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(footsteps)
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(electricity buzz)
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♪ ♪
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VAN ZELLER:
California is the epicenter of
a massive social experiment,
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legalized marijuana.
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♪ Theres not many
roads left to follow ♪ ♪
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VAN ZELLER:
Supporters claimed it would
rein in the world's largest
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marijuana black market
or crush it all together.
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♪ Cos you are the kind
that can't be denied ♪
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♪ Oh, I'll never let you go ♪♪
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VAM ZELLER:
But four years in, no one
could have predicted that
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legalization would have
the opposite effect,
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energizing the illicit trade
that's now three times larger
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than the legal one.
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JUAN: The black
market for weed?
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It's exploding right now, man.
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♪ ♪
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♪ Concentrate,
now concentrate,
now concentrate ♪
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♪ Now concentrate,
now concentrate,
now concentrate. ♪ ♪
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VAN ZELLER: Drive anywhere
in LA, and before long,
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I guarantee, you'll
pass by a weed shop.
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They're everywhere.
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The telltale green crosses
of weed shops are now just as
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much a part of the
landscape as the palm trees
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and taco trucks.
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♪ Ready? ♪
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♪ With the box cutters
and the machetes ♪
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♪ Level than most like
Angels smokin' dope. ♪♪
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VAN ZELLER:
But all is not what it seems.
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Tell me some of the
examples of people,
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you don't need to say
names if you don't want to,
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but people that
you've sold weed to.
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NNERG: Well, a little bit
of everybody, high and low.
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Homeless people, people that
appear to be out of their mind,
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doctors, lawyers,
rock stars, rap stars,
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you know, athletes.
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You know what I mean,
everybody knows about me.
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VAN ZELLER: Is that true?
NNERG: Yeah.
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VAN ZELLER: What do
they know you by?
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NNERG: Saying I'm
the king of $5 gram.
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I started $5 gram.
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VAN ZELLER: What's $5 gram?
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NNERG: That means that
people could smoke on a budget.
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If you didn't have
a lot of money,
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I would give you a
gram of some, you know,
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fair weed for $5.
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VAN ZELLER: Is that still
profitable for you though?
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NNERG: If you get 1,000
of them in a week, it can,
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it can make sense.
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VAN ZELLER: The man
behind the wheel, NNERG,
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is taking me to his
dispensary in South LA.
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(buzzer)
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NNERG:
Thank you, sir! Enjoy that.
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What's up, man?
Whatchu need? A gram?
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VAN ZELLER: You're
weighing everything here?
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CLERK: Yes.
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VAN ZELLER: Ah,
it's the $5 gram!
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NNERG: Yeah. It's $5 gram.
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VAN ZELLER:
Due to the hefty taxes
as high as 45% in California,
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a gram of weed can set
you back 15 to 20 bucks.
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So you might be wondering
how NNERG's dispensary can
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afford to sell weed at
such rock bottom prices.
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The answer is simple.
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So the business you're
running here is illegal?
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NNERG: Yeah, technically.
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VAN ZELLER: Get this,
four years after California
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legalized marijuana in 2016,
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up to 80% of dispensaries
in the state are
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just like NNERG's, illegal.
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(singing in spanish)
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VAN ZELLER: They're
part of a bustling $9 billion
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black market that's blossomed
in the wake of legalization.
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And I am itching to
understand how the state got
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it all so wrong.
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When you think about
illegal marijuana,
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you don't think
about dispensaries.
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People think that
they're all legal.
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BILL: After it was legalized,
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the black market
actually grew.
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Right now in California,
there are more unlicensed
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dispensaries than
licensed dispensaries.
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VAN ZELLER:
And that's what you're
going after today?
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BILL: Correct.
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VAN ZELLER: Wow.
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There's another
surveillance camera
right above the door here.
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Here's the thing about
these underground shops.
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Do you want to be licensed?
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NNERG: Yeah. Why not?
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They just got so many hurdles.
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VAN ZELLER: Many of
them wanted to go legal,
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but the path to licensing
is fraught with problems.
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MIKE: It's taxed like three
or four times the amount that
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alcohol is taxed.
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SARAH: All of the hoops
that you have to jump through.
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NNERG: We won't
have the capital,
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the licenses are too expensive.
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VAN ZELLER: It's an
entrepreneur's worst nightmare.
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Someone like NNERG
faces a minefield of
complex regulations.
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And above all,
they need cash, lots of cash.
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Often hundreds of
thousands of dollars
to pay for upfront costs,
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license fees, and rent
for an unopened storefront.
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And good luck getting a loan,
since virtually no banks will
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issue them while cannabis
remains federally illegal.
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And guess who doesn't have
access to that much capital.
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NNERG: You know, and just by
our history in this country,
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I didn't think we had
anything coming as the people.
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And I was right.
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VAN ZELLER: The same
communities that were locked
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up the most for cannabis
offenses are the ones getting
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locked out of
the legal market.
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NNERG: They're saying that
out of 187 dispensaries,
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only three of those
people are black owners.
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VAN ZELLER: In all of LA?
NNERG: Yeah.
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VAN ZELLER: Do you think
that's why so many people just
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prefer to stay
in black market?
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NNERG: Yeah,
because it's easier.
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VAN ZELLER:
Withso much money being
made in marijuana,
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they aren't about to
close up shop either.
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BILL: Right now,
the mission is basically
serve the search warrant,
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seize all cannabis and
all the ill‐gotten gains.
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VAN ZELLER: So
the state is going after them.
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OFFICER: Police! Search warrant.
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VAN ZELLER: And using a
portion of the tax revenues
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from legal sales to bust
many people who would love
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to be paying taxes.
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NNERG: You'll spend more
money locking me up than
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I probably made.
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VAN ZELLER:
While crackdowns from
cops are on the rise.
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Today, you guys busted three
of these illegal dispensaries.
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How many more do you
think there are out there?
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BILL: Thousands, thousands.
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VAN ZELLER: Robberies and
break‐ins are rising too.
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REPORTER: Armed and violent.
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Putting a gun to the
neck of an employee.
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Points the gun
right in her face.
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Grabbing several thousand
dollars' worth of cash out
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of the till.
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NNERG: I've had a robbery
attempt where I had to fight
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the guys off with a gun.
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I had people come
through the ceiling,
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come through the walls,
come through the doors.
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VAN ZELLER: That's why you
have the surveillance cameras
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here as well?
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NNERG: Yeah. Yeah.
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REPORTER:
Suddenly, a man outside
rushes in and opens fire.
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One woman is killed,
a man is wounded.
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TOBY: I've been armed robbed,
home‐invaded, burglarized.
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VAN ZELLER: Really?
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TOBY: I've been tied up,
left naked, zip tied.
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VAN ZELLER: No, really?
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TOBY: Yeah. Oh, yeah.
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VAN ZELLER:
What's crazy is that the
chaos swirling around
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these dispensaries is just
one of many unintended
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consequences of legalization.
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The legal supply chain is
competing with a paralleled
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universe of black market
growers and distributors.
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So who are the players
making all of this money and
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how are they getting
away with it?
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That's exactly what
I want to know.
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♪ ♪
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One of the hot spots for
growing marijuana is a place
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you'd least expect.
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The middle of the
Mojave Desert.
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How often do you
guys do these raids?
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RICH: Every week, we try
and do between three and
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twelve search warrants a week.
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VAN ZELLER: Wow, that's a lot.
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RICH: Yeah!
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VAN ZELLER:
Criminals can't grow it
fast enough to satisfy
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the high demand.
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Luckily for them,
marijuana is, well, a weed.
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With the right know how, you
can grow it almost anywhere.
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This is it?
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RICH: This is it.
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VAN ZELLER: Okay.
This is it, guys,
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just be careful,
slowly behind them.
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Yeah.
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RICH: Hit it.
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(pounding)
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OFFICER: Sheriff's
department, search warrant.
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Demand entry.
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Sheriff's department,
search warrant.
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RICH: Go ahead. Moving up.
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Clear the truck.
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OFFICER: Clear.
Take it, go, go, go, go.
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Sheriff's department,
search warrant.
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Going through the rear.
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Left center.
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VAN ZELLER: Wow,
there's a lot of plants.
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It smells.
Really strong smell.
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They're currently looking
for people they know
that they are workers here,
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people actually
living in the trailer.
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RICH: No one here.
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VAN ZELLER: So you think
they knew you guys were coming?
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RICH: They may have seen
us as we were driving in.
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We'll count the plants,
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we'll go in and
cut them all down and
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load them up in our trailer,
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and then we're
onto the next one.
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VAN ZELLER: And this is
your typical day on the job.
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RICH: This is a typical day.
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Yeah, we do this
all day every day.
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VAN ZELLER: Growing weed
used to be a felony.
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It's now a misdemeanor
with just a $500 fine.
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If you were risking it
before legalization,
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there's less cause for
concern now than ever before.
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Six gardens in this,
just this location alone.
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A street value of around
half a million dollars.
