Monday, March 5, 2018

After Jury Trial, Former Congressional Staffer Found Guilty on Federal Bribery and Extortion Charges for Taking $5,000 from Compton Marijuana Dispensary

Small businesses need to watch out for people who ask for donations or funds to make their compliance issues go away. A recent case ended up in criminal charges and a three-day trial that ended last week in a conviction.

On March 2, 2018, Michael Kimbrew, a former staffer for Janice Hahn, a Member of the United States Congress, was found guilty by a jury of bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a now-defunct marijuana dispensary (Green Legends) on Long Beach Boulevard in the City of Compton in March through May 2015.

During the trial in United States District Court, the government prosecutors contended that Mr. Kimbrew attempted to extort a marijuana dispensary in Compton, threatening to shut down the shop if the owners did not pay him a $5,000 bribe. In exchange for the funds or "donation," Kimbrew allegedly also promised to help the shop obtain a lucrative permit to continue operating.

A former Green Legends employee testified at trial that Mr. Kimbrew came to the shop to discuss a “compliance issue,” asking to see permits showing the store — which was operating illegally in Compton — was in accordance with city rules. The employee told the jury that during two visits a few weeks apart, Mr. Kimbrew indicated he was looking for some kind of “arrangement” with the owners or “he was going to have the business shut down” by the end of the week. 

This appears to be about the time that an undercover FBI agent was brought in and recorded some of the interactions.  According to the undercover FBI agent recorded meetings, Mr. Kimbrew stated that he was going to shut down the shop unless he received the money. He allegedly claimed that, by virtue of his federal employment for the Congress member, he had “authority” and “jurisdiction” over what Compton public officials and departments did. In exchange for the $5,000, he promised to exercise that authority and jurisdiction to keep the shop in business.


Ultimately, during a lunch meeting in Compton, Mr. Kimbrew accepted $5,000 in cash hidden inside of a restaurant menu from the undercover agent. When he pocketed the cash, Mr. Kimbrew pledged his “undying support” to protect the shop. It appeared the dispensary was not in legal compliance and it was shut down by the city of Compton several months after the events described.

According to the press, the defense attorney alleged that Mr. Kimbrew falsely claimed to work for the city of Compton but actually had no authority over marijuana dispensaries, which were illegal in the city at the time. The defense told the jury that Mr. Kimbrew was not performing an “official act” when he met with Green Legend owners, and only took the cash when the undercover agent insisted the money was in exchange for introductions to other dispensary owners and to ensure a “good relationship” — which was unethical but not illegal, the attorney maintained. “Mr. Kimbrew was acting shady, yes, he was,” the defense attorney stated in her closing argument. “But that’s not a federal crime.” The defense attorney argued to the jury that Mr. Kimbrew cannot be convicted since the undercover agent “could not reasonably have believed” Mr. Kimbrew’s claim that he had the authority to keep the shop open. 

Mr. Kimbrew did not testify which is his constitutional right. The government alleges that Kimbrew abused his position as a public employee by threatening to shake down the owners of Green Legend. That was one of the factual and legal issues - was he using his official position?

After approximately four hours of deliberation, the jury convicted Mr. Kimbrew of bribery and attempted extortion. United States District Judge R. Gary Klausner is scheduled to sentence Kimbrew on June 4, 2018. The statutory maximum penalty of 18 years in federal prison but federal sentencing is a complex process that considers lack of criminal history and Judge Klausner will have discretion depending on many factors.

Posted by Tracy Green, Esq.
Green and Associates, Attorneys at Law

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