Black market weed operations flood California suburb, say police: The pot farm next door

 

In Antioch, California, just after dawn on a recent spring morning, police clad in tactical gear arrived with a search warrant at an upscale home in a quiet suburban neighborhood about an hour from San Francisco. When no one responded to their knocks, officers from California’s Department of Cannabis Control, responsible for overseeing legal marijuana sales in the state, used a battering ram on the steel-reinforced front door. When that didn’t work, they turned to a power saw to cut through a fortified back entrance and gain access to the spacious five-bedroom property.

Inside, they discovered exactly what they were searching for: evidence of a black-market marijuana operation hidden in plain sight among the cookie-cutter suburban homes. The officers seized 80 pounds of marijuana from the expensive two-story residence in Antioch. As curious neighbors watched, they conducted similar raids on two more homes on the same block that morning in late April. The operations resulted in the removal of approximately $1 million worth of illegal marijuana grown by unlicensed cultivators. Although cars were parked in the driveways, no individuals were found inside the homes, and no arrests were made.

In California, Antioch has become notorious among Cannabis Control officers for its high-yield, secretive indoor marijuana grow operations. Over the past two years, authorities have raided at least 60 suspected grow houses in the city and believe that over 100 more remain active.

The situation in Antioch sheds light on a broader trend seen across California and other states like Oklahoma, Oregon, New Mexico, and Maine: large-scale marijuana production often linked to foreign groups, particularly from China. A CNN investigation reveals that in this city of 115,000, the combination of minimal repercussions and substantial profits from illegal marijuana cultivation has led to a pattern of enforcement challenges and audacious criminal behavior, much to the dismay of local residents.

These unlicensed operations not only cause significant damage to properties—often leading to fires and mold—but also result in homes being deemed uninhabitable. Despite this, properties are sometimes quickly repaired and sold at much higher prices than before. Throughout this, those involved in these illegal activities frequently evade accountability.

The situation in Antioch reflects a broader issue in California, where relaxed regulations on black-market cannabis have done little to shift the state’s status as a major producer. 

California, renowned globally for its cannabis much like Napa Valley is for its wine, accounts for about 40% of the nation’s marijuana production—almost entirely from unlicensed growers, according to economist Beau Whitney. In comparison, Oregon, the second-largest producer, contributes less than a fifth of California’s total output.

This positions California at the heart of a sprawling underground economy, as Whitney notes that three-quarters of the U.S. marijuana market remains illegal. Law enforcement officials, including former DEA leaders and FBI Director Christopher Wray, suggest that much of this illicit activity is linked to Chinese organized crime.

In Antioch, the operations exhibit clear signs of involvement by “the Chinese criminal syndicate,” according to Bill Jones, Chief of Law Enforcement at the California Department of Cannabis Control. Over the past five years, Chinese criminal networks have become the predominant force in the state's illegal cannabis trade, surpassing Mexican cartels.

Authorities have observed evidence suggesting that the activities in Antioch are organized crime-related, noting the sophistication and apparent coordination of those involved. However, they have refrained from providing further details due to ongoing investigations.

A review of search warrants, property records, and interviews with local residents reveals that most of the properties raided were owned or occupied by individuals with Chinese names, in a city where Asians constitute about 15% of the population.

One of the raided homes belonged to Samson Liu, a police officer in nearby Oakland, according to CNN. Cannabis Control agents had to use a power saw to access the property. Officials have not confirmed whether Liu resided there or had tenants, citing the ongoing investigation.

The home was found to contain 80 pounds of illegal marijuana trimmings hidden in garbage bags. It had also been extensively modified for cultivation purposes: doors were reinforced, windows boarded up, and a heavy-duty generator was installed in the laundry room to ensure adequate power. Industrial air ducts were installed throughout the property for ventilation.

Almost every state in the U.S., regardless of its stance on marijuana, and the federal government treat the cultivation and/or sale of unlicensed marijuana as a serious crime, often resulting in felony-level fines and prison sentences, according to a CNN analysis of data from the National Organization for the Reform of Marijuana Laws.

