United States v. McCarthy

Court of Appeals for the Tenth Circuit·Decided May 6, 2026·No. 25-5026·Published

Opinion

FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS May 6, 2026

Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

UNITED STATES OF AMERICA, Plaintiff - Appellant, v. No. 25-5026

BRANDON DAVID MCCARTHY; RACHEL CHRISTINE MCCARTHY,

Defendants - Appellees.

Appeal from the United States District Court for the Northern District of Oklahoma (D.C. No. 4:23-CR-00359-SEH)

Thomas E. Duncombe, Assistant United States Attorney (Clinton J. Johnson, United States Attorney, with him on the briefs), Tulsa, Oklahoma, for Plaintiff-Appellant.

Leah D. Yaffe, Assistant Federal Public Defender, Denver, Colorado (Alan S. Mouritsen of Parsons Behle & Latimer, Salt Lake City, Utah; Virginia L. Grady, Federal Public Defender, Denver, Colorado, with her on the brief), for Defendants-Appellees.

Before HARTZ, TYMKOVICH, and EID, Circuit Judges.

HARTZ, Circuit Judge.

The government appeals the dismissal of several charges in an indictment against Defendants Brandon and Rachel McCarthy. The issue before us is whether Defendants can be prosecuted for selling unprocessed poppy seeds, even if they are

not controlled substances, if Defendants knew that the poppy seeds would be used as a precursor to manufacture a controlled substance—namely, poppy-seed tea, which contains opioids. Exercising jurisdiction under 18 U.S.C. § 3731, we reverse the dismissal of the disputed charges.

I. BACKGROUND 1 Under the Controlled Substances Act (the CSA or the Act), 21 U.S.C. § 801 et seq., poppy seeds are explicitly excluded from the definitions of two substances listed as Schedule II controlled substances: opium poppy and poppy straw. See 21 U.S.C. §802(19)–(20) (definitions); 21 C.F.R. §1308.12 (Schedule II). The inside of an opium poppy pod, however, is coated with opium latex, a milky, sap-like substance, which contains opiate alkaloids, including morphine, codeine, and thebaine, which are controlled substances. After harvesting, unprocessed poppy seeds—typically marketed as “unwashed,” “organic,” or “natural”—have some opium latex coating. Aplt. App. 139. The industry standard requires that for poppy seeds to be food-grade, they must be processed to remove the coating.

Defendants Brandon and Rachel McCarthy operated Lone Goose Bakery as an online store primarily selling unprocessed poppy seeds coated in opium latex. Defendants would buy the seeds in bulk and repackage them in smaller bags for their

1 On review of the dismissal of an indictment, we assume the allegations in the indictment to be true. See United States v. Todd, 446 F.3d 1062, 1067 (10th Cir. 2006).

customers. Most customers were individuals who purchased the seeds for personal consumption, not bakeries or retail businesses.

Defendants published eBooks and videos about poppy-seed tea. Poppy-seed tea is brewed by steeping large quantities of unprocessed poppy seeds in water to separate out the opium latex. Consuming poppy-seed tea causes effects similar to consuming pharmaceutical opiates and can lead to addiction, unconsciousness, overdose, and death. Defendants’ books and videos, which discussed unprocessed poppy seeds sold by Lone Goose Bakery, provided guidance and recipes for making poppy-seed tea. One serving of Defendants’ recipes for poppy-seed tea could expose consumers to about one gram of morphine.

Defendants’ publications acknowledged that consuming tea from its poppy seeds could cause an opiate overdose. And that happened at least once. In December 2018 a customer purchased two five-pound shipments of unprocessed poppy seeds from Defendants, drank poppy-seed tea, and died from an overdose.

In January 2025 a grand jury of the United States District Court for the Northern District of Oklahoma returned a 41-count superseding indictment against Defendants. All the counts arose out of Defendants’ poppy-seed business. Some relied on the contention that the poppy seeds were controlled substances; others relied on the contention that the seeds were precursors for controlled substances. Defendants moved to dismiss all charges on the grounds (1) that the CSA excludes prosecution of the sale and possession of poppy seeds, (2) that if the Act is ambiguous in that regard, the rule of lenity requires dismissal, and (3) the Act is

unconstitutionally vague if it is construed to prohibit Defendants’ sale and possession of poppy seeds. The district court granted the motion. 2 The government appeals. It does not challenge the dismissal of “charges predicated upon allegations that [Defendants] distributed and possessed with intent to distribute controlled substances morphine, codeine, and thebaine”; it challenges only “the dismissal of charges predicated upon allegations that [Defendants] distributed and possessed drug precursors.” Aplt. Br. at 14. We agree with the government and reverse the dismissal of the challenged counts.

II. DISCUSSION A. Statutory Interpretation The CSA “mak[es] it unlawful to manufacture, distribute, dispense, or possess any controlled substance except in a manner authorized by the CSA.” Gonzales v. Raich, 545 U.S. 1, 13 (2005) (citing 21 U.S.C. §§ 841(a)(1), 844(a)). To further this mission, the CSA also forbids the possession or distribution of things that are to be used to manufacture controlled substances. See 21 U.S.C. § 843(a)(6) and (7). Counts 11 through 17 of the indictment against Defendants charged that they “knowingly and intentionally distributed unprocessed poppy seeds coated in opium

2 Defendants also moved to dismiss on the grounds that poppy-seed regulation was delegated exclusively to the Food and Drug Administration and that they relied on the government’s approval of their business since they obtained the poppy seeds in compliance with the Foreign Supplier Verification Program and received a trademark for Lone Goose Bakery. The district court rejected those grounds. Because Defendants do not raise those issues on appeal, we do not consider them.

latex, a material used to manufacture a controlled substance, knowing, intending, and having reasonable cause to believe that material would be used to manufacture a controlled substance,” in violation of § 843(a)(7); and Count 18 charged that they “knowingly and intentionally possessed unprocessed poppy seeds coated in opium latex, a material used to manufacture a controlled substance, knowing, intending, and having reasonable cause to believe that material would be used to manufacture a controlled substance,” in violation of § 843(a)(6). 3 Aplt. App. at 153–54 (emphasis added). 4

3 Under § 843(a)(6) and (7) it is “unlawful for any person knowingly or intentionally”:

(6) to possess any three-neck round-bottom flask, tableting machine, encapsulating machine, or gelatin capsule, or any equipment, chemical, product, or material which may be used to manufacture a controlled substance or listed chemical, knowing, intending, or having reasonable cause to believe, that it will be used to manufacture a controlled substance or listed chemical in violation of this subchapter or subchapter II; [or]

(7) to manufacture, distribute, export, or import any three-neck round-

bottom flask, tableting machine, encapsulating machine, or gelatin capsule, or any equipment, chemical, product, or material which may be used to manufacture a controlled substance or listed chemical, knowing, intending, or having reasonable cause to believe, that it will be used to manufacture a controlled substance or listed chemical in violation of this subchapter or subchapter II or, in the case of an exportation, in violation of this subchapter or subchapter II or of the laws of the country to which it is exported[.]

21 U.S.C. § 843(a) (emphasis added).

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