now displays a large banner on its window that reads “Newark Medical Cannabis Initiative" — has re-opened since the raid.

During the June 28 raid, officers seized $30,000 in cash, 20 pounds of processed marijuana, 500 edibles and a shotgun, authorities said. Per the investigation, , according to the owners’ attorneys, Roberts & Elliott LLP.

Analysis on the sources of those funds followed the raid. An investigation headed by the State of California's Franchise Tax Board was conducted, based upon law enforcement officers' belief that NBD Cannabis Collective was generating a profit through the collective, officials have said.

Roberts & Elliott has stated that more than 90 percent of the monies seized were proceeds of a life insurance policy.

Melton said information brought forth the District Attorney’s office indicate that the collective was not operating lawfully.

“Based on the evidence brought to us… we believe they were not following the law when it comes to properly dispensing medicinal marijuana,” Melton said.

Elliott said the law firm does not agree.

“Our position is that this was a lawful conduct and we’re going to fight the charges vigorously,” Elliott said.

Elliott added that the attorneys plan to file a demurrer — a legal challenge to the complaints made against the individuals. He said the goal is to eliminate some of the charges before going further into the court proceedings.

NBD Cannabis Collective has clashed with the city of Newark since it opened in December 2009. The collective does not have a business license to operate in Newark, city officials have said.

But attorneys of Roberts & Elliot, LLP, said the collective does not require a business license to operate because it is a non-profit organization.

Elliot said the dispensary now has a conditional use permit through the City of Newark. But Community Development Director Terrence Grindall said otherwise.

"They do not have a conditional use permit or any other permit to operate," Grindall said in an email to Patch Friday morning.

NBD Cannabis Collective did apply for a planned used permit and a about granting them such a permit for the medical cannabis dispensary was scheduled for July 12 but was postponed at the request of a representative with NBD.

Grindall added that "the staff report for the Conditional Use Permit application strongly recommended denial."

Newark Patch plans to provide readers with a list of the charges Dost, Martin, Miller, Smith and Uwanawich are facing before the next court date.

Subscribe to our RSS feed to get updates on this story. Follow Newark Patch at twitter.com/newarkpatch or facebook.com/newarkpatch.