Houston-based THC shop investigated for alleged money laundering, selling illegal marijuana – Houston Public Media

Two owners of the Houston-area THC shop, THC Club, are among several that have been charged with alleged money laundering and the possession of over 20 pounds of marijuana, according to court documents.

Brothers Krish and Kyle Arora are accused of laundering over $4 million from Jan.1, 2020, to Sept. 25, according to documents. The investigation began in January of this year when an undercover cop allegedly acquired a free sample from one of the chain’s 18 locations across Houston.

Including Krish and Kyle, nine people were named in the court documents but only six have been charged at this time. Suspected store managers Shandeed Bond, Chris Biscette and Jalen Gunther have been charged with money laundering, according to Harris County Court documents. Suspected distributor Rashan Dorsett has also been charged with money laundering.

In February, the Harris County District Attorney’s Office (HCDAO) and the Precinct 4 Harris County Constable’s Office (HCC4) began a joint investigation of all THC Club locations, according to investigators. From Feb.14 to Sept.16, HCC4 investigators said they obtained 22 samples from across all 18 locations while undercover. The samples were “pre-rolled” cigarettes filled with a “green leafy substance” rolled with smoking paper — also known as joints.

All samples were also sent to the Harris County Institute for Forensic Sciences for testing. 21 of the 22 samples allegedly came back positive for marijuana, according to documents. The remaining sample allegedly tested positive for Cannabis Sativa L — also known as hemp — due to a “white powdery substance” found within the pre-rolled joint.

Investigators also claim in the court documents that more than 57 bank accounts were discovered. Documents cite that a certified fraud examiner with the HCDAO was able to trace approximately $4.5 million in illegal proceeds generated by alleged money laundering.

On Sept. 25, search warrants were issued for all 18 of the THC Club locations. According to documents, approximately 20.69 pounds of bud, flower and leafy substances were collected.

In a statement to ABC13, the company said they have always followed the law.

“The THC Club has operated legally and openly since its inception,” the statement said. “Its owners have appeared in the media, testified in front of the legislature, and not a single one of them has broken any laws. This allegation is based on a fundamental misunderstanding of the law and the facts, and we look forward to a quick resolution in court.”

Money laundering of an amount greater than $300,000 is a first-degree felony punishable by up to life in prison and a maximum fine of $10,000. Possession of five to 50 pounds of marijuana is a third-degree felony punishable by up to 10 years in prison and a maximum fine of $10,000.

The passage of Texas House Bill 1325 in 2019, has led to confusion regarding the legality of certain THC, Tetrahydrocannabinol, products in Texas. The law was meant to regulate the farming of hemp for non-THC purposes, such as making paper or other biodegradable products. However, the bill states that plants must have a THC level of under 0.3%, leading some to interpret it as legalizing any THC products that fall under this threshold.

The interpretation of the law is still making its way through the court system. The Texas Supreme Court is expected to hear a 2021 case in the coming months regarding the legality of the Texas Department of State Health Services’s attempt to ban THC products.