A Houston-based cannabis dispensary chain, THC Club, is under investigation following a raid that resulted in the confiscation of cannabis products and charges of illegal activity. The company, which operates 18 locations across Harris County, is facing allegations related to the sale of illegal marijuana and money laundering. These developments stem from a joint undercover operation conducted by Harris County law enforcement.
Raid and Allegations
On September 25, law enforcement officials, including Harris County Constable Precincts 4 and 5, executed raids at multiple THC Club locations across Harris County. During the raids, nearly 30 pounds of cannabis products were seized. The operation was the culmination of an undercover investigation that began in January 2024.
According to court documents, nine individuals associated with THC Club, including the company’s owner, managers, and investors, are facing charges. Authorities allege that the dispensary was selling cannabis products with illegal levels of tetrahydrocannabinol (THC), the psychoactive compound in marijuana. Under Texas law, products containing more than 0.3% THC are considered illegal. Investigators also allege that the business generated $4.5 million in illegal profits over a four-year period through money laundering.
Investigation Findings
As part of the investigation, undercover detectives allegedly made 22 purchases at all 18 THC Club locations. Law enforcement officers state that testing of the products purchased from the dispensary indicated THC levels above the legal limit set by the state of Texas. The undercover purchases and subsequent testing were central to the investigation, which also included an analysis of the company’s financial records.
Authorities allege that THC Club engaged in a scheme to launder the proceeds from illegal sales over a four-year period, amounting to millions of dollars. Specific details regarding the money laundering allegations have been outlined in court documents, which are part of the ongoing legal process.
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THC Club’s Defense
In response to the allegations, THC Club has issued a statement through its attorney, asserting that the company has operated legally since its inception. According to the attorney, the company’s owners have been transparent about their business practices, appearing in media interviews and testifying before the Texas legislature. The statement claims that no laws were broken and that the allegations are based on a misunderstanding of the law.
THC Club markets itself as a leading provider of recreational marijuana in Houston. Its website claims that all products sold comply with Texas law, which allows certain cannabis products as long as they contain no more than 0.3% THC. Despite this claim, law enforcement’s testing of the products seized during the raid reportedly showed THC levels that exceeded the state’s legal limit.
Texas Cannabis Law
The legality of cannabis in Texas is regulated under the state’s farm bill, which allows for the sale of products containing no more than 0.3% THC. However, selling marijuana with THC levels exceeding this threshold is illegal. THC Club has stated that it adheres to the laws governing the sale of cannabis products in Texas. The investigation, however, challenges this assertion based on product testing results.
Cannabis legality in Texas has been a contentious issue, with state law permitting limited forms of cannabis while criminalizing others. The Texas Supreme Court is expected to address cannabis regulations in the future, which could impact the interpretation and enforcement of these laws.
Current Status
Since the raids, many THC Club locations have reportedly closed. The legal process is ongoing, and the individuals charged are expected to appear in court as the investigation proceeds. The case’s outcome may have repercussions for both the company and the cannabis industry in Texas.
No further statements have been made by law enforcement or the company’s representatives regarding future actions or legal strategies.