However, in California, federal authorities have largely adopted a hands-off approach to marijuana enforcement in recent years. State law classifies the possession of illegal marijuana as a misdemeanor offense, with a few exceptions, such as when the individual is a registered sex offender or selling to a minor.

Regarding the house owned by Liu, Cannabis Control agents have referred the case to the internal affairs division of the Oakland Police Department, but no arrests have been made related to the illegal activity.

CNN's attempts to contact Liu by phone, email, and in person were unsuccessful. The Oakland Police Department stated it is working with external law enforcement agencies and handling the investigation as a personnel matter. Liu was placed on administrative leave the day of the raid in late April.

Despite the large quantities of marijuana and cash seized in approximately 60 raids in Antioch since 2022, only two individuals associated with these raids have been arrested and charged, both receiving misdemeanor charges, according to records from Cannabis Control.

Antioch ranks among the top cities in California for marijuana raids.

 From the Department of Cannabis Control’s establishment in July 2021 through the end of May 2024, the agency conducted 58 raids in Antioch. This places Antioch second only to Los Angeles, which had 89 raids, according to a CNN analysis of the agency's data.

Although the state regularly seizes cash during raids on homes, it does not typically confiscate the properties themselves. Of the 60 homes raided in Antioch, roughly half were renovated and sold by their original owners—often for significantly more than their previous value—following the busts, CNN discovered.

CNN found that one real estate agent was involved in selling four of these raided properties. Property records show that she owns one of these homes, where $937,000 worth of illegal cannabis was seized in a December raid.

This summer, the agent listed another Antioch property for sale, less than three months after it was raided and declared uninhabitable by the city due to its previous use as an illegal grow house.

In a brief interview with CNN, the agent dismissed questions about her connection to properties involved in marijuana cultivation.

“We cover the fine,” said the real estate agent, offering no further details. “There’s no issue.”

Darius Chan, the attorney representing the real estate agent, stated that his client is not involved in any illegal marijuana operations. While Chan admitted that the agent owns a property that was used for illegal marijuana cultivation, he clarified that the house was leased to a tenant who used it as a grow house. According to Chan, the agent was unaware of the property's conversion into a grow house until after the fact. Chan described such conversions as a “persistent issue” in the region.

“It’s unfair to associate her with these few houses or to connect her to the illegal cannabis operation,” Chan argued. “She’s a victim of circumstance.”

Despite the legalization of recreational marijuana in California in 2016, the state continues to be a hotspot for unlicensed black-market activity. Illegal operators evade the rules and fees of California’s stringent regulatory system, avoiding taxes and thereby undercutting the legal market. This has contributed to a struggling legal market, exacerbated by the surplus from black-market operations.

The state’s legalization law includes a provision that significantly reduces felony prosecutions related to marijuana. In contrast, other states like Washington and Colorado impose felony charges on high-volume illegal producers and distributors, as noted by CNN’s review of state laws.

In California, “You can have seven plants or 70,000 plants, and it’s still just a misdemeanor violation,” said Siskiyou County Sheriff Jeremiah LaRue, referring to the widespread illegal cultivation in northern California. “It’s essentially a joke.”

San Bernardino County Sheriff Shannon Dicus criticized the state’s lax laws for fostering an environment where black-market growers face minimal risk and stand to gain significantly.

“It’s risk versus reward,” Dicus said. “Very small risk, very high reward.”

Unlicensed operators distribute their California-grown marijuana across the U.S., including to the East Coast, where outdoor cultivation is less feasible in colder seasons.

The illegal marijuana industry is linked to various problems, including violent crime and environmental damage. Grow houses are often left in poor condition due to excessive power and water usage, with issues like makeshift wiring and moldy walls. Workers may be exploited or trafficked, according to Cannabis Control officials. Additionally, untested weed from illegal sources can end up in legal dispensaries, leading to potential health risks for consumers.

“People are smoking pesticides,” said Kevin McInerney, a commander with the Department of Cannabis Control.

Recent federal cases shed light on organized illegal grow operations. In one case from 2018, federal authorities alleged that about 100 homes in the Greater Sacramento area were bought by Chinese nationals and converted into marijuana cultivation centers. This investigation resulted in money-laundering and marijuana-manufacturing charges against four conspirators, including a real estate broker.

