Allen police raid 9 hemp shops accused of selling products with illegal levels of THC

Allen police executed multiple search and seizure warrants Tuesday legal hemp shops in the area.

San Marcos-based attorney David Sergi, who represents at least eight of the stores targeted by police, said his clients have been charged with manufacturing and distributing illegal tetrahydrocannabinol, or THC, products.

Allen police confirmed that the department, with assistance from the Drug Enforcement Administration and the 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 more than 0.3% THC, the psychoactive component of cannabis. Products previously sold at these nine locations 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 seized point-of-sale systems and records, as well as some personal computers belonging to some store employees.

He said the department's actions were an “escalation” of tactics he has seen used in other parts of the state to intimidate businesses that sell legal hemp-based products.

“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 wrong path and will be held accountable,” Sergi said.

In May, many businesses that sell cannabinoid products legally in the city received a letter signed by Allen Police Chief Steve Dye warning that the department had identified CBD and vape shops selling “illegal THC products.” The letter advised businesses to ensure they are not selling products with illegal levels of THC.

“You risk having your certificate of occupancy removed from the city,” the letter said. “Furthermore, since such products are classified as a Schedule 2 substance due to the levels of THC content, you and your staff may face possible criminal penalties for manufacturing or distributing a controlled substance.”

In July, the DEA subpoenaed many of the businesses that sell legal hemp-based products to hand over the records, Sergi said. Soon after, several stores formed the Allen Hemp Coalition and hired Sergi to represent them.

A federal judge blocked the DEA's subpoena later that month, he said.