On Tuesday, August 27th, Allen Police raided nine hemp shops, accusing them of selling illegal
products containing higher-than-allowed levels of THC. Texas Hemp lawyer David Sergi, who
represents eight of the nine store owners, stated that his clients were operating legally under
both Texas and Federal law.
San Marcos-based attorney Sergi emphasized that his clients are being accused of
manufacturing and distributing illegal tetrahydrocannabinol (THC) products, but under current
state and federal guidelines, the products they sell are legally permissible.
Who is at Fault?
While many argue that the Allen Police Department overstepped by executing search and
seizure warrants, there is a broader context. The DEA had been conducting a joint task force
investigation, targeting similar shops less than a month prior. Subpoenas were issued to several
of these same store owners earlier in the summer, with the DEA seeking access to financial
documents, customer transactions, and supplier lists—requests that Sergi claims violate the
Fourth and Fifth Amendments to the U.S. Constitution.
Sergi, who previously helped overturn a statewide ban on consumable hemp products,
successfully defended his clients against these subpoenas. In that case, a federal judge ruled
that the DEA could not obtain the requested information, marking a significant victory for the
businesses involved.
“This is straight out of a Russian KGB novel or a mafia gangster film,” Sergi remarked,
comparing the heavy-handed tactics to fiction.
The stores recently raided, including Lit Smoke & Vape, Chasing Vapes, and Hazel Sky, are some
of the same businesses Sergi represents in ongoing legal battles with the Allen Hemp Coalition.
Fighting Back
AJ Velador, founder of Hemp Industry Leaders of Texas (HILT), is organizing a GoFundMe page
to assist with bond and legal expenses for those affected by the raids. Velador and his
organization aim to put an end to what they see as unlawful and disruptive actions against legal
hemp operators and retailers in Texas.
Sergi echoed Velador’s concerns, describing the raids as poorly conceived and
counterproductive. The coalition, comprised of small, family-owned businesses, provides
employment to many in the Allen area and serves customers in need of legal cannabinoids,
such as veterans and individuals suffering from pain and PTSD, as alternatives to opioids.
Sergi further warned that the city’s actions could inadvertently open the door for cartels to step
in with unregulated and dangerous products. Industry professionals, he said, strive to work with
law enforcement to ensure that compliant products are sold to adult consumers.
The Bigger Picture for Hemp Operators
The ongoing raids have raised several critical questions for hemp business operators. How is
law enforcement testing these products? Are they using the same standards that certified labs
use to issue Certificates of Analysis (COAs)?
These concerns are especially pressing as the hemp industry faces a new legislative session,
during which lawmakers are expected to address product labeling, packaging, and age
restrictions. The May 2024 hearing of the State Affairs Committee highlighted these issues.
Sergi & Associates Response
David Sergi argues that the actions of the Allen Police Department and the DEA represent a
clear escalation of tactics used across the state to intimidate businesses selling legal hemp-
based products. According to Sergi, the raids resulted in the destruction of products, the seizure
of point-of-sale systems, and the confiscation of personal computers belonging to
employees—all actions that he contends were unlawful.
“These businesses are operating legally under Texas law,” Sergi said. “There is a right way and a
wrong way to address compliance concerns, and they have chosen the wrong way. They will be
held accountable.”
Sergi is no stranger to cases like this. He also defended Sky & Hobbs after their indoor growing facility was raided by Navarro County sheriffs in 2021.
The Allen Hemp Coalition, representing many of the affected businesses, is currently fighting in
court to uphold their legal rights to operate. Sergi and his team have already successfully stayed
a DEA subpoena they deemed a blatant “fishing expedition.”
Join us on September 6th
6:00-6:30 PM: Drink, Appetizers & Meet and Greet
6:30-7:00 PM: Introduction
7:00-8:00 PM: Guest Speakers & Open Mic for attendees.
Questions, Comments, or Suggestions are welcomed
Guest Speakers:
Top TX Hemp Attorneys
Fellow Hemp Business Owners
Hemp Advocates
Location
Fogo de Chão Brazilian Steakhouse
200 Congress Ave., Austin, TX 78701
Date & Time
September 6, 2024, 6:00 PM – 9:00 PM
Objective:
We intend to establish HILT Chapters throughout Texas to organize and utilize our combined networks to promote legislation that benefits the hemp industry. We plan to recruit fellow business owners to participate in vital organizational roles that will encompass promoting Delta 8 legislation and defense against the imminent threat to ban intoxicating hemp in Jan 2025, Win the hearts and minds of Texans through positive marketing of our Industry, as well as charitable contributions such as feeding homeless and community service initiatives all while collaborating with leading advocacy groups in Texas. By working together, we’ll be empowered to demonstrate our strength to Texas legislators in terms of Tax dollars and registered voters, which will be our biggest weapon in the long term.
It’s time to prepare for the imminent threat to ban Delta 8 and THCa in January 2025.
We’re NOT asking for money, only your support! It’s time for Dallas & North Texas to help at the state and federal level.
My company will donate 250k to lobby a bill
to save your business. Please read up and send it to your friends.
AJ Velador here, I’m pretty sure you all know me by now and the ones who don’t please
ask around because I’ve been in trenches with all of you during the inception of Hemp in
Texas. Just like all of you, I have retail locations, wholesale operations, and farms all at risk
if they ban legal THC.
My partners and I are prepared to donate $250,000 in an effort to lobby a bill that will
regulate our industry to save it for all of us. Our days are numbered, we have one year or
less before a ban on Delta 8 & THCA is coming.
We are NOT asking for donations but rather your support in the coming months.
We will be forming a committee of entrepreneurs and activists who want to participate in
our endeavor to keep Hemp THC legal in Texas. Again, we do not require any financial
obligations other than your time and support.
“Help us help you!”
My partners and I will fund the cost of our lobbying efforts and we’ll commission a
committee of Industry Leaders that can contribute their time and expertise towards
passing a bill that would prevent any future bans on Delta 8, or other Federally legal THC.
We will be hosting three events in the following cities.
Dallas – Target Date Friday, July 12th 2024 Houston – Target Date Friday, AUG 26th 2024 Austin – TBD
The purpose of our committee and its members will be to delegate responsibility to
achieve our independent goals that the committee will approve and execute. We have a
plan that we need help on all sides to accomplish. The different agendas will encompass;
drafting bill regulations, community service initiatives, and petition of registered voters to
demonstrate our strength which may involve a call to action outside the Court House that
we plan to make headline news, more to follow on this.
Proposed Plan
#1 Draft Bill
(Proposed Hemp Regulation)
We are searching for committee members who are passionate about assisting in the
development of guidelines and work closely with our attorneys to draft a bill we can lobby
into effect. This should be an easy task as we can adopt regulations from other Cannabis
states such as state-approved vendors, state-approved products, state-approved retailers,
age restrictions, packaging requirements, etc., as long as we can avoid any metrics
tracking we should be able to continue to thrive.
#2 Media Campaigns
There will be numerous media campaigns that have specific agendas such as:
Win Heart and Mind of Texans – shining a positive light on our industry through
charitable food drives, clean-up projects, etc. I will personally commission any initiative
that helps our communities.
Education – Lots of opposition are mothers complaining about their kids access to THC.
These mothers want to ban Delta 8 entirely. I want to reach these mothers through the
media and remind them of two things. First, if they outlaw D8 entirely, it will open up the
black market and invite fentanyl-laced drugs, cartels, and drug dealers back to our
schools and communities. Second, educate them that there will be a loss of 1 billion
dollars of tax revenue that actually makes their communities safer.
#3 Call to Action
(Petition Voters and Show our Strength)
30 million population in Texas, and a poll found that 82% of Texans support the legislature
passing a bill that would allow people to use cannabis. We will build the largest coalition
of retailers, wholesalers, and farmers that will use our customer base for a few different
agendas, such as:
Phone, e-mail, and social media blitz campaigns to their state representatives asking
them to support our bill for various reasons.
Host huge rallies with our supporters in each of our major cities, basically Cannabis
Festivals/Rallies throughout the year, with our main objective to gain support to raise
100k voters outside the Court House during the session in early 2025 while using the
relationships of our media outlets that we befriended earlier to make our gathering a
global phenomenon. We will have our designated spokespersons ready to deploy on
camera to promote our message and show strength to our politicians that we mean
business. Considering by this time, all House and Senate Representatives have been
receiving an abundance of calls and correspondence that will weaken any opposition’s
support that is already on the fence or neutral. Meanwhile, we will have our committee
leaders, including myself, lobbying with politicians to include LT Governor, Sen. Perry, and
other opposition to negotiate our terms to enhance our outcome. Ultimately, we just
need to get a majority vote to pass our bill.
I’ve already reached out to advocate leaders such as Hometown Hero and others to find a
way we can all collaborate our efforts for maximum participation and exposure.
Again, WE ARE WILLING TO PAY THE BILL ON ALL OF THIS, FREE FOR YOU TO HELP US SAVE THE INDUSTRY, but without your assistance, we will surely fail, so what do you
say? If I pay for us to stay legal can I count on you to help us accomplish our goals? I have
experience in this field and my connections are strong so I’m down to put my money
where my mouth is!
Thank you guys and gals, and I look forward to meeting all of you.