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It's created a new wild
west green rush for
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00:10:32,298 --> 00:10:34,425
the 21st century.
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♪ Give me that money,
g‐g‐give me that money ♪♪
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VAN ZELLER:
And everyone is scrambling
to get a piece of the pie.
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SHERIFF: If you're successful
at your marijuana grow,
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you stand to profit
quite handsomely.
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♪ Give me that money,
g‐g‐give me that money ♪♪
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VAN ZELLER:
The underground supply chain
works like this,
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growers from all over
the state cultivate weed
for three to four months,
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then it's harvested
and brought to the market,
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where sellers meet buyers.
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VAN ZELLER: We've been given a
GPS location where we're going
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to meet some people we don't
have a lot of information.
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00:11:18,970 --> 00:11:21,973
Still not sure what
we'll be given access to.
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I'm heading to the weed
cultivation epicenter in
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Northern California.
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An area that retains
bragging rights for growing
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some of the world's best bud.
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This is like such an idyllic
beautiful place, right?
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It's not where you'd expect
illegal stuff to be happening.
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Or maybe it is the
perfect place, actually.
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Out in these remote hills,
it's anyone's guess what's
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waiting at the
end of the road.
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Okay. So, now,
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00:11:56,090 --> 00:11:58,885
we just stop here and
wait for somebody to
come and pick us up.
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♪ ♪
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VAN ZELLER: I've been in this
situation a lot over the years,
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heading to meet a contact.
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It's a pretty secluded spot.
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00:12:28,957 --> 00:12:31,292
With no idea what
I'm walking into.
239
00:12:31,793 --> 00:12:34,545
Check this out, it says,
"Smile, you're on camera."
240
00:12:35,964 --> 00:12:37,799
Whoever is at
the end of the road tends
241
00:12:37,799 --> 00:12:39,092
to be packing heat.
242
00:12:39,092 --> 00:12:40,385
Is it here?
243
00:12:40,385 --> 00:12:42,136
Escorted by an
armed entourage.
244
00:12:42,136 --> 00:12:44,389
And generally suspicious
of our intentions.
245
00:12:46,766 --> 00:12:48,476
I think this is our guy.
246
00:12:48,893 --> 00:12:50,103
Hi.
247
00:12:52,063 --> 00:12:53,356
VAN ZELLER:
Nice to meet you too.
Thanks for having us.
248
00:12:55,316 --> 00:12:56,859
VAN ZELLER: But the
big boss man waiting for me
249
00:12:56,859 --> 00:12:58,653
defies all these expectations.
250
00:12:59,362 --> 00:13:00,780
BUDDY: Welcome, come on in.
251
00:13:00,780 --> 00:13:02,490
VAN ZELLER: So this is
your property, it's beautiful.
252
00:13:02,490 --> 00:13:06,995
BUDDY: It sure is. I'm lucky.
253
00:13:09,205 --> 00:13:11,082
VAN ZELLER: Buddy kicks
off the grand tour.
254
00:13:11,082 --> 00:13:14,085
And at a first glance,
it hits every stoner cliche
255
00:13:14,585 --> 00:13:15,795
you could think of.
256
00:13:15,795 --> 00:13:19,048
Chill vibe, eccentric
art, and of course,
257
00:13:19,048 --> 00:13:20,800
a true love of the ganja.
258
00:13:26,055 --> 00:13:27,598
BUDDY: I have been
growing my whole life since
259
00:13:27,598 --> 00:13:28,891
I was a teenager.
260
00:13:28,891 --> 00:13:30,268
You know, selling
pot in high school,
261
00:13:30,268 --> 00:13:31,561
eighths and stuff.
262
00:13:31,561 --> 00:13:33,688
But taken it seriously
for the last 12 years.
263
00:13:33,688 --> 00:13:35,273
VAN ZELLER: Has anyone ever
told you that you look exactly
264
00:13:35,273 --> 00:13:37,066
like a younger version
of "The Dude" from
265
00:13:37,066 --> 00:13:38,526
The Big Lebowski.
266
00:13:38,526 --> 00:13:39,944
BUDDY: My whole
entire life, yes.
267
00:13:39,944 --> 00:13:41,571
VAN ZELLER:
First off, there's his grow,
268
00:13:41,571 --> 00:13:42,822
inside the garage.
269
00:13:42,822 --> 00:13:46,242
BUDDY: I have 148 plants,
$360,000, I think.
270
00:13:46,242 --> 00:13:47,744
VAN ZELLER: $360,000 a year,
271
00:13:47,744 --> 00:13:49,328
if you're lucky just
from this room alone?
272
00:13:49,328 --> 00:13:50,663
BUDDY: Just from this room.
273
00:13:50,663 --> 00:13:53,207
VAN ZELLER:
And out in the backyard.
274
00:13:53,207 --> 00:13:54,333
Oh, wow.
275
00:13:54,333 --> 00:13:56,252
BUDDY: Yup.
276
00:13:56,252 --> 00:13:58,421
There's a vibration, there's
frequency that we create that
277
00:13:58,421 --> 00:14:00,798
the plants receive.
278
00:14:00,798 --> 00:14:03,176
I tell all my employees
that every tickle is a nickel.
279
00:14:03,176 --> 00:14:05,720
Touch as many
branches as you can.
280
00:14:05,720 --> 00:14:07,847
Every time you touch them,
you send them positive vibes
281
00:14:07,847 --> 00:14:10,433
and that makes more
money off of that plant.
282
00:14:10,433 --> 00:14:11,976
VAN ZELLER:
Every tickle is a nickel.
283
00:14:11,976 --> 00:14:15,521
Legalization was supposed
to grant outlaw growers like
284
00:14:15,521 --> 00:14:19,692
Buddy a five‐year grace period
to establish themselves before
285
00:14:19,692 --> 00:14:21,444
big companies
could get licensed.
286
00:14:26,157 --> 00:14:27,784
Were you excited when you
found out that it was
287
00:14:27,784 --> 00:14:29,118
going to be legalized?
288
00:14:29,118 --> 00:14:30,953
BUDDY: Not at all.
I did not want it to be legal.
289
00:14:30,953 --> 00:14:32,163
VAN ZELLER: Why not?
290
00:14:32,163 --> 00:14:35,124
BUDDY: It wasn't
protecting people like me.
291
00:14:35,124 --> 00:14:36,834
VAN ZELLER: But
the regulations undercut this
292
00:14:36,834 --> 00:14:39,045
with a loophole allowing
single growers to
293
00:14:39,045 --> 00:14:40,797
obtain multiple permits.
294
00:14:41,255 --> 00:14:43,341
BUDDY: Big business came
right in and bought up tons of
295
00:14:43,341 --> 00:14:45,927
property and really
took over the industry.
296
00:14:46,928 --> 00:14:49,472
VAN ZELLER: Smaller growers
couldn't compete at that scale,
297
00:14:49,472 --> 00:14:52,225
so only a tiny
fraction of the estimated
298
00:14:52,225 --> 00:14:56,646
60,000 outlaw growers
like Buddy has gone legal.
299
00:14:57,563 --> 00:14:59,565
BUDDY: We were all upset at
the way the law was written.
300
00:14:59,565 --> 00:15:01,484
We saw that it was just
a corporate takeover.
301
00:15:01,484 --> 00:15:02,944
VAN ZELLER: Huh.
302
00:15:02,944 --> 00:15:06,447
BUDDY: I spent $60,000 on
lawyers and permits only to
303
00:15:06,447 --> 00:15:09,283
find out there's more permits
and more hoops to jump through,
304
00:15:09,283 --> 00:15:10,827
which they didn't explain.
305
00:15:10,827 --> 00:15:12,495
VAN ZELLER: So the police
could come in here right now
306
00:15:12,495 --> 00:15:13,788
and you would have no warning
that they were coming.
307
00:15:13,788 --> 00:15:14,956
BUDDY: Exactly.
308
00:15:14,956 --> 00:15:16,040
VAN ZELLER: Have they
done that to you?
309
00:15:16,040 --> 00:15:17,542
BUDDY: Oh, yeah.
310
00:15:17,542 --> 00:15:19,043
I got raided on a 100 acre
property that I was expanding.
311
00:15:19,043 --> 00:15:20,419
Lost a quarter
million dollars.
312
00:15:20,419 --> 00:15:21,754
I lost 60 pounds of pot.
313
00:15:21,754 --> 00:15:23,464
I've lost five
pounds at a time.
314
00:15:23,464 --> 00:15:24,632
10 pounds here.
315
00:15:24,632 --> 00:15:26,217
VAN ZELLER: Hasn't that
made you think that,
316
00:15:26,217 --> 00:15:28,678
"Maybe I should continue
trying to become legal."?
317
00:15:28,678 --> 00:15:31,556
BUDDY: Not really.
I pay my taxes.
318
00:15:31,556 --> 00:15:33,224
I don't just, I just
don't pay it to the IRS.
319
00:15:42,275 --> 00:15:44,861
VAN ZELLER: Of the 60,000
estimated outlaw growers like
320
00:15:44,861 --> 00:15:49,365
Buddy, only a tiny fraction
have managed to get licensed.
