December 10, 2009

United States Attorney Karen P. Hewitt announced that Joseph Nunes pled guilty today before Magistrate Judge William McCurine, Jr., to three felony counts of a superseding information: Count One ­manufacturing marijuana plants, in violation of Title 21, United States Code, Section 841(a)(1); Count Two ­renting, using and maintaining two drug-related premises, in violation of Title 21, United States Code, Section 856(a)(1); and Count Three – money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(I). The plea is subject to final acceptance by United States District Court Judge Larry A. Burns at the time of sentencing.

According to Assistant U.S. Attorney Sherri Walker Hobson, who is prosecuting the case, Joseph Nunes was arrested following a federal search warrant executed at 3415 Mission Boulevard, San Diego, California, known as “Green Kross Collective,” where agents found marijuana plants, marijuana contained in bags and jars, cookies and brownies containing marijuana, sodas containing marijuana, lollipops containing marijuana, and other edible marijuana items. Agents also found $38,915 in cash at that location. Agents further discovered “sales receipts” books revealing that during a two-day period, Green Kross Collective sold approximately $16,000 of marijuana and marijuana products.

Upon searching Nunes’ downtown condominium, agents found approximately $29,777 in cash. At 777 6th Avenue, Suite 127, San Diego, California, known as “Downtown Kush Lounge Cooperative,” agents found 89 marijuana plants. As part of his plea, Nunes admitted that he rented the location 3415 Mission Boulevard, San Diego, California, since May 1, 2009, as well as 777 6th Avenue, Suite 127, San Diego, California, since September 1, 2009, for the purpose of distributing marijuana and manufacturing marijuana plants, in violation of federal law. In his plea, Nunes also admitted that he laundered drug proceeds by renting these locations, as well as another warehouse located at 3515 Hancock Street, San Diego, California, to facilitate and promote his drug activities. Nunes also agreed to forfeit $71,336 in drug proceeds.

Sentencing is set before Judge Burns on March 22, 2010 at 9:00 a.m.

DEFENDANT Case Number: 09CR3651LAB Joseph Nunes

SUMMARY OF CHARGES

Title 21, United States Code, Section 841(a)(1) – Manufacturing Marijuana Plants Maximum Penalties: 5 years in custody; $250,000 fine; $100 Special Assessment; 1 year of supervised release; forfeiture

Title 21, United States Code, Section 856(a)(1) – Renting, Using, and Maintaining Drug-Related Premises Maximum Penalties: 20 years in custody; $500,000 fine; $100 Special Assessment; 3 years of supervised release; forfeiture

Title 18, United States Code, Section 1956 – Money Laundering Maximum Penalties: 20 years in custody; $500,000 fine; $100 Special Assessment; 3 years of supervised release; forfeiture

Criminal Forfeiture

PARTICIPATING AGENCIES

Drug Enforcement Administration
San Diego Narcotics Task Force
Internal Revenue Service, Criminal Investigation
Carlsbad Police Department
San Diego Police Department