$1.5B black market marijuana ring dismantled in Oklahoma-led operation

Media Report

What investigators say about the $1.5B marijuana trafficking case led by Gentner Drummond

OKLAHOMA CITY –

The Oklahoma Attorney General’s Office announced on Tuesday the results of a bust involving a $1.5 billion illegal drug operation. The two-day operation led by the AG’s office with support from local police and federal agents resulted in 20 arrests and authorities said the investigation was far from over.

At the center of what the Attorney General Gentner Drummond called large-scale, black market marijuana fraud investigation was the drug kingpin Hao Chen. He was the first to be arrested as part of Operation Blunt Force last week.

“He has been captured and he’s currently being held at Rikers Island New York,” said Drummond.

Chen’s arrest led to 19 more arrests, more than a dozen seized firearms and law enforcement destroying thousands of pounds of black market marijuana.

“The Hao Chen organization ran a sophisticated fraud and trafficking operation built on deception,” said Drummond.
Drummond said his agency’s investigation started in March 2024.

“It used a straw ownership scheme to unlawfully obtain licenses from the Oklahoma Medical Marijuana Authority and registrations from the Oklahoma Bureau of Narcotics,” said Drummond. “Straw owners were paid to lend their identities to fraudulent grow applications.”

Investigators discovered 20 illegal operations in Oklahoma and seven other states, all manufacturing marijuana on an industrial scale. Authorities said the black market drugs were then trafficked across the country.

“Investigators uncovered multiple bank accounts used to launder proceeds from illegal drug trafficking,” said Drummond. “Fund moving from New York to Oklahoma.”

Drummond added the national criminal operation exploited Oklahoma’s marijuana laws.

During the course of the investigation, the AG’s office executed 50 search warrants. A multi-county grand jury reviewed the evidence and returned an 18 count indictment last week. Those arrested face charges of racketeering, conspiracy to defraud the state, document fraud, aggravated manufacturing of marijuana and unlawful proceeds.

https://www.news9.com/crime/1-5b-black-market-marijuana-ring-dismantled-in-oklahoma-led-operation

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