THE ASSOCIATION FOR CONVENIENCE & FUEL RETAILING

Synthetic Drugs: Ensuring Your Entire Product Line is Legal

Office of the Attorney General for the District of Columbia

U.S. Drug Enforcement Administration

Overview • • • • • • • • • • • • • • • • • •

Tips for Storeowners & Operators Growing Epidemic Case Studies Overview - Synthetic Cannabinoids Why are they illegal? Effects Overview - Synthetic Cathinones Why are they illegal? Effects Varying Packaging & Online Sales Emerging Trends in Packaging – Vaping Emerging Trends in Packaging Packaging: What to Look Out For… Penalties for Selling Legal Consequences for Retailers Laws & Regulations Tips for Storeowners & Operators Who to Contact

Tips for Store Owners & Operators • If a person approaches your business about selling synthetic drugs, please contact local law enforcement immediately. • Do NOT attempt to distinguish between “legal” and “illegal” synthetic drugs. It is safe to assume that ALL brands and types of synthetic drugs are illegal to sell. • Even owners of properties must comply with synthetic drug laws and have an obligation to know how their tenants are operating businesses on their properties. The owners should endeavor to cooperate with law enforcement investigations to ensure that their tenants are complying with laws.

Growing epidemic in the U.S.

Growing epidemic in Washington, DC

Case Study 1

William Early, a retired police officer, owns a TV repair shop/bill pay center in Washington, DC named Aida’s Electronics. He meets a salesman selling the synthetic cannabinoid called “Bizarro.” Mr. Early is told by the salesman that “Bizarro” is a legal alternative to the illegal drug marijuana. Mr. Early then makes the business decision to sell “Bizarro” at Aida’s Electronics.

Case Study 2

A Mobil gas station and convenience store is operated by a lessee who openly stocks “Scooby Snax” and other brands of synthetic cannabinoids. After a routine inspection and warning by a DC municipal inspector, the business then begins concealing the products and selling them only upon request.

Case Study 3

Sang Leaming, a 27 year-old entrepreneur, operates a popular tobacco shop in Colorado. As part of his merchandise, he stocks over 1,000 packages of the synthetic cannabinoid “Spice,” and the packages are labeled as “not for human consumption,” “potpourri,” and “incense.”

Case Study 4

Peter Smith, an owner of multiple properties leased by different operators is informed by the DC Office of Attorney General that one of his tenants who is operating a convenience store is selling synthetic drugs out of the store.

Case Study 5

At Montopolis Grocery Store in Austin, Texas, Mehdi Ali sells drinks, food and tobacco, but he also sells synthetic cannabinoids with names like “Scooby Snax” and “Klima,” which caught the eye of state alcohol commission officials who swept through the business in November 2012.

Case Study 6

From January 2014 until May 2014, a federal investigation was conducted at two stores in Albuquerque, New Mexico – Carlos’ Smoke Shop and CJ’s Smoke Shop. A series of purchases of synthetic cannabinoids were made at the stores during that time period.

Types, effects, and warning signs

Synthetic Cannabinoids

& Synthetic Cathinones

1 2

Overview – Synthetic Cannabinoids Synthetic Cannabinoids Synthetic cannabinoids are typically sold in three- to five- gram packages in retail stores and on the Internet with various names, such as K2, Spice, herbal incense, potpourri, fake weed, Yucatan Fire, Skunk, Bizarro, and Moon Rocks. Synthetic cannabinoids are smoked in pipes, rolled cigarettes, and electronic cigarettes, as well as ingested in tea.

Most wanted: Why are they illegal? In the first half of 2015 the United States Poison Control Centers reports that there have been more than 15 synthetic cannabinoid related deaths across the United States, a 300 percent increase from 2014. In addition to the 15 deaths, Poison Control Centers have fielded more than 7,300 calls from people reporting that they or someone they know have been exposed to synthetic cannabinoids.

Overview – Effects (Cannabinoids)

Graphic courtesy of The Washington Post: https://www.washingtonpost.com/local/dc-politics/why-synthetic-drugscould-become-washingtons-next-drug-horror/2015/07/18/32530cfc-2bc8-11e5-a250-42bd812efc09_story.html

Overview – Synthetic Cathinones Synthetic Cathinones Synthetic cathinones are typically sold in the form of crystalline powder, ranging from white to light brown, in small plastic or foil packages (such as 200 and 500 milligrams). They are sold under various names, such as Ivory Wave, Vanilla Sky, Bliss, Blue Silk, Cloud 9, and White Dove. Synthetic cathinones are also marketed as bath salts, plant food, plant fertilizer, insect repellant, pond cleaner, and vacuum fresheners, and often include the label “not for human consumption”. Additionally, they are sold on the Internet and in retail stores, such as convenience stores and gas stations.

Most wanted: Why are they illegal? Bath Salts, or synthetic cathinones were originally marketed as a legal alternative to illegal stimulants like cocaine and methamphetamine. Synthetic cathinones are illegal and dangerous. In 2015, there have been 5 deaths linked to using synthetic cathinones. In addition to the associated deaths, Poison Control Centers have received nearly 500 calls from people reporting that they or someone they know have been exposed to synthetic 20 cathinones.

