Search warrants served following cannabis investigation on Central Coast

Multiple search warrants were served across the Central Coast as part of an investigation into suspected tax evasion, money laundering, failure to provide workers’ compensation insurance to employees and unlawful cannabis distribution and cultivation.

The locations searched were facilities associated with cannabis operators suspected of operating out of compliance with the terms of their state and local regulated operations.

The investigation includes evidence at at least one of the businesses was using money orders in a sophisticated effort to launder large amounts of currency and avoid payment of Santa Cruz County Cannabis Business Tax. The investigation was joined by the Internal Revenue Service Criminal Investigation Unit, California Department of Tax and Fee Administration (CDTFA), California Bureau of Cannabis Control, Monterey County Sheriff’s Office, California Department of Fish and Wildlife, and other agencies.

No arrests were made during the service of the search warrants.

KION’s Ashley Keehn will have more tonight about the operators involved and what will happen next.