321
00:15:49,657 --> 00:15:52,577
♪ My heart ♪♪
322
00:15:52,994 --> 00:15:55,288
VAN ZELLER:
Many others have dropped
out of the game entirely.
323
00:15:55,288 --> 00:15:57,290
♪ Rolls out to you ♪♪
324
00:15:57,290 --> 00:16:00,042
VAN ZELLER:
With demand for weed higher
than it's ever been,
325
00:16:00,042 --> 00:16:03,379
dangerous criminals are
rushing in to fill the void.
326
00:16:03,880 --> 00:16:05,339
Do you think there will
always be an illicit side
327
00:16:05,339 --> 00:16:06,883
of this business?
328
00:16:06,883 --> 00:16:08,759
BUDDY: So, everything in life,
there's always going to be a
329
00:16:08,759 --> 00:16:11,512
shadow in the bright light.
330
00:16:13,723 --> 00:16:16,934
VAN ZELLER:
There's one group of growers
making even more money,
331
00:16:17,518 --> 00:16:20,438
a group that few people
know about.
332
00:16:23,608 --> 00:16:25,318
YU: Good Morning
VAN ZELLER: Good morning.
333
00:16:25,318 --> 00:16:26,402
So this is it, huh?
334
00:16:26,402 --> 00:16:28,237
YU: This is it.
335
00:16:32,241 --> 00:16:34,035
The curtain here,
you're gonna leave it.
336
00:16:34,035 --> 00:16:37,580
And then behind that curtain,
you're going to put plywood
337
00:16:38,247 --> 00:16:39,790
VAN ZELLER: So the neighbors
outside will see the curtains.
338
00:16:39,790 --> 00:16:40,958
YU: Exactly.
339
00:16:40,958 --> 00:16:42,543
VAN ZELLER: But in fact
this is all hidden?
340
00:16:42,543 --> 00:16:43,920
YU: Correct.
341
00:16:43,920 --> 00:16:46,380
VAN ZELLER: This could be
any family's dream home.
342
00:16:46,380 --> 00:16:48,799
YU: You have water sources
everywhere, so, you know,
343
00:16:48,799 --> 00:16:51,177
watering the plants with
the water pump and timer
344
00:16:51,177 --> 00:16:52,762
would be ideal.
345
00:16:52,762 --> 00:16:55,306
VAN ZELLER: But some home
buyers have other intentions.
346
00:16:55,681 --> 00:16:58,517
YU: This is where the biggest
grow would take place.
347
00:16:59,602 --> 00:17:02,980
VAN ZELLER: Tom Yu is a former
gang detective with the LAPD.
348
00:17:02,980 --> 00:17:05,858
He's raided hundreds of
homes just like this one.
349
00:17:06,275 --> 00:17:09,028
YU: The biggest activities
of organized crimes is indoor
350
00:17:09,028 --> 00:17:11,072
marijuana grows.
351
00:17:11,739 --> 00:17:14,242
VAN ZELLER:
Here in California's
pricey real estate market,
352
00:17:14,242 --> 00:17:16,994
criminals are shopping
for homes exclusively
353
00:17:16,994 --> 00:17:18,621
to grow weed.
354
00:17:19,747 --> 00:17:21,999
YU: These groups of people,
they don't want attention.
355
00:17:21,999 --> 00:17:24,877
Their goal is to make money.
356
00:17:26,087 --> 00:17:27,588
VAN ZELLER: And how much
money can you make from an
357
00:17:27,588 --> 00:17:29,257
indoor grow like this?
358
00:17:29,257 --> 00:17:31,300
YU: Two or three
million, minimum.
359
00:17:31,300 --> 00:17:32,802
VAN ZELLER: A year?
YU: Yeah.
360
00:17:32,802 --> 00:17:33,970
VAN ZELLER: Wow,
that's a lot of money.
361
00:17:33,970 --> 00:17:35,388
YU: A lot of money.
362
00:17:35,388 --> 00:17:39,141
And the punishment is
virtually none.
363
00:17:39,141 --> 00:17:41,394
VAN ZELLER:
Lessened penalties have only
emboldened growers
364
00:17:41,394 --> 00:17:43,771
to expand operations.
365
00:17:43,771 --> 00:17:45,982
And in return,
caused law enforcement to
366
00:17:45,982 --> 00:17:48,401
expand their crackdowns.
367
00:17:49,110 --> 00:17:51,070
RICH: Well, we got several
complaints from neighbors
368
00:17:51,070 --> 00:17:52,655
about the smell
of the marijuana.
369
00:17:52,655 --> 00:17:54,073
Our guys went out there,
370
00:17:54,073 --> 00:17:55,992
heard the humming from
the equipment inside.
371
00:17:55,992 --> 00:17:57,660
VAN ZELLER: So, you're pretty
sure that there's an indoor
372
00:17:57,660 --> 00:17:59,161
marijuana grow in there?
373
00:17:59,161 --> 00:18:02,915
RICH: Yeah, my guys, they've,
they're very rarely wrong.
374
00:18:03,332 --> 00:18:04,667
VAN ZELLER: And in
terms of the approach,
375
00:18:04,667 --> 00:18:06,377
anything we should
be cautious about?
376
00:18:06,377 --> 00:18:07,878
RICH: These grows have
been getting hit with a lot
377
00:18:07,878 --> 00:18:09,338
of home invasion robberies.
378
00:18:09,338 --> 00:18:12,049
So a lot of the growers have
started to arm themselves.
379
00:18:12,049 --> 00:18:14,135
So, we always keep in
the back of our mind that
380
00:18:14,135 --> 00:18:16,053
these guys could open fire, so.
381
00:18:16,053 --> 00:18:17,346
VAN ZELLER:
Hence the body armor?
382
00:18:17,346 --> 00:18:18,848
RICH: Hence the body armor.
383
00:18:19,181 --> 00:18:21,809
VAN ZELLER:
This is police body cam
footage of officers
384
00:18:21,809 --> 00:18:25,104
executing a search warrant
on a suspected grow house in
385
00:18:25,104 --> 00:18:27,648
San Bernardino County,
outside LA.
386
00:18:28,399 --> 00:18:30,610
One example
of many, many others.
387
00:18:32,528 --> 00:18:34,405
OFFICER: Police,
stay where you are.
388
00:18:35,156 --> 00:18:37,575
In fast. Police!
389
00:18:37,575 --> 00:18:39,118
VAN ZELLER:
All across California,
390
00:18:39,118 --> 00:18:42,121
authorities are
busting multimillion
dollar marijuana grows.
391
00:18:42,788 --> 00:18:46,000
REPORTER: Hundreds of plants,
rooms are now green houses
392
00:18:46,417 --> 00:18:48,711
VAN ZELLER: Right in the middle
of residential neighborhoods.
393
00:18:48,711 --> 00:18:50,588
REPORTER: On this street
alone the sheriff's department
394
00:18:50,588 --> 00:18:53,049
identified seven
problem houses.
395
00:18:53,466 --> 00:18:56,218
YU: What the community don't
want do is have a bunch indoor
396
00:18:56,218 --> 00:18:59,347
marijuana grow in a community
where their kids play outside.
397
00:19:00,056 --> 00:19:02,433
OFFICER: They attract
robberies, assaults.
398
00:19:02,975 --> 00:19:05,645
YU: We've seen murders,
we've seen kidnappings arising
399
00:19:05,645 --> 00:19:07,855
from these type of
individual grows.
400
00:19:08,439 --> 00:19:10,816
VAN ZELLER: An average pot
grow house draws an enormous
401
00:19:10,816 --> 00:19:12,485
amount of electricity.
402
00:19:12,485 --> 00:19:14,695
REPORTER: Holes drilled in
walls for impromptu electrical
403
00:19:14,695 --> 00:19:17,406
wiring and a bypass
circuit breaker.
404
00:19:18,032 --> 00:19:20,076
VAN ZELLER: Enough to rack
up an electric bill costing
405
00:19:20,076 --> 00:19:22,745
almost $100,000 a year.
406
00:19:23,913 --> 00:19:26,957
But these criminal groups
have a workaround for that too.
407
00:19:27,416 --> 00:19:28,876
Using makeshift wiring,
408
00:19:28,876 --> 00:19:31,253
they bypass the
home's electric meter,
409
00:19:31,253 --> 00:19:34,048
allowing them to draw
power without being charged,
410
00:19:34,465 --> 00:19:36,884
and more importantly,
without drawing attention.
411
00:19:37,301 --> 00:19:39,679
OFFICER: They're paying less
power here than what would be
412
00:19:39,679 --> 00:19:41,889
in an apartment.
413
00:19:42,515 --> 00:19:45,518
VAN ZELLER: But even more
surprising is who's growing
414
00:19:45,518 --> 00:19:47,561
all of this illegal weed.
415
00:19:48,145 --> 00:19:51,482
OFFICER: We have
two Asian suspects in custody,
416
00:19:51,482 --> 00:19:53,317
they are both from China.
