Business & Tech

Medical Marijuana Dispensaries Close Doors in Malibu

Earlier this month, federal officials sent out warning letters to medical marijuana dispensary owners around Los Angeles County, including in Malibu.

One of two medical marijuana dispensary stores in Malibu have already closed up shop, and the second will shut its doors for business by July 1, according to a city official.

Federal authorities began a crackdown on pot shops earlier this month.

Malibu Collective Caregivers will be out of their current location by July 1st, Olivia Damavandi, media information officer for the City of Malibu said.

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The other Medical Marijuana dispensary in Malibu, , has already closed. Travis Crisco, who worked for PCH Collective said the store officially closed June 19.

PCH Collective received a Cease and Desist letter from the office of U.S. Attorney Birotte Jr. ordering the store's closure within 14 days on June 5, Crisco said. 

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If the store did not close, Crisco said, it would risk potential raid and seizures by the DEA.

Earlier this month, federal authorities filed two asset forfeiture lawsuits against properties housing three marijuana stores in Santa Fe Springs and sent out warning letters to property owners and operators of 34 other dispensaries doing buisness or recently closed in Los Angeles County, including in Malibu, U.S. Attorney Andre Birotte said in a statement.

According to federal officials, the targeted establishments were violating federal law, which generally does not recognize the use of pot for any reason.

"Under federal law, the distribution of marijuana ... is prohibited except under very limited circumstances not applicable here. The government is informed and believes that at all times relevant to this complaint, the operation of the marijuana stores on the defendant property was not (and is not) permitted under California law," Lawsuits filed in Los Angeles federal court on June 5 read. 

According to Malibu's city code, no more than two medical marijuana dispensaries are permitted to operate in the city at any time.


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