United States v. Schafer

625 F.3d 629, 2010 U.S. App. LEXIS 23131, 2010 WL 4400052
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 8, 2010
Docket08-10167, 08-10169
StatusPublished
Cited by39 cases

This text of 625 F.3d 629 (United States v. Schafer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Schafer, 625 F.3d 629, 2010 U.S. App. LEXIS 23131, 2010 WL 4400052 (9th Cir. 2010).

Opinion

OPINION

TALLMAN, Circuit Judge:

Defendants-Appellants Dale Schafer and Marion Fry challenge federal convictions that arise from their operation of a medical marijuana growing operation and dispensary in the Sierra Nevada community of Cool, California. A jury found Appellants guilty of conspiring to manufac *633 ture and distribute at least 100 marijuana plants. The jury specifically convicted Schafer of manufacturing at least 100 marijuana plants and found Fry guilty of manufacturing fewer than 100 marijuana plants. Appellants raise three claims on appeal: (1) the district court improperly denied their motion to dismiss the indictment on a theory of entrapment by estoppel without conducting an evidentiary hearing; (2) the district court erred when it precluded Appellants from presenting an entrapment by estoppel defense and a medical necessity defense at trial; and (3) the district court should have reduced their sentences on a theory of sentencing entrapment. We have jurisdiction over their appeal under 28 U.S.C. § 1291, and we affirm.

I

Fry, a medical doctor, was diagnosed with breast cancer in December 1997. She received a recommendation to use marijuana in early 1998 to help alleviate the side effects of the chemotherapy treatments she was undergoing. Consequently, Schafer, her husband and a practicing attorney, began cultivating marijuana plants for Fry’s use. In July 1999, Fry contacted Detective Robert Ashworth, an officer with the El Dorado County Sheriffs Office, to inform deputies of the marijuana grow operation. 1 Detective Ashworth and Sergeant Timothy McNulty visited Appellants’ residence and inspected their marijuana plants.

In late 1999, Schafer’s cultivation of marijuana for his wife developed into a much larger marijuana recommendation and sales business, extending well beyond personal use amounts of marijuana. During the time that Schafer and Fry were operating their marijuana business, Ash-worth and McNulty repeatedly visited their residence and office. On one particular occasion, Ashworth and McNulty visited Appellants to discuss the unrelated investigation and arrest of two of their former employees. The employees had been involved in a major marijuana growing operation on a rural ranch elsewhere in El Dorado County that was not affiliated with Appellants’ business. That separate police raid and investigation involved law enforcement personnel from both local and federal narcotics units who cooperated with one another in a joint interagency task force.

Federal authorities with the Drug Enforcement Administration (“DEA”) separately began investigating Appellants in late 2000 after a shipping company reported intercepting several packages containing marijuana sent from “Dale.” This investigation included receiving reports from numerous undercover visits by local law enforcement operatives to Appellants’ place of business for the purpose of obtaining marijuana recommendations. The information gathered through these undercover investigations was then given to federal agents. Local and federal agents ultimately executed a federal search warrant at Appellants’ business and home on September 28, 2001.

A federal grand jury returned an indictment against Appellants on June 15, 2005, charging them with one count of conspiring to manufacture and distribute marijuana plants, and one count of manufacturing at least 100 plants. Appellants filed a motion to dismiss the indictment, arguing that the United States could not prosecute them because of their defense of entrap *634 ment by estoppel. In support of their motion to dismiss, they filed a memorandum from the Office of National Drug Control Policy and a letter from the Attorneys General of Arizona and California. The attachments emphasized that local law enforcement officers would support federal attempts to enforce the federal laws criminalizing marijuana. In their motion to dismiss, Appellants alleged that both McNulty and Ashworth admitted that they wefe working on behalf of the federal government and further claimed that Officer McNulty had said Appellants’ conduct was legal.

The United States opposed the motion, arguing that Appellants were not entitled to invoke an entrapment by estoppel defense because they had not relied on the representations of a federal official or an authorized agent of the federal government. The opposition included a declaration from McNulty denying that he ever represented himself as a federal official or that he encouraged Appellants to continue growing marijuana. Alternatively, the government contended that Appellants had not reasonably relied on any of the alleged misrepresentations. To prove lack of reliance, the government submitted copies of written recommendations distributed to “patients” by Appellants’ business. These recommendations included a disclaimer that unequivocally stated that marijuana remained illegal under federal law.

At a hearing conducted to address the motion to dismiss, Appellants requested an evidentiary hearing for the purpose of resolving the conflict between the factual allegations in their pleadings and those in McNulty’s sworn declaration. The district court denied Appellants’ request and assumed for purposes of deciding the legal issue that McNulty was a federal official. Notwithstanding that assumption, the district court refused to dismiss the case because Appellants had not adequately shown that they relied on any alleged misinformation.

Before trial, the government filed a motion in limine seeking to prevent Appellants from asserting either a medical necessity defense or an entrapment by estoppel defense. The government argued that the Supreme Court’s decision in United States v. Oakland Cannabis Buyers’ Cooperative, 532 U.S. 483, 121 S.Ct. 1711, 149 L.Ed.2d 722 (2001) [hereinafter OCBC II], precluded any entitlement by a defendant to rely on the claimed medicinal value of marijuana and prohibited Appellants from asserting a cognizable medical necessity defense. The government also sought exclusion of an entrapment by estoppel defense for the reasons stated in their opposition to Appellants’ motion to dismiss — that McNulty and Ashworth were not federal officials or authorized agents of the federal government and Appellants did not reasonably rely on any of their alleged misrepresentations.

Appellants contested the applicability of OCBC II and argued that a retroactive application of the Supreme Court’s decision would be a violation of the ex post facto clause. Although the district court had previously rejected Appellants’ entrapment by estoppel defense, they asked that the district court “keep an open mind as to the characterization of the evidence.” To further support their argument that McNulty and Ashworth were federal officials, Appellants submitted an affidavit from their attorney attesting to the fact that an agent with the DEA directed the investigations conducted by local law enforcement officers. Appellants incorporated excerpts of the police reports chronicling the investigation of Appellants’ business. These reports established that officers from local

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Cite This Page — Counsel Stack

Bluebook (online)
625 F.3d 629, 2010 U.S. App. LEXIS 23131, 2010 WL 4400052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-schafer-ca9-2010.