417
00:19:53,317 --> 00:19:54,819
VAN ZELLER: Since legalization,
418
00:19:54,819 --> 00:19:57,071
the authorities have
continued busting scores of
419
00:19:57,071 --> 00:20:00,199
grow houses operated by
Chinese syndicates.
420
00:20:01,117 --> 00:20:03,452
REPORTER: Officers arrested two
Chinese nationals at the home.
421
00:20:03,786 --> 00:20:07,957
YU: I would say 99.9% of
all indoor grows are Chinese
422
00:20:07,957 --> 00:20:10,126
nationals or
criminal enterprises.
423
00:20:10,960 --> 00:20:13,379
REPORTER: A story
involving drugs, guns,
424
00:20:13,379 --> 00:20:15,798
millions of dollars,
and a rocket launcher.
425
00:20:16,882 --> 00:20:20,094
YU: We've seen everything
from an AR‐15, to AK‐47s,
426
00:20:20,845 --> 00:20:22,972
to your traditional
semiautomatic,
427
00:20:22,972 --> 00:20:24,515
you know, handguns.
428
00:20:24,515 --> 00:20:26,225
VAN ZELLER:
They fly the workers over,
429
00:20:26,225 --> 00:20:28,561
put them up in a
newly purchased home,
430
00:20:28,561 --> 00:20:31,564
and task them with
growing weed until their debt
431
00:20:31,564 --> 00:20:33,566
is paid off.
432
00:20:33,566 --> 00:20:36,360
RICH: They're working off
almost indentured servitude.
433
00:20:36,360 --> 00:20:38,738
VAN ZELLER: And when the people
at the bottom are busted,
434
00:20:38,738 --> 00:20:42,158
the top dogs simply
move on to the next one.
435
00:20:42,616 --> 00:20:45,953
YU: Unfortunately,
90% of apprehensions do not
436
00:20:45,953 --> 00:20:48,205
involve the people on top.
437
00:20:48,205 --> 00:20:49,749
They're insulated.
438
00:20:49,749 --> 00:20:51,584
VAN ZELLER: Do you think these
places will keep popping up?
439
00:20:51,584 --> 00:20:53,210
YU: 100%.
440
00:20:53,210 --> 00:20:56,547
If your demand is
higher in a post‐legalized
marijuana world.
441
00:20:57,256 --> 00:20:58,799
So where does the
supply come from?
442
00:20:58,799 --> 00:21:01,594
It comes from dispensaries,
or these type of engagements.
443
00:21:02,261 --> 00:21:03,888
VAN ZELLER:
The criminal underworld.
444
00:21:03,888 --> 00:21:05,723
YU: Correct.
445
00:21:10,060 --> 00:21:12,062
VAN ZELLER:
Although the Chinese
gangs are big players,
446
00:21:12,062 --> 00:21:15,566
I want to see how the
biggest ones operate.
447
00:21:17,610 --> 00:21:20,446
I'm told the biggest black
market growers are also not
448
00:21:20,446 --> 00:21:23,574
from the United States.
449
00:21:23,574 --> 00:21:25,826
They are the Mexican cartels.
450
00:21:25,826 --> 00:21:28,037
And they're growing in
our national forests.
451
00:21:37,129 --> 00:21:39,173
VAN ZELLER: You may
think of the Mexican cartels as
452
00:21:39,173 --> 00:21:41,759
smuggling weed
over the border,
453
00:21:41,759 --> 00:21:44,345
the truth is they're
planting it right here
454
00:21:44,345 --> 00:21:46,680
in American soil.
455
00:21:47,097 --> 00:21:49,350
Ironically, legalization
has created a kind of
456
00:21:49,350 --> 00:21:52,102
safe haven for them
to operate in California.
457
00:21:54,313 --> 00:21:58,275
We're heading to an
area where cops are finding
a lot of cartel grows,
458
00:21:58,275 --> 00:22:00,694
where land is free and abundant.
459
00:22:03,447 --> 00:22:04,949
Our national forests.
460
00:22:05,282 --> 00:22:08,869
♪ When you are near me ♪♪
461
00:22:09,411 --> 00:22:11,997
VAN ZELLER:
They're literally just picking
up and dropping two guys
462
00:22:11,997 --> 00:22:14,291
at a time into the field,
into the mountains there.
463
00:22:27,388 --> 00:22:30,140
VAN ZELLER:
Nowadays, if you head out
for a hike,
464
00:22:30,933 --> 00:22:34,603
you might just wander
into a multimillion
dollar drug operation.
465
00:22:38,816 --> 00:22:40,609
OFFICER: Okay.
466
00:22:42,695 --> 00:22:45,281
Do not drive forward in
the (inaudible) okay?
467
00:22:46,657 --> 00:22:49,034
(overlapping chatter)
468
00:22:49,034 --> 00:22:50,619
RICH: Okay.
469
00:22:50,870 --> 00:22:54,373
People don't bring their kids
out here anymore because they
470
00:22:54,373 --> 00:22:57,877
ran into cartel members
with guns and they just were
471
00:22:57,877 --> 00:22:59,628
fearful for their safety.
472
00:23:02,464 --> 00:23:04,341
VAN ZELLER: Oh, wow!
473
00:23:04,675 --> 00:23:06,927
RICH: So with all these plants
standing up under this cover,
474
00:23:06,927 --> 00:23:09,096
it's pretty much a
little forest in here.
475
00:23:09,096 --> 00:23:11,056
VAN ZELLER: And who's coming
out here and growing this?
476
00:23:11,056 --> 00:23:14,476
RICH: All of the forest grows
that I've encountered have all
477
00:23:14,476 --> 00:23:15,853
been Mexican nationals,
478
00:23:15,853 --> 00:23:17,771
I've never seen anyone
other than Mexican nationals
479
00:23:17,771 --> 00:23:19,607
in the forest.
480
00:23:19,607 --> 00:23:22,151
VAN ZELLER: It's estimated
that at least 40% of all of
481
00:23:22,151 --> 00:23:25,154
California's black
market weed is growing on
482
00:23:25,154 --> 00:23:27,656
public lands just like this.
483
00:23:28,365 --> 00:23:30,910
RICH: So you see this
bottle right here, carbofuran.
484
00:23:30,910 --> 00:23:32,411
The skull and crossbones,
485
00:23:32,411 --> 00:23:34,455
this has been banned in
the United States because
486
00:23:34,455 --> 00:23:35,664
it's so toxic.
487
00:23:35,664 --> 00:23:37,541
VAN ZELLER: They leave
in their wake a trail of
488
00:23:37,541 --> 00:23:39,460
environmental damage,
489
00:23:39,460 --> 00:23:41,629
dead animals,
and toxic chemicals.
490
00:23:42,296 --> 00:23:44,340
This is to stop the animals
from eating the plants or
491
00:23:44,340 --> 00:23:45,466
destroying the grow?
492
00:23:45,466 --> 00:23:46,842
RICH: Yeah. Yeah.
493
00:23:46,842 --> 00:23:48,969
They'll mix that carbofuran
into the water supply.
494
00:23:48,969 --> 00:23:51,096
And it's so toxic that
about a quarter teaspoon will
495
00:23:51,096 --> 00:23:52,932
kill a black bear.
496
00:23:52,932 --> 00:23:54,934
So if we got a good dose
of that, we're gonna die.
497
00:23:55,976 --> 00:23:58,062
VAN ZELLER: Even with all of
this stepped up enforcement,
498
00:23:58,062 --> 00:24:00,856
the authorities are
only able to eradicate 20%
499
00:24:00,856 --> 00:24:02,399
of the state's harvest.
500
00:24:03,192 --> 00:24:05,110
RICH: This is a good vantage
point to just look out over
501
00:24:05,110 --> 00:24:07,571
the valley and see all the
different marijuana grows.
502
00:24:07,571 --> 00:24:08,906
One there.
503
00:24:08,906 --> 00:24:10,908
One right there.
Another back there.
504
00:24:10,908 --> 00:24:12,076
VAN ZELLER:
Oh, my god.
505
00:24:12,076 --> 00:24:13,452
They're not even
trying to hide.
506
00:24:13,452 --> 00:24:15,746
Are they dangerous?
Are they armed usually?
507
00:24:15,746 --> 00:24:17,164
RICH: They are definitely armed.
508
00:24:17,164 --> 00:24:19,208
We've had hikers and hunters
get guns pulled on them.
509
00:24:19,208 --> 00:24:22,127
And we've had people
get snatched up.
510
00:24:22,711 --> 00:24:25,005
REPORTER:
The raids have found
growers that are heavily armed.
511
00:24:25,005 --> 00:24:28,509
A game warden got shot through
both legs with an AK 47.
512
00:24:28,509 --> 00:24:30,719
SOLDIER: Don't move.
Stay down! Stay down.
513
00:24:30,719 --> 00:24:32,680
REPORTER (over TV):
Shocking twist in the
murder of an El Dorado
514
00:24:32,680 --> 00:24:34,181
County Sheriff's deputy.
515
00:24:34,181 --> 00:24:36,141
VAN ZELLER:
The huge massive amount
of product and cash
516
00:24:36,141 --> 00:24:39,645
being generated by these
operations has led to violence.
517
00:24:39,645 --> 00:24:42,773
WOMAN: It's just getting
really concerning and scary.
518
00:24:42,773 --> 00:24:45,025
SHERIFF: To say that the
California laws that have been
519
00:24:45,025 --> 00:24:47,194
passed are gonna be
able to adequately deal with
520
00:24:47,194 --> 00:24:49,905
this situation is a fallacy.
521
00:24:50,864 --> 00:24:54,159
VAN ZELLER: The profits
from illegal weed growing
on our public lands,
522
00:24:54,159 --> 00:24:56,495
is helping the
cartels pay for all manner
523
00:24:56,495 --> 00:24:58,122
of sinister operations.
524
00:24:58,372 --> 00:25:00,499
MAN: The single biggest source
of the money for the guys with
525
00:25:00,499 --> 00:25:02,418
the horrific violence along
the border on the Mexican side
526
00:25:02,418 --> 00:25:05,254
and now our side now are
making it from marijuana.
527
00:25:15,222 --> 00:25:19,935
♪ ♪
528
00:25:23,397 --> 00:25:25,149
VAN ZELLER: No
matter if it's Mexican cartels,
529
00:25:25,149 --> 00:25:28,819
Chinese home growers,
or outlaws like Buddy,
530
00:25:29,820 --> 00:25:32,448
the most dangerous part of
the game is the next link
531
00:25:32,448 --> 00:25:34,450
in the supply chain.
532
00:25:35,242 --> 00:25:36,744
Distribution.
533
00:25:37,327 --> 00:25:39,413
When millions of dollars
of product and cash
534
00:25:39,413 --> 00:25:41,749
are in the same location
at the same time.
535
00:25:50,591 --> 00:25:52,217
So do you think they're
catering for the weed
536
00:25:52,217 --> 00:25:53,594
businesses around here?
537
00:25:53,594 --> 00:25:55,262
SARAH: Oh, for sure.
538
00:25:55,262 --> 00:25:57,931
The distro that I work out
of, there's people selling
539
00:25:57,931 --> 00:26:00,893
hundreds of pounds a day
in that one location.
540
00:26:02,519 --> 00:26:05,189
VAN ZELLER: I'm meeting a
contact in an area she says is
541
00:26:05,189 --> 00:26:09,610
the distribution epicenter of
the state's multi‐billion dollar
542
00:26:09,610 --> 00:26:11,361
black market.
543
00:26:11,361 --> 00:26:14,656
Ironically, this few blocks in
downtown LA where it all goes
544
00:26:14,656 --> 00:26:17,951
down is just around the corner
from the hall of justice.
545
00:26:18,619 --> 00:26:20,788
SARAH: People that I meet
all the time in business are
546
00:26:20,788 --> 00:26:24,083
telling me that they
have distros downtown.
547
00:26:24,333 --> 00:26:26,210
VAN ZELLER: Sarah's
what you call a small fish.
548
00:26:26,794 --> 00:26:29,880
She works as a trimmer inside
distribution warehouses
549
00:26:29,880 --> 00:26:31,381
in this area.
550
00:26:31,381 --> 00:26:34,551
Some legal, and some not,
so we're hiding her identity.
551
00:26:35,260 --> 00:26:37,346
SARAH: We're going
to meet George,
552
00:26:37,346 --> 00:26:39,640
who is a big player
in this industry.
553
00:26:40,307 --> 00:26:43,143
He has several distributions
moving millions of dollars a
554
00:26:43,143 --> 00:26:44,937
day of product.
555
00:26:44,937 --> 00:26:46,313
VAN ZELLER: That's right.
556
00:26:46,313 --> 00:26:48,524
$1 million a day.
557
00:26:48,524 --> 00:26:50,526
This is the big leagues.
558
00:26:50,526 --> 00:26:52,820
But even with so
much on the line,
559
00:26:52,820 --> 00:26:56,949
her contact has agreed,
reluctantly, to meet with me.
560
00:26:57,741 --> 00:26:59,493
I know that you've been
trying to help us get access
561
00:26:59,493 --> 00:27:00,702
to this world.
562
00:27:00,702 --> 00:27:02,121
How long have you been
trying to convince him?
563
00:27:02,121 --> 00:27:03,956
SARAH: For about two months.
564
00:27:03,956 --> 00:27:06,125
VAN ZELLER:
Has George made
any requests in terms of what
565
00:27:06,125 --> 00:27:07,876
we can and cannot film?
566
00:27:07,876 --> 00:27:10,629
SARAH: Yeah, a
pre‐mixed vocal changer.
567
00:27:10,921 --> 00:27:12,631
VAN ZELLER: So not only does
he want us to distort his
568
00:27:12,631 --> 00:27:15,092
voice once this episode airs,
569
00:27:15,384 --> 00:27:17,469
he also wants to distort
his voice immediately.
570
00:27:17,469 --> 00:27:19,263
SARAH: Exactly.
571
00:27:19,263 --> 00:27:20,806
VAN ZELLER: That's the
first time we've ever
been asked to do that.
572
00:27:20,806 --> 00:27:23,100
SARAH: Yeah, people
are scared in this industry.
573
00:27:31,525 --> 00:27:32,734
VAN ZELLER: Okay.
574
00:27:48,959 --> 00:27:55,299
♪ ♪
575
00:27:58,051 --> 00:28:01,930
(sirens)
576
00:28:03,181 --> 00:28:05,726
VAN ZELLER: This is sort of a
distribution center for weed?
577
00:28:18,405 --> 00:28:20,073
VAN ZELLER: I found my
way inside a distribution
578
00:28:20,073 --> 00:28:23,994
warehouse in LA, in an area
considered the heart of the
579
00:28:23,994 --> 00:28:25,621
marijuana black market.
580
00:28:35,255 --> 00:28:41,094
♪ ♪
581
00:28:43,931 --> 00:28:45,891
VAN ZELLER: One of
the big players in that world.
582
00:28:45,891 --> 00:28:48,727
Someone I'm told moves more
than $1 million worth of
583
00:28:48,727 --> 00:28:51,605
product daily, has
agreed to meet me.
584
00:28:53,857 --> 00:28:55,651
Well, kind of.
585
00:28:57,319 --> 00:28:58,403
Okay. We ready?
586
00:28:58,403 --> 00:28:59,738
GEORGE: Yeah.
587
00:28:59,738 --> 00:29:03,158
VAN ZELLER: So I'm
currently in an empty room and
588
00:29:03,158 --> 00:29:07,079
in front of a table with
nine pounds of all sorts of
589
00:29:07,079 --> 00:29:08,455
different kinds of weed.
590
00:29:08,789 --> 00:29:10,916
George, I'm just explaining
what's happening to the camera
591
00:29:10,916 --> 00:29:12,334
because it feels really
weird that it's just me here,
592
00:29:12,334 --> 00:29:13,502
so I'm just explaining.
593
00:29:13,502 --> 00:29:15,003
GEORGE: Yeah. Yeah.
594
00:29:15,003 --> 00:29:17,172
VAN ZELLER:
George didn't
want his actual voice recorded.
595
00:29:17,172 --> 00:29:19,549
George is actually
out of view.
596
00:29:21,301 --> 00:29:23,470
Didn't feel comfortable
being on camera.
597
00:29:23,470 --> 00:29:25,263
But he can hear me
because of my mic.
598
00:29:25,597 --> 00:29:27,724
So we're using a voice
changer that alters it
599
00:29:27,724 --> 00:29:29,101
while he speaks.
600
00:29:29,101 --> 00:29:31,144
If I were a buyer,
I would come in here,
601
00:29:31,144 --> 00:29:33,814
you'd have all
these bags out here with
the different samples.
602
00:29:33,814 --> 00:29:35,524
They look at it, smell it.
603
00:29:35,524 --> 00:29:36,692
GEORGE: Yeah. Yeah.
604
00:29:36,692 --> 00:29:37,693
VAN ZELLER: Possibly try it.
Smoke it.
605
00:29:45,283 --> 00:29:46,910
VAN ZELLER:
And then they place orders.
Is that it?
606
00:29:46,910 --> 00:29:48,537
GEORGE: Yeah.
607
00:29:48,537 --> 00:29:50,622
VAN ZELLER: On the
table is a variety of high‐end,
608
00:29:50,622 --> 00:29:53,291
exotic indoor
and outdoor weed.
609
00:29:53,291 --> 00:29:57,921
Each pound bag costs
between $2,000 and $4,000.
610
00:29:58,797 --> 00:30:00,132
What's the largest order
you've ever received?
611
00:30:00,507 --> 00:30:02,217
GEORGE: I mean...
612
00:30:05,637 --> 00:30:09,349
VAN ZELLER:
Just one order that size is
worth around $1 million.
