Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 1 of 18 PageID 24 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA AT HUNTINGTON UNITED STATES OF AMERICA, Plaintiff, vs. Civil Action No. 3:18-cv-01289 MATTHEW MALLORY, CAMO HEMP WV LLC, GARY KALE, GRASSY RUN FARMS, LLC, their agents, servants, assigns, attorneys, and all others acting in concert with the named defendants, Defendants. VERIFIED COMPLAINT FOR DECLARATORY TEMPORARY, PRELIMINARY, AND PERMANENT INJUNCTIVE ASSET AND CIVIL PENALTIES I. INTRODUCTION 1. The United States of America (hereinafter ?United States?), by its undersigned attorneys, brings this action under the Controlled Substances Act (hereinafter ?the 21 U.S.C. 801, et seq, and other related federal statutes and federal law, for declaratory relief, a temporary restraining order, preliminary and permanent injunctive relief, asset forfeiture, and civil penalties and damages arising out of defendants Matthew Mallory, CAMO HEMP WV LLC, Gary Kale, Grassy Run Farms, LLC, and all those acting in concert with those named defendants in the ongoing manufacture, possession, and distribution of marijuana, a Schedule I controlled substance, and possession of marijuana with the intent to manufacture and distribute the substance in violation of 21 U.S.C. 841(a)(1); and defendants Matthew Mallory, CAMO HEMP WV LLC, Gary Kale, Grassy Run Farms, LLC, and all those acting in concert with those Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 2 of 18 PageID 25 named defendants acting in an ongoing conspiracy to violate the Act, in violation of 21 U.S.C. 846. 2. The United States also seeks temporary, preliminary, and permanent injunctive reliefpursuant to Fed.R.Civ.P. 65 and 21 U.S.C. 843(f), 856(e), 882(a). 3. The United States also seeks remedies and damages relating to civil and other types of forfeiture pursuant to 18 U.S.C. 981, et seq, and 21 U.S.C. 881. 4. The United States. also seeks civil penalties and damages pursuant to 21 U.S.C. 856(d). II. JURISDICTION AND VENUE 5. This action arises out of violations of21 U.S.C. 801, et seq; 21 U.S.C. 843(f), 856(e), 882(a) which authorize temporary, preliminary, and permanent injunctive relief; 28 U.S.C. 2201 and 2202 which authorizes declaratory relief; 18 U.S.C. 981, et seq, and 21 U.S.C. 881 which authorize civil forfeiture; and 21 U.S.C. 856(d) which authorizes civil penalties and damages for the violations of the Act alleged herein. 6. This court hasjurisdiction pursuant to 18 U.S.C. 981, 985; 21 U.S.C. 881, 882(a); and 28 U.S.C. 1331, 1345, and 1355. 7. Venue is proper pursuant to 28 U.S.C. 1391(b). PARTIES 8. The plaintiff is the United States of America (hereinafter ?United States?). 9. Matthew Mallory (hereinafter ?Mallory?) is the proprietor of a business named CAMO HEMP WV LLC (hereinafter an alleged business entity of unknown origin, and not registered with the Of?ce of the Secretary of State of West Virginia. Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 3 of 18 PageID 26 10. Gary Kale (?Kale?) is an employee and/or agent for Grassy Run Farms, LLC (?Grassy Run?), and the Schedule I controlled substance which is the subject of this action has been grown, manufactured, and produced on property owned and/or controlled by Grassy Run Farms, LLC. IV. LEGAL CONTROLLED SUBSTANCES ACT 11. The Controlled Substances Act 21 U.S.C. 801, et seq, establishes a comprehensive federal scheme to regulate controlled substances. The CSA makes it unlaw?il to ?manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or diSpense? any controlled substance, ?[e]xcept as authorized by [21 U.S.C. 21 U.S.C. 841(a)(1). Under the CSA, ?manufactur[ing]? includes ?production,? 21 U.S.C. 802(15), which includes ?planting, cultivation, growing, or harvesting? a controlled substance, 21 U.S.C. 802(22). The CSA makes it a crime to possess any controlled substance except as authorized by the CSA. 12. The CSA establishes ?a ?closed? system of drug distribution for legitimate handlers? of controlled substances. No. 91?1444, at p. 6 (1970), as reprinted in 1970 U.S.C.C.A.N. 4566, 4571?72. To effectuate that closed system, the CSA ?authorizes transactions within ?the legitimate distribution chain? and makes all others illegal.? United States v. Moore, 423 US. 122, 141, 96 335, 46 L.Ed.2d 333 (1975) (quoting No. 91- 1444 (1970)). The restrictions the CSA places on the manufacture, distribution, and possession of a controlled substance depend upon the ?schedule? in which the drug has been placed. gee 21 U.S.C. 821?29. 