FBI: Marijuana Union Organizer Took Bribes, Rigged Process

Discussion in 'Marijuana News' started by jainaG, Aug 30, 2015.

  1. By Chris Roberts http://www.sfweekly.com/thesnitch/2015/08/13/fbi-marijuana-union-organizer-took-bribes-rigged-process
    Aug 13, 2015
    Michael Ares/SF Weekly

    "Dan Rush, union organizer, indicted on federal charges.

    A Harley-Davidson-riding union organizer - once hailed
    as a "Superman" by the California cannabis movement - has been indicted
    on federal charges for allegedly taking bribes and rigging the union
    organizing process.

    Oakland native Dan Rush, 54, an organizer with the United Food and Commercial Workers,
    arrived on the medical marijuana scene in 2010 at a crucial moment. Via
    the union's political connections, Rush offered the emerging
    legalization movement and nascent medical marijuana industry legitimacy.


    But before a single shop had been organized, Rush took $600,000 in
    loans from a dispensary operator, money spent at Indian casinos and to
    pay local Hells Angels cell phone bills, according to an affidavit filed
    in federal court by the FBI. These loans were never repaid. Instead,
    Rush offered his creditors services, like ensuring union endorsements or
    rigging the organizing process against workers, the FBI alleges.

    Rush did not answer his cell phone Thursday morning. The UFCW's
    Washington, D.C. headquarters said in a statement released just now that
    Rush has been fired from the union.

    In the meantime, the details of the indictment - yet another local corruption investigation by the FBI - are stunning. A warrant for Rush's arrest has been issued following his indictment in federal court on August 10. It was not immediately clear Thursday if he is in custody.
    An FBI spokeswoman did not immediately return a request for comment.It's hard to overstate how central of a figure Rush has been to legal cannabis.

    Rush, recall, catapulted to fame in 2010 by organizing medical
    marijuana workers in the Bay Area, the first cannabis workers in America
    to have union cards. That same year, union affiliation helped
    legalization measure Prop. 19 earn endorsements from political leaders
    and the NAACP.

    He is also involved with the Coalition for Cannabis Policy Reform, and was until recently a member of its board. He appears to have been scrubbed from that listing as of Thursday morning.

    Here's Rush and the UFCW in 2010 at a press conference with workers
    at Oaksterdam University, announcing the union's entry into the
    industry. Appearing at this conference are also some of the witnesses
    who would build the case against him.

    Rush, who was closely involved in Measure D, the process to regulate
    medical marijuana dispensaries in Los Angeles, is also connected to
    legalization's most prominent pitchman: Lt. Gov. Gavin Newsom.


    Here's Gavin appearing on Rush's behest, giving the welcoming address
    to the annual awards dinner of the Instituto Laboral de la Raza, a
    low-income workers' group which Rush serves as treasurer.

    It appears that the case against Rush has been building for at least
    three years. Beginning in 2012, several Oakland-based dispensary
    operators - Carl Andersen, who operated a dispensary called Old
    Oaksterdam, and Martin Kaufman and Derek Peterson, who are involved with current Oakland dispensary Blum - began giving the FBI information on a bribery and union-riggng process that began in 2010.

    Details below come from recorded telephone conversations and wires
    worn by witnesses including Marc Terbeek, Rush's attorney who started
    cooperating with the FBI in January of this year, but may also be
    prosecuted.

    Rush is also accused of sending Terbeek clients in exchange for
    $110,000 in kickbacks, cash Rush used to fund union activities, like an
    annual labor dinner, as well as personal expenses and the cell phone
    bills of the Oakland Hell's Angels, according to the FBI.

    Now is as good a time as any to mention that rumors of strong ties to
    the Hells Angels, members of which including legendary leader Sonny
    Barger have been friends with Rush for years, have dogged Rush for a
    long, long time.

    According to the FBI, Rush took two cash payments totaling $600,000
    payment in 2010 from Kaufman. The cash was supposed to be a loan Rush
    would use to remodel a house near his home on West MacArthur Boulevard
    into a medical marijuana dispensary. Instead, he used the money to pay
    off an earlier private loan taken out using his house as collateral.

    Under an agreement brokered by Rush's Oakland-based attorney, Marc
    Terbeek, the cash was a loan to be repaid in January 2015. In the
    meantime, Rush would pay Kaufman $3,000 a month - interest on the loan -
    as a "consultant." IRS tax forms revealed this, but Kaufman did no
    work, according to the affidavit.

    Meanwhile, Rush also took a $51,000 interest in Andersen's future
    dispensary. Recall that at the time, Oakland was taking applications to
    expand its medical marijuana dispensaries from four to eight, and union
    membership was a way to score more points on a "merit-based"
    application.

    In 2014, Kaufman was informed that Rush would be unable to pay back
    the loan. Instead, Rush offered services in return. Specifically, he
    offered to rig the union organizing process in Las Vegas, where Kaufman
    wanted to open a dispensary, against workers and for the employer in
    Kaufman's favor.

    And to really drive the point home, Rush also informed him that the
    original cash - stemming as it did from medical marijuana, pre-2010 -
    was unclean, and any attempt to recover the loan might not go so well.
    Details from the indictment are below.
    Here's how it all fell apart: Terbeek flipped on Rush
    in January of this year, following Andersen and Kaufman going to the FBI
    in 2012 and 2013, according to the FBI.

    The fallout from all of this is just beginning. We'll update this story as we learn more.

    In a statement, a UFCW spokeswoman said that Rush had been terminated, but did not specify when."
     
  2. Thank goodness, so many bad players out there taking advantage of the legalization situation and are screwing everyone else for profit.
     
  3. let me see...
    become known as the marijuana super man CHECK!
    fuck the best job on the planet completely away CHECK!
    become known as the internet super man CHECK!


    why oh fucking WHY do people fuck this kind of thing up?! i mean come the mcfuck on already!?!?


     
  4. And these are the same people looking out for is little growers. Smh
     

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