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Old 06-10-2008, 05:00 PM
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Default 2 Plead Guilty In Medical Marijuana Store Scandal

James Carberry, who managed a medical marijuana store known as the "Yellow House" in a bungalow on North La Brea Avenue, and James Lawrence Ealy pleaded guilty Monday afternoon in a hearing before U.S. District Judge Manuel Real.

Both men were scheduled to begin trial on Tuesday, Feb. 5, but instead negotiated plea agreements with federal prosecutors.

Carberry pleaded guilty to a felony charge of maintaining drug-involved premises and faces up to 20 years in federal prison.

Ealy, 41, of Tujunga, faces up to one year in prison and $1,000 in fines after pleading guilty to a misdemeanor marijuana possession charge.

Each man is free on bond and scheduled to be sentenced on April 21 along with Larry Roger Kristich, the 65-year-old owner of the Oakland-based Compassionate Caregivers chain of seven California marijuana dispensaries.

Carberry, Ealy and Kristich were named by a federal grand jury last July in an indictment alleging drug and money laundering crimes.

Today, Carberry admitted to managing the Yellow House, which prosecutors said sold more than $1.7 million in marijuana and THC products in March 2005 alone.

Ealy, a business associate of Kristich's, had been charged with seven money-laundering counts.

Kristich pleaded guilty last week to federal charges in connection with his role in the marijuana dispensaries. He admitted in his plea agreement that he was responsible for distributing more than 15,000 pounds of marijuana.

Kristich owned and operated Compassionate Caregivers stores in West Hollywood, San Francisco, Oakland, San Diego, San Leandro, Bakersfield and Ukiah from 2002 to 2005.

Kristich's admitted crimes include maintaining drug-involved premises and money laundering.

He faces up to 40 years in prison plus $95 million in fines, stemming from the total sales of marijuana and THC products at his stores.

Those products included Kief Kat candy bars, Toke sodas and Trippy peanut butter, prosecutors said. Marijuana and marijuana plants also were sold to minors at the stores, prosecutors said.

Kristich, who is currently jailed at the Metropolitan Detention Center in downtown Los Angeles, also agreed to forfeit more than $1.2 million in profits generated by his stores


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