613
00:30:10,517 --> 00:30:12,436
How much money is there to
be made in illegal weed?
614
00:30:21,611 --> 00:30:23,321
VAN ZELLER:
I decide not to push it.
615
00:30:23,947 --> 00:30:27,451
So, George, you operate just
as a black market business or
616
00:30:27,451 --> 00:30:29,244
do you operate also
in legal business?
617
00:30:31,663 --> 00:30:33,040
VAN ZELLER:
A licensed as well.
618
00:30:33,290 --> 00:30:35,792
If you were to give me a
general sense of how much
619
00:30:35,792 --> 00:30:39,171
money you make with your legal
versus your illegal business,
620
00:30:39,546 --> 00:30:41,089
what would you say?
621
00:30:47,012 --> 00:30:48,180
VAN ZELLER: Wow.
622
00:31:09,534 --> 00:31:11,536
VAN ZELLER: So why operate a
legal business if you're not
623
00:31:11,536 --> 00:31:12,996
even making any
money out of that?
624
00:31:28,053 --> 00:31:29,596
VAN ZELLER: You know, you
don't feel comfortable with
625
00:31:29,596 --> 00:31:31,056
even being in the same room;
626
00:31:31,056 --> 00:31:34,726
why do you think there is
so much fear and mistrust?
627
00:31:46,738 --> 00:31:48,031
VAN ZELLER:
Do you carry a gun?
628
00:32:09,886 --> 00:32:12,139
VAN ZELLER: Okay.
So I think we're close guys.
629
00:32:14,266 --> 00:32:18,353
Getting people to talk
to us has been insanely hard
but we got sent a location,
630
00:32:18,353 --> 00:32:20,689
somewhere downtown
where we're going to
631
00:32:20,689 --> 00:32:22,440
meet with someone.
632
00:32:22,440 --> 00:32:24,401
Not entirely sure who yet.
633
00:32:24,401 --> 00:32:27,154
Unlike George, who operates
on both sides of the law,
634
00:32:27,154 --> 00:32:30,657
I'm told that this new contact
runs a distribution warehouse
635
00:32:30,657 --> 00:32:34,286
that is 100% illegal,
it's known as a trap house
636
00:32:34,286 --> 00:32:36,496
and it's just
a few blocks away.
637
00:32:36,830 --> 00:32:38,874
Oh, here, is it here?
638
00:32:39,374 --> 00:32:41,293
But the only other
information I'm given is
639
00:32:41,293 --> 00:32:43,170
where to meet him.
640
00:32:44,171 --> 00:32:46,506
Kind of looks like a,
just a parking structure.
641
00:32:54,598 --> 00:32:57,350
At first glance, there's
nothing out of the ordinary.
642
00:32:59,853 --> 00:33:02,230
Are we sure this
is the right place?
643
00:33:03,565 --> 00:33:06,776
But once we reach the top,
I can't believe my eyes.
644
00:33:17,245 --> 00:33:21,374
(sirens)
645
00:33:29,090 --> 00:33:31,092
(sirens and horns)
646
00:33:33,803 --> 00:33:35,430
VAN ZELLER: I'm
meeting a contact who supposedly
647
00:33:35,430 --> 00:33:38,558
operates a trap house
selling bulk purchases in
648
00:33:38,558 --> 00:33:40,352
the weed black market.
649
00:33:40,769 --> 00:33:42,145
This is very strange.
650
00:33:42,145 --> 00:33:44,522
It turns out this
location is more than just
651
00:33:44,522 --> 00:33:45,815
a meeting point.
652
00:33:47,442 --> 00:33:49,319
They're looking at us.
653
00:33:49,319 --> 00:33:51,154
I would put cameras down.
654
00:33:51,488 --> 00:33:53,657
It's the trap house itself.
655
00:33:53,657 --> 00:33:55,283
Hi, how are you?
Mariana. Nice to meet you.
656
00:33:55,283 --> 00:34:00,664
(overlapping chatter).
657
00:34:03,917 --> 00:34:06,378
VAN ZELLER: Right there, at
the top of this random parking
658
00:34:06,378 --> 00:34:08,421
garage in downtown LA,
659
00:34:08,421 --> 00:34:11,549
they're dealing millions of
dollars' worth of illegal weed.
660
00:34:15,720 --> 00:34:17,514
CASPER: You're more
beautiful than I thought.
661
00:34:17,514 --> 00:34:19,641
VAN ZELLER: Oh, thank you.
You're making me blush
right off the bat.
662
00:34:19,641 --> 00:34:21,017
CASPER: I might have to ask,
663
00:34:21,017 --> 00:34:22,394
I might have to
ask you out on a date.
664
00:34:22,394 --> 00:34:23,520
VAN ZELLER: Depends on how
you answer my questions.
665
00:34:23,520 --> 00:34:24,688
CASPER: Oh, okay. Okay.
666
00:34:24,688 --> 00:34:26,231
VAN ZELLER: Wait,
so this is your place?
667
00:34:26,231 --> 00:34:27,983
CASPER: Uh, maybe.
668
00:34:29,943 --> 00:34:32,529
VAN ZELLER: Their operation
is so brazenly out in the open,
669
00:34:32,529 --> 00:34:34,239
that I'm amazed they
can pull it off.
670
00:34:35,073 --> 00:34:36,950
CASPER: So, yo, why are
you doing this though?
671
00:34:36,950 --> 00:34:38,034
For real?
672
00:34:38,034 --> 00:34:39,119
VAN ZELLER: Why am I doing this?
673
00:34:39,119 --> 00:34:40,245
CASPER: Yeah.
And are you the cops?
674
00:34:40,245 --> 00:34:41,371
VAN ZELLER:
No, I am not the cops.
675
00:34:41,371 --> 00:34:42,914
CASPER: Are you, are
you, are you DEA?
676
00:34:42,914 --> 00:34:44,291
VAN ZELLER: No, I'm not DEA.
677
00:34:44,291 --> 00:34:45,542
But as we talk,
678
00:34:45,542 --> 00:34:48,128
they lay out the upside
to a location like this.
679
00:34:48,670 --> 00:34:49,879
So you sell.
680
00:34:49,879 --> 00:34:51,589
Is this sort of like
a distribution center?
681
00:34:51,589 --> 00:34:54,134
CASPER: This business is
based on a black market model.
682
00:34:54,926 --> 00:34:56,678
We're a trap.
683
00:34:56,678 --> 00:34:58,138
You know what I mean?
684
00:34:58,138 --> 00:34:59,973
A glorified trap house.
685
00:35:01,224 --> 00:35:04,436
VAN ZELLER: It's kind of
like the Costco for weed.
686
00:35:04,436 --> 00:35:08,481
Ample parking, bulk purchases,
and lots of free samples.
687
00:35:09,858 --> 00:35:10,984
So people come in here.
688
00:35:10,984 --> 00:35:12,569
And that's what we're seeing?
689
00:35:12,569 --> 00:35:14,279
These customers coming up here
and buying weed from you guys?
690
00:35:14,279 --> 00:35:16,615
CASPER:
Yeah, they come in and they
donate their funds and capital.
691
00:35:16,615 --> 00:35:19,951
And they get to leave with some
great flowers and products.
692
00:35:20,535 --> 00:35:22,871
VAN ZELLER:
Weed grown all over California.
693
00:35:22,871 --> 00:35:25,540
By outlaws like Buddy,
the Mexican cartels,
694
00:35:25,540 --> 00:35:27,125
the Chinese syndicates,
695
00:35:27,125 --> 00:35:29,252
it all ends up moving
through an underground
696
00:35:29,252 --> 00:35:30,879
distro just like this.
697
00:35:31,755 --> 00:35:33,715
How much money do you think
is made here every day?
698
00:35:33,715 --> 00:35:36,051
CASPER: Um, it pays the bills.
699
00:35:36,635 --> 00:35:38,470
Pays the bills.
700
00:35:38,470 --> 00:35:40,597
VAN ZELLER:
I mean, it does more than
just pay the bills, I assume?
701
00:35:40,597 --> 00:35:42,682
CASPER: What would you
say, what we're doing?
702
00:35:42,682 --> 00:35:44,267
MAN: 700,000 a week.
703
00:35:45,060 --> 00:35:46,394
VAN ZELLER: 700,000 a week?
704
00:35:46,394 --> 00:35:48,063
No.
705
00:35:48,063 --> 00:35:49,981
CASPER: I mean,
this is a billion dollar
industry, so, you know,
706
00:35:49,981 --> 00:35:52,108
I'm just somebody getting
a little piece of the pie.
707
00:35:52,108 --> 00:35:53,818
You know, a little
small piece.
708
00:35:54,110 --> 00:35:55,779
VAN ZELLER: Their shelves
are stocked with the bags
709
00:35:55,779 --> 00:35:57,781
of what looks like
brand‐named marijuana.
710
00:35:58,865 --> 00:36:01,910
Some of the
same kinds that I've seen
sold at legal dispensaries.
711
00:36:03,161 --> 00:36:04,871
We have no way to confirm.
712
00:36:04,871 --> 00:36:06,623
But they swear
it's the real deal.
713
00:36:07,332 --> 00:36:10,126
And if it is, then buyers are
getting some of the world's
714
00:36:10,126 --> 00:36:14,089
best weed without having to
pay a cent of those hefty taxes.
715
00:36:15,423 --> 00:36:18,385
So the weed that you sell here,
where does it go?
716
00:36:18,385 --> 00:36:20,303
CASPER: I really don't know.
717
00:36:20,303 --> 00:36:22,138
I don't, I don't, I
don't ask any questions.
718
00:36:22,138 --> 00:36:24,265
VAN ZELLER: I mean,
if they're buying this amount,
719
00:36:24,265 --> 00:36:26,059
all these pounds,
they're probably going
and reselling it, right?
720
00:36:26,059 --> 00:36:28,395
CASPER: Yeah.
The black market businesses,
that's what you do.
721
00:36:28,395 --> 00:36:29,854
You buy tennis
shoes at one price,
722
00:36:29,854 --> 00:36:31,648
and you flip it and sell
it for another price.
723
00:36:31,648 --> 00:36:33,483
VAN ZELLER:
In the supply chain,
724
00:36:33,483 --> 00:36:36,069
think of it as the place that
dealers go to get their weed
725
00:36:36,069 --> 00:36:38,697
in bulk before selling it
to individual consumers.
726
00:36:40,448 --> 00:36:42,575
Do you guys, because
we were able to pretty much
727
00:36:42,575 --> 00:36:43,618
just drive up.
728
00:36:43,618 --> 00:36:44,953
Do you guys have lookouts?
729
00:36:44,953 --> 00:36:46,371
Do you have people knowing
who comes in and out?
730
00:36:46,371 --> 00:36:47,455
CASPER: Yeah. I mean, there's a,
731
00:36:47,455 --> 00:36:49,124
there's a strategic
system in place.
732
00:36:49,124 --> 00:36:51,000
VAN ZELLER: Is that your
security guard behind you?
733
00:36:51,000 --> 00:36:52,419
CASPER: No.
734
00:36:52,419 --> 00:36:54,421
VAN ZELLER: This guy stands,
with the gun behind you?
735
00:36:54,421 --> 00:36:56,047
CASPER: That's not a gun.
VAN ZELLER: That's what?
CASPER: That's not a gun.
736
00:36:56,047 --> 00:36:58,466
VAN ZELLER: That's not a gun?
What is it?
737
00:36:58,466 --> 00:37:01,136
CASPER: I don't know.
VAN ZELLER: Okay.
738
00:37:02,971 --> 00:37:04,389
CASPER: I can be
honest with you though.
739
00:37:04,389 --> 00:37:06,391
VAN ZELLER: Please.
CASPER: I got things around.
740
00:37:06,391 --> 00:37:08,643
And if there's a problem,
somebody's going to be
741
00:37:08,643 --> 00:37:10,395
attentive to it, for real.
742
00:37:10,812 --> 00:37:13,773
VAN ZELLER: Got it. Okay.
I won't ask you again then.
743
00:37:14,274 --> 00:37:16,067
CASPER: Aw, you're so sweet.
744
00:37:16,067 --> 00:37:17,318
I knew you were sweet.
745
00:37:17,318 --> 00:37:19,154
I'm about to get that
date, I'm telling you.
746
00:37:19,154 --> 00:37:22,699
VAN ZELLER:
I asked if I can
talk to any of the buyers,
747
00:37:22,991 --> 00:37:25,869
but he's not willing to risk
losing a potential client.
748
00:37:26,703 --> 00:37:29,581
Do you, would you
want to be legalized?
749
00:37:29,581 --> 00:37:31,291
Would you want to run a
legal operation, if you could?
750
00:37:31,291 --> 00:37:32,584
CASPER: Yeah.
751
00:37:32,584 --> 00:37:33,835
VAN ZELLER: Or do you
prefer the black market?
752
00:37:33,835 --> 00:37:35,628
CASPER: No, I'd rather go legal.
753
00:37:35,628 --> 00:37:37,505
VAN ZELLER:
So, what do you think would
happen to you if you got caught?
754
00:37:47,557 --> 00:37:49,225
VAN ZELLER: Why do you
say it's a risky business?
755
00:37:49,225 --> 00:37:51,686
CASPER: Because firepower.
756
00:37:52,520 --> 00:37:53,813
VAN ZELLER: Hmm. Guns.
757
00:37:53,813 --> 00:37:56,191
CASPER: Right now, you know,
its jungle rules.
758
00:37:56,191 --> 00:37:57,776
You know, the bigger dog wins.
759
00:37:58,276 --> 00:38:01,821
VAN ZELLER: Still,
after seeing the massive
size of this operation,
760
00:38:01,821 --> 00:38:04,449
the question remains,
who's buying all of this weed?
761
00:38:05,116 --> 00:38:07,118
And where is it headed?
762
00:38:14,042 --> 00:38:20,340
♪ ♪
763
00:38:22,258 --> 00:38:24,886
VAN ZELLER:
I still have one question
that I need to answer.
764
00:38:24,886 --> 00:38:27,764
So, I'm heading to
an old connection.
765
00:38:40,568 --> 00:38:43,446
So we're meeting a guy I know
here in LA that traffics guns,
766
00:38:43,446 --> 00:38:46,866
and fentanyl, and meth,
and a bunch of other drugs.
767
00:38:55,500 --> 00:38:57,961
There's police everywhere.
768
00:39:06,135 --> 00:39:08,054
Dude, I can totally
smell it from here.
769
00:39:08,054 --> 00:39:09,472
(Juan laughs)
770
00:39:09,472 --> 00:39:10,640
Right?
771
00:39:10,640 --> 00:39:12,267
JUAN: Yes, ma'am.
772
00:39:12,267 --> 00:39:13,977
VAN ZELLER: I've been all over
the state working my way
773
00:39:13,977 --> 00:39:15,979
through the supply chain.
774
00:39:15,979 --> 00:39:19,065
What I want to know is where
is all this weed going?
775
00:39:23,486 --> 00:39:24,988
So what do you
have here, Juan?
776
00:39:24,988 --> 00:39:27,073
JUAN: Got a little
bit of crystal meth.
777
00:39:27,073 --> 00:39:28,283
VAN ZELLER: Is that a pound?
778
00:39:28,283 --> 00:39:31,160
JUAN: Yeah.
It's about a pound right here.
779
00:39:31,160 --> 00:39:33,997
We got a little bit of
different types of marijuana.
780
00:39:33,997 --> 00:39:36,332
We got a little bit of
everything, you know.
781
00:39:36,332 --> 00:39:37,750
VAN ZELLER: In the ten years
that you've been in business,
782
00:39:37,750 --> 00:39:38,918
what's made you most money?
783
00:39:38,918 --> 00:39:41,671
JUAN: The marijuana.
784
00:39:42,046 --> 00:39:43,172
VAN ZELLER: Where
do you get it from?
785
00:39:43,172 --> 00:39:44,674
JUAN: Different sources.
Can't say.
786
00:39:44,674 --> 00:39:46,551
VAN ZELLER: But do you
grow it or do you buy it?
787
00:39:46,551 --> 00:39:47,802
JUAN: Yeah, we buy it in bulk.
788
00:39:47,802 --> 00:39:49,178
VAN ZELLER:
And then you package it.
789
00:39:49,178 --> 00:39:50,346
JUAN: Mm‐hmm.
790
00:39:50,346 --> 00:39:51,472
VAN ZELLER:
Is this your packaging?
791
00:39:51,472 --> 00:39:52,724
JUAN: Yes, ma'am.
792
00:39:52,724 --> 00:39:54,017
VAN ZELLER:
And then you sell it.
793
00:39:54,017 --> 00:39:55,059
JUAN: Yeah, this
right here is about an ounce.
794
00:39:55,727 --> 00:39:57,520
VAN ZELLER:
Ooh. That's so intense.
That is...
795
00:39:57,520 --> 00:39:58,938
JUAN: Yes, this is the
good stuff right here.
796
00:39:58,938 --> 00:40:00,648
(knock)
797
00:40:00,648 --> 00:40:02,567
Oh, excuse me.
I got somebody, real quick.
798
00:40:03,026 --> 00:40:04,777
VAN ZELLER: Is it a client?
JUAN: Yes.
VAN ZELLER: Customer?
799
00:40:04,777 --> 00:40:06,654
JUAN: Yes, ma'am.
Come on in, guys.
800
00:40:06,654 --> 00:40:08,239
MAN: How are you, brother?
JUAN: Pretty good. Pretty good.
801
00:40:08,239 --> 00:40:10,325
VAN ZELLER: Hi, how are you?
MAN: All right.
802
00:40:10,325 --> 00:40:11,951
JUAN: I hope you
guys don't mind,
803
00:40:11,951 --> 00:40:13,786
I'm doing a little
documentary in here.
804
00:40:13,786 --> 00:40:15,580
VAN ZELLER: Hi, Mariana.
