In a reprise of a tactic first used against Los Angeles and Sacramento area dispensaries, the DEA this week sent letters to dozens of owners of buildings leased to San Francisco dispensaries warning them that their buildings could be seized. Dispensary operators responded by filing suit in federal court to stop the agency, and a high-ranking congressman has promised to hold hearings on the matter.

Medical marijuana has been legal in California since 1996, and currently, hundreds of dispensaries are operating in the state to provide marijuana to patients qualified under the state's admittedly loose law. DEA raids and federal prosecution have failed to blunt their growth, and the landlord letters are only the latest wrinkle in the agency's war on the will of California voters.

"By this notice, you have been made aware of the purposes for which the property is being used," said a copy of the letter sent to San Francisco landlords, signed by the special agent in charge of the DEA's San Francisco office, Javier Pena. "You are further advised that violations of federal laws relating to marijuana may result in criminal prosecution, imprisonment, fines and forfeiture of assets."

The letter gave no deadlines.

San Francisco once had as many as 40 dispensaries, although only 28 have applied for licenses under a city regulatory process that began in July. But dispensaries may also be linked to other buildings where medical marijuana grows or storage take place.

"The feds do as they please... (and) they've done it before," San Francisco Supervisor Ross Mirkarimi told the San Francisco Chronicle, adding he would not be surprised at a crackdown. "I would only hope they would coordinate with local law enforcement and that they are aware of the new regulatory system we have in place, and are sensitive to it."

Dispensary operators, however, were not quite so sanguine. A previously little known industry grouping, the Union of Medical Marijuana Providers, last week joined the Los Angeles area Arts District Healing Center in filing a federal lawsuit charging the DEA with extorting landlords. The lawsuit seeks an injunction to bar the DEA from sending any more threatening letters.

Dispensary operators and their supporters are also looking forward to hearings on the issue in the House Judiciary Committee. In response to complaints from California, last Friday, committee chair Rep. John Conyers (D-MI) announced he would hold hearings on the issue.

"I am deeply concerned about recent reports that the Drug Enforcement Administration is threatening private landlords with asset forfeiture and possible imprisonment if they refuse to evict organizations legally dispensing medical marijuana to suffering patients," Conyers said in a statement. "The committee has already questioned the DEA about its efforts to undermine California state law on this subject, and we intend to sharply question this specific tactic as part of our oversight efforts."

"When I saw Representative Conyers statement regarding the DEA's abuse of their power in order to thwart California's law, I knew that our legal efforts were beginning to pay off," said James Shaw, executive director of the Union. "The DEA has alienated too many citizens with their heavy-handed 'above the law tactics' for too long. We welcome all the support we can find in our efforts to ensure our rights are protected."

Steven Schectman, the Union's chief counsel, said he has contacted Representative Conyers' office in order to provide his staff copies of the litigation that was filed in both state and federal Court. "I am hopeful we can support the Judiciary Committee in any way possible. As a result of our research and investigation of the DEA's threatening letter campaign, in preparation of our litigation, we have become the most knowledgeable group, outside the DEA, who best understands the scope and import of their tactics. We are here to help."

A routine audit of the Fulton County (Atlanta) district attorney's office has turned up questionable spending of money seized from drug suspects under asset forfeiture laws. Less than a month ago, similar apparent abuses were uncovered in the Austin, Texas, police department.

According to auditor's reports, almost one-third of the 376 checks written out of the asset forfeiture account in 2006 were either questionable or not allowed under federal guidelines. Those questionable expenses totaled more than $2 million.

Under federal asset forfeiture laws, money seized by the feds and handed over to state law enforcement may only be used for law enforcement purposes. But District Attorney Paul Howard has a very expansive view of just what that means. According to auditor's reports gathered by the Atlanta Journal-Constitution under the state open records act, Howard's asset forfeiture fund spending included:

• $1,500 to sponsor the Georgia Association of Black Women Attorneys;
• $5,150 for benefits, dinners, football tickets, fundraisers, and balls sponsored by various civic organizations -- none of them directly related to law enforcement;
• $5,500 spent on rent and catering for a staff Christmas party;
• $89 for a Superman-style red cape with "Super Lawyer" printed on it that an assistant prosecutor was encouraged to wear at the Christmas party;
• $150 for a dinner party to celebrate the conviction of a murderer; and
• $9,100 for Howard's perfect attendance program for students in Atlanta's public elementary schools.

DA Howard defended the expenditures, saying they were tools for fighting crime and boosting office morale. "We cannot pay our employees bonuses. We can't pay overtime," Howard said. "I tried to come up with ways to increase morale."

But county auditors questioned the propriety of the spending, saying Howard may have violated federal asset forfeiture rules. Auditors also raised flags about Howard's mixing various types of funding in the same account.

"This account has several types of funds commingled," the auditor wrote. "These commingled funds include victim witness funds, federal equitable sharing agreement funds and regular operating funds. Commingling these funds is strictly prohibited since all these funds are for a specific purpose."

Howard said there is nothing wrong with putting money from different sources in one account. "We tracked the money," Howard said. "The money was not misused." But he has since created separate accounts for the different funds.

The auditor's reports are not final. They are now being reviewed by a private auditor.

Austin, Texas, Police Chief Art Acevedo announced August 9 that a criminal inquiry is underway into how Austin police spent money seized in the past five years and whether they violated rules governing how such funds are to be used. Acevedo, who has been on the job less than a month, said he wants to look closely at several payments made from the millions of dollars seized by the department during that period.

The probe comes after the Austin American-Statesman reviewed thousands of transactions obtained under Texas open public records laws. The review found that much of the money was spent on vehicle maintenance, training, and equipment purchases, but not all of it. Other spending included:

• $13,000 in college tuition for a police commander.
• $12,025 in October 2002 for an awards banquet.
• $3,314 for clothing for the department's running team in November 2005.
• $1,895 in May 2005 for a "race clock."
• $625 in October 2001 for coffee mugs.

Austin police -- busted?

Both the state of Texas and the federal Justice Department have rules regarding how seized funds may be spent. The feds, for instance, bar funds from being used to pay salaries or supplant existing funding or from spending such funds before they are actually received. Texas law says that money can be used for salaries, overtime, officer training and investigative equipment and supplies. Other items may be bought with state funds only if used by officers in "direct law enforcement duties."

Acevedo said he had hoped to reveal the results of an internal investigation last week, but that was derailed when it morphed into a criminal investigation.