13. The CSA establishes ?ve ?schedules? of controlled substances differentiated by the scheduled drug?s potential for abuse, its usefulness in medical treatment, and the potential Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 4 of 18 PageID 27 consequences if abused. 21 U.S.C. 812(b). A controlled substance is listed in Schedule I, the 3? 64 most restrictive schedule, if it has ?a high potential for abuse, no currently accepted medical use in treatment in the United States,? and ?a lack of accepted safety for use under medical supervision.? 21 U.S.C. 812(b)(1). Under the CSA, any person who seeks to manufacture, distribute, or possess a Schedule I controlled substance must apply for and obtain a certi?cate of registration from the Drug Enforcement Agency 21 U.S.C. 822?23. When evaluating an application to manufacture a Schedule I substance, the DEA is required to consider ,3 66 such factors as the applicant?s ?maintenance of effective controls against diversion, past experience in the manufacture of controlled substances,? and criminal history. 21 U.S.C. 823(a). 14. Since Congress enacted the CSA in 1970, ?marijuana? (or ??marihuana?) and tetrahydrocannabinols (THC) have been classi?ed as Schedule I controlled substances. Comprehensive Drug Abuse Prevention and Control Act of 1970, Pub.L. No. 91?513, 202, 84 Stat. 1249 (schedule 21 U.S.C. 812(c) (Schedule ?Marijuana? is de?ned under the CSA to include ?all parts of the plant Cannabis sativa except certain components of the plant such as mature stalks, ?ber produced from the stalks, sterilized seeds, and oil from the seeds. 21 U.S.C. 802(16). 15. The CSA contains congressional ?ndings regarding the effects of drug distribution and use on the public health and welfare, and the effects of drug activity on interstate commerce. Congress found that ?[t]he illegal importation, manufacture, distribution, and possession and improper use of controlled substances have a substantial and detrimental effect on the health and general welfare of the Ammican people.? 21 U.S.C. 801(2). Congress then found: Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 5 of 18 PageID 28 (3) A major portion of the traf?c in controlled substances ?ows through interstate and foreign commerce. Incidents of the traf?c which are not an integral part of the interstate or foreign ?ow, such as manufacture, local distribution, and possession, nonetheless have a substantial and direct effect upon interstate commerce because?- (A) after manufacture, many controlled substances are transported in interstate commerce, (B) controlled substances distributed locally usually have been transported in interstate commerce immediately before their distribution, and (C) controlled substances possessed commonly ?ow through interstate commerce immediately prior to such possession. 21 U.S.C. 801(3). 16. Congress further found that ?[l]ocal distribution and possession of controlled substances contribute to swelling the interstate traf?c in such substances.? 21 U.S.C. 801(4); that ?[c]ontrolled substances manufactured and distributed intrastate cannot be differentiated from controlled substances manufactured and distributed interstate? and ?[t]hus, it is not feasible to distinguish? between such substances ?in terms of controls,? 21 U.S.C. 801(5); and that ?[?ederal control of the intrastate incidents of the traf?c in controlled substances is essential to the effective control of the interstate incidents of such traf?c.? 21 U.S.C. 801(6). 17. Under the CSA, marijuana is designated as a Schedule 1 controlled substance. 21 U.S.C. 812 (Schedule The CSA de?nes ?marijuana? as follows: [A]ll parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks of such plant, ?ber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), ?ber, oil, or cake, or the sterilized seed of such plant which is incapable of germination. Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 6 of 18 PageID 29 21 U.S.C. 802(16). This de?nition of ?marijuana? unambiguously includes the Cannabis sativa L. plant and does not in any manner differentiate between Cannabis plants based on their THC concentrations. Although the de?nition does exclude certain components of the plant, it is clear that a growing Cannabis plant falls within the de?nition of ?marijuana.? 18. In addition, the CSA designates ?any material which contains any quantity of [t]etrahydrocannabinol[ as a Schedule I controlled substance. 21 U.S.C. 812 (Schedule 21 U.S.C. 881(g)(1) (?All species of plants from which controlled substances in schedules I and 11 may be derived which have been planted or cultivated in violation of this subