Prosecutors Allege Ukrainian Mob Runs Four Bay Area MMJ Clinics

Prosecutors Allege Mob Running Four Bay Area MMJ Clinics

Prosecutors say that four Bay Area medical marijuana clinics are actually working as an illegal prescription mill generating millions of dollars for the Ukrainian mob.

According to CBS, alleged ringleader Michael Malenkov is believed to be operating four clinics illegally, with offices under the name 420 MD located in Oakland, Berkeley, San Jose, and Sacramento.

The clinics are supposedly ran by a Dr. Bennie Brown, although prosecutors have documents they say show Malenkov pays the lease and salaries of employees, including Dr. Brown.

Under California law, clinics must be owned and operated by a doctor, where any evidence of “non-doctors” running it instead is considered a felony.

Evidence also suggests that Dr. Brown was found on Craigslist, and paid handsomely for providing his certifications.

“It was about $22,000 a month and it was all cash,” said Medical Board investigator Ralph Hughes, in an interview with CBS KPIX 5.

Investigators say that each clinic could generate up to $4 million annually. Since the clinics accept cash only, substantial amounts of money are likely being laundered overseas.

“There’s an awful lot of money that we think has moved out of the country,” said Hughes. “When we did the search warrant for Malenkov we found stacks of shipping receipts, where packages were being sent back to the Ukraine. I am certain there are others above Malenkov who are Eastern Bloc who are controlling the money.”

Story by Oscar Pascual at Smell The Truth. Be sure to check out Smell The Truth for all the latest and greatest cannabis news.