In another case, a real estate agent used millions from Chinese investors to buy nine homes in San Bernardino County, which were then turned into illegal grow sites. Though initially facing a life sentence, the agent pleaded guilty in 2020 to conspiracy charges and was ultimately sentenced to six months in prison. In a letter to the judge, the agent claimed he was enticed by promises of profit and was led to believe that marijuana cultivation was merely a misdemeanor.

Some US politicians and law enforcement officials have speculated that the Chinese government might be involved in or at least monitoring illegal cannabis grow house operations. For example, in February, two members of Maine’s Congressional delegation—one Independent and one moderate Democrat—issued a joint press release expressing concern about “the Chinese Communist Party (CCP) affiliated marijuana cultivation operations” in their state and nationwide.

However, FBI Director Christopher Wray stated at a public hearing earlier this year that while the agency is noticing “more ties between many of these growing operations and Chinese organized crime,” there is no direct evidence linking the marijuana farms to the Chinese government.

In a CNN interview, four Mandarin-speaking Chinese nationals involved in the illegal cannabis trade shared their experiences. One man, who wished to remain anonymous due to his immigration status and safety concerns, recounted crossing the Mexican border about a year ago and finding work in the underground cannabis market through a Los Angeles-area employment agency for recent Chinese immigrants.

He explained that he initially worked for a friend who operated several unlicensed outdoor greenhouses near Fresno, California, for seven months. He then relocated to the San Diego area, where he helped produce 40 to 50 pounds of marijuana per month from a home setup.

“You have to steal electricity,” he told CNN. “Without stealing electricity, the monthly bill would exceed $10,000.”

According to him, the marijuana is sold for $1,000 per pound and picked up by Chinese buyers who come directly to the house. He is unaware of its subsequent distribution. Although the details of his account could not be independently verified, he provided photos of large bags of marijuana purportedly from the operation.

Vanda Felbab-Brown, a transnational crime and nontraditional security threats expert at the Brookings Institute, indicated that the trafficking of Chinese migrants, many of whom end up involved in illegal marijuana cultivation, appears to be orchestrated by a mix of Chinese criminal networks and Mexican criminal groups. She believes this issue requires increased attention from the US government.

"We have been focusing on Chinese military decision-making, but Chinese organized crime and broader organized crime have not been prioritized in intelligence gathering," Felbab-Brown said. "That needs to change."

In recent years, investigators from Cannabis Control in Antioch and surrounding cities began receiving a steady stream of anonymous tips and complaints from neighbors. A key indicator of illegal cultivation was unusually high power usage.

Jones from Cannabis Control recounted an instance where a neighbor received a $40,000 PG&E bill, which was actually meant for a grow house across the street.

During a raid this spring, authorities discovered approximately $1 million worth of illegal marijuana in a spacious five-bedroom home on Shell Ridge Way. City records obtained by CNN reveal that an inspector deemed the house uninhabitable during the March raid due to fire hazards and chemicals entering the drainage system. The inspector revisited the property less than a month later and removed the uninhabitable designation. By June, the house was back on the market as a “dream home” listed at $889,000—almost $200,000 more than its 2020 sale price.

McInerney of Cannabis Control believes that addressing the complex networks behind illegal grow houses will require additional resources and a cultural shift within his agency, which he is advocating for. He suggests complementing the current narcotics-investigation tactics—surveillance and raids—with more detailed paperwork analysis to target those profiting from these operations.

“That’s where we can catch the people making the money,” McInerney said. “But we’re swimming upstream.”

Regardless of the involvement of organized crime, many Antioch residents find the situation both strange and frustrating. Bill Tillson, who lives on the same block as three recently raided homes, including that of an Oakland police officer, noted that individuals associated with the properties were seen cleaning them, removing marijuana-growing equipment, and listing one house for $900,000. He views the situation as unfair.

“It’s like, yeah, we’ll buy these houses, use them as grow houses, and face minimal consequences,” Tillson said. “Where are the higher-ups and politicians? Are they just letting this happen?”