MAN: Yeah. Yeah.
JUAN: But we Good. We good.
805
00:40:15,580 --> 00:40:17,415
VAN ZELLER: Obviously,
you guys are covered already.
So, you know.
806
00:40:17,415 --> 00:40:19,083
MAN: It's that COVID.
We gotta be like this.
807
00:40:19,375 --> 00:40:21,044
MAN 2: Right.
808
00:40:21,794 --> 00:40:22,921
MAN: Oh, yeah.
809
00:40:22,921 --> 00:40:24,213
VAN ZELLER: Uh, do
you guys live in LA?
810
00:40:24,213 --> 00:40:25,214
MEN: Nah.
811
00:40:25,214 --> 00:40:27,300
VAN ZELLER: Oh? You, where?
812
00:40:27,300 --> 00:40:29,218
MAN: We live in the
south side Brooklyn.
813
00:40:29,218 --> 00:40:31,137
MAN: We live in the, yeah.
VAN ZELLER: Where?
MAN: South side of Brooklyn.
814
00:40:31,137 --> 00:40:32,430
VAN ZELLER:
You're from New York?
815
00:40:32,430 --> 00:40:33,932
MAN: Hell yeah.
816
00:40:33,932 --> 00:40:35,558
VAN ZELLER: What,
did you come all the way to
817
00:40:35,558 --> 00:40:36,935
California to buy weed?
818
00:40:36,935 --> 00:40:40,146
MAN: Hell yeah.
VAN ZELLER: You serious?
MAN: Yeah.
819
00:40:41,105 --> 00:40:44,943
♪ Do‐do‐do‐do‐do‐do‐do ♪
820
00:40:44,943 --> 00:40:46,986
♪ This is... ♪♪
821
00:40:46,986 --> 00:40:48,905
MAN: Light that up.
822
00:40:49,572 --> 00:40:52,283
VAN ZELLER:
In fact, up to 80% of
the weed grown in
823
00:40:52,283 --> 00:40:57,205
California ends up in the hands
and the lungs of consumers
824
00:40:57,205 --> 00:40:58,831
outside the state.
825
00:40:58,831 --> 00:41:00,833
MAN: So what kind of questions
you wanted to ask me?
826
00:41:00,833 --> 00:41:02,543
VAN ZELLER: So you're going to
fly with, or do you fly or do
you drive back?
827
00:41:05,254 --> 00:41:06,798
MAN: I get it back...
VAN ZELLER: My mind is blown.
So do you fly?
828
00:41:10,802 --> 00:41:12,303
VAN ZELLER: You teleport?
MAN: Teleport.
829
00:41:12,303 --> 00:41:14,180
VAN ZELLER: That means you don't
want to answer my question?
830
00:41:14,180 --> 00:41:15,932
MAN: That means we teleport.
831
00:41:16,224 --> 00:41:17,725
VAN ZELLER: That's the
weed talking right here.
832
00:41:17,725 --> 00:41:20,478
MAN: Oh, yeah.
Yeah. Yeah. Yeah.
833
00:41:20,478 --> 00:41:24,899
♪ You held me tight,
you felt desire ♪♪
834
00:41:25,483 --> 00:41:27,860
VAN ZELLER:
Transporting weed
over state lines is a felony.
835
00:41:28,361 --> 00:41:29,988
MAN: Gotta risk it
to get the biscuit.
836
00:41:29,988 --> 00:41:31,322
You know what I'm saying?
837
00:41:31,322 --> 00:41:32,907
VAN ZELLER: Their
preferred destinations?
838
00:41:32,907 --> 00:41:34,117
JUAN: Here we go.
839
00:41:34,117 --> 00:41:36,369
VAN ZELLER: States where
weed is still illegal.
840
00:41:41,457 --> 00:41:44,002
BUDDY: They'll end up close
to East Coast or Midwest,
841
00:41:44,627 --> 00:41:46,546
Illinois, Wisconsin, Florida.
842
00:41:47,547 --> 00:41:49,340
REPORTER (over TV):
The drugs were found
inside a car being hauled
843
00:41:49,340 --> 00:41:51,676
cross country from California.
844
00:41:52,176 --> 00:41:54,303
YU: And it will go as far as
flushing New York, to Atlanta.
845
00:41:54,303 --> 00:41:56,055
REPORTER: The drugs were
headed to New Jersey.
846
00:41:58,099 --> 00:42:00,601
VAN ZELLER:
Where it sells for double,
even triple the price.
847
00:42:00,935 --> 00:42:02,603
MICKEY: Where you're really
going to make your money is in
848
00:42:02,603 --> 00:42:03,813
black market in other states.
849
00:42:03,813 --> 00:42:05,648
MAN: The marijuana
in California is about
850
00:42:05,648 --> 00:42:07,316
$1,000 a pound.
851
00:42:07,316 --> 00:42:09,986
MICKEY:
Ships it, drives it, sends it,
wherever it's illegal.
852
00:42:10,611 --> 00:42:11,904
MAN: Once you get to Alabama,
853
00:42:11,904 --> 00:42:14,157
the price may be
$3,500 per pound.
854
00:42:15,742 --> 00:42:17,118
VAN ZELLER: The
way it's transported.
855
00:42:17,118 --> 00:42:19,370
MAN: Every way
you can possibly think of.
856
00:42:19,370 --> 00:42:22,999
Air. Mail. Train. Bus. Mules.
857
00:42:22,999 --> 00:42:24,625
MAN 2: RVs.
858
00:42:24,625 --> 00:42:26,627
With the people that put it
in their luggage on airplanes.
859
00:42:26,627 --> 00:42:28,880
Grandma's driving.
860
00:42:28,880 --> 00:42:30,631
I mean, literally,
if there was camels,
861
00:42:30,631 --> 00:42:32,425
it would be camels.
862
00:42:32,425 --> 00:42:34,927
VAN ZELLER:
But I'm told if you're truly
a big player in the game,
863
00:42:36,679 --> 00:42:38,306
you're in the trucking business.
864
00:42:44,312 --> 00:42:47,815
REPORTER (over TV):
Police unloaded 500 pounds
of marijuana from a semi,
865
00:42:48,107 --> 00:42:50,401
REPORTER 2 (over TV): 60 bags
piled high with marijuana.
866
00:42:50,401 --> 00:42:52,820
REPORTER 3 (over TV):
The drug sniffing dog
pointed police to boxes of
867
00:42:52,820 --> 00:42:54,030
narcotics in the trailer.
868
00:43:00,578 --> 00:43:02,163
MICKEY: You put
on a shirt, tie,
869
00:43:02,163 --> 00:43:04,332
put a little cross in
the rearview mirror.
870
00:43:04,332 --> 00:43:06,584
And if you get pulled over
when you're driving pounds of
871
00:43:06,584 --> 00:43:07,960
weed, you just go,
872
00:43:07,960 --> 00:43:10,046
"I know that God brought
you here for a reason.
873
00:43:10,046 --> 00:43:12,423
Do you believe in our Lord
and Savior Jesus Christ?"
874
00:43:17,845 --> 00:43:20,389
VAN ZELLER: Since
2012, recreational marijuana
875
00:43:20,389 --> 00:43:23,351
legalization continues to gain
approval at the ballot box,
876
00:43:24,560 --> 00:43:25,937
one state after another.
877
00:43:26,938 --> 00:43:29,107
If California is
any indication,
878
00:43:29,107 --> 00:43:32,151
get ready for some black
market grows in your forests
879
00:43:32,610 --> 00:43:34,112
and in the house next door.
880
00:43:34,821 --> 00:43:37,448
That is if they
aren't there already.
881
00:43:37,698 --> 00:43:40,159
BUDDY: We're all black
market and we always will be.
882
00:43:40,159 --> 00:43:42,161
VAN ZELLER:
One thing seems certain.
883
00:43:42,161 --> 00:43:45,706
Until the US decides to
legalize weed nationwide.
884
00:43:45,706 --> 00:43:47,500
OFFICER: Sheriff's department,
search warrant!
885
00:43:47,500 --> 00:43:49,794
VAN ZELLER: The outlaws
will have the upper hand.
886
00:43:51,921 --> 00:43:55,341
SHAGGY: The black market will
be here as long as the legal
887
00:43:55,341 --> 00:43:57,510
market keeps screwing up.
888
00:43:58,344 --> 00:43:59,679
VAN ZELLER: Did you think that
legalization was going to
889
00:43:59,679 --> 00:44:01,681
change anything?
890
00:44:01,681 --> 00:44:03,266
RICH: I honestly thought
that, "Okay, that's it.
The marijuana team is done.
891
00:44:03,266 --> 00:44:05,017
There won't be any
need for them anymore."
892
00:44:05,017 --> 00:44:06,352
OFFICER: Sheriff's department,
search warrant!
893
00:44:06,352 --> 00:44:07,603
Search warrant.
Search warrant.
894
00:44:07,603 --> 00:44:09,021
Captioned by
Cotter Media Group.