Overview – Effects (Cathinones)

Graphic courtesy of The Washington Post: https://www.washingtonpost.com/local/dccould-become-washingtons-next-drug-horror/2015/07/18/32530cfc-2bc8-11e5-a250-42bd812efc09_story.html

Emerging Trends in Packaging

Varying packaging

& Online sales

2 2

Varying Packaging

Varying Packaging

Varying Packaging

Varying Packaging

Emerging Trends in Packaging – Vaping • A popular means of consuming synthetic drugs, particularly synthetic cannabinoids, is using vape through an e-cigarette. • Users purchase liquid synthetic drugs and insert the synthetic drugs into an e-cigarette. • A new trend made possible by liquid forms of the drug is the mixing of different drugs to achieve a unique high; for example, boosting hash oil with a dose of liquid synthetic pot and/or a psychedelic such as 2C-P.

Emerging Trends in Packaging Liquid Packaging

Emerging Trends in Packaging Loose Cigarettes or “Loosies”

Packaging: What to look out for…

3 0

What to look out for…

Common Phrases • Not for human consumption • Herbal incense • Plant food • Does not contain well known brands of synthetic cannabinoids • Does not contain illegal substances • Potpourri • 100% legal blend. • Damiana

Penalties for Selling

Penalties for Selling Synthetic Drugs

Penalties for Selling – Case Study 1 In June 2014, the DC Metropolitan Police Department (“MPD”) arrested William Early, the owner of Aida’s Electronics, for selling synthetic cannabinoids. Later in August 2014, MPD arrested Mr. Early a second time after he continued to sell the illegal products. In addition to the criminal cases against Mr. Early, the D.C. Office of Attorney General filed a civil suit against the owner. As a result of the civil suit, all of the store’s business licenses and occupancy permits were revoked. The store cannot reopen for any purpose for at least one year and the owner cannot apply for any new licenses. The owner was also fined $1,200.

Penalties for Selling – Case Study 2 The Mobil gas station and convenience store was the site of a undercover purchase by DC MPD. The Department of Consumer and Regulatory Affairs (DCRA) filed an administrative action against the lessee of the Mobil convenience store and the petroleum distributor, Shirlington Petroleum, to revoke the business licenses for both the convenience store operator and the petroleum distributor. The administrative court eventually dismissed Shirlington Petroleum, but revoked the convenience store’s business license for two years. After the suit, Shirlington Petroleum agreed to cease working with the convenience store operator.

Penalties for Selling – Case Study 3

Sang Leaming, the owner of Tobacco King in Colorado was sued by the Colorado Attorney General for selling synthetic cannabinoids and cathinones. Leaming was ultimately fined $100,000, the largest civil fine ever imposed for selling synthetic drugs. The investigation into his store started because of a complaint from a concerned mother whose son purchased drugs from Tobacco King. He was later criminally prosecuted for two counts of distributing synthetic drugs and sentenced to two years of probation.

Penalties for Selling – Case Study 4

Peter Smith, the owner of the properties, is cooperating with law enforcement to take steps to evict the tenant from his properties. Meanwhile, the tenant operator is facing civil and criminal charges for selling synthetic drugs. DC regulators shut down the operator’s business for 96 hours.

Penalties for Selling – Case Study 5

The defendants involved in this operation pleaded guilty to a variety of charges, including introducing mislabeled drugs into interstate commerce and withholding information. Punishments ranged from three years on probation to 11 years in prison. Among those to receive probation was a cashier who quit after working for one of the stores for less than a month and realizing what he was selling was illegal.

Penalties for Selling – Case Study 6 In April 2015, three of the five operators involved with the smoke shops pleaded guilty to selling packets of synthetic cannabinoids to an undercover officer. Under the terms of their plea agreements, one individual was to receive a prison term in the range of 48 to 60 months, another was to face a statutory maximum penalty of 20 years in federal prison followed by a minimum of three years supervised release and the other individual was to be sentenced to zero to six months in federal prison followed by a term of supervised release to be determine by the court.

What are the legal consequences for retailers?

Criminal, Civil & Administrative Penalties • People convicted of selling synthetic drugs have faced sentences of up to 20 years in prison • People have been civilly fined for selling synthetic drugs as well as had their stores shut down • Some administrative penalties have involved store owners getting their business licenses revoked for continuing to sell synthetic drugs • Check your local jurisdictions – Different states have different penalties

Laws and Regulations Federal Law

•

•

Many types of synthetic cannabinoids and synthetic cathinones have been criminalized by the federal government via the Drug Enforcement Administration (DEA). The Chinese government criminalized over 100 synthetic compounds in October 2015.

Tips for Store Owners & Operators • If a person approaches your business about selling synthetic drugs, please contact local law enforcement immediately. • Do NOT attempt to distinguish between “legal” and “illegal” synthetic drugs. It is safe to assume that ALL brands and types of synthetic drugs are illegal to sell. • Even owners of properties must comply with synthetic drug laws and have an obligation to know how their tenants are operating businesses on their properties. The owners should endeavor to cooperate with law enforcement investigations to ensure that their tenants are complying with laws.

Who to Contact for More Information •

If you suspect a person has ingested a synthetic drug call 9-11.

•

You can also call the American Association of Poison Control Centers at (800) 222-1222.

•

Contact the DEA at (202) 305-8426

•

Contact the DC Office of Attorney General’s Emerging Drug Trends Task Force at (202) 727-3500

•

Contact Jon Taets, Director, Government Relations, at NACS at (703) 518-4224 or [email protected]

OAG Emerging Drug Trends Task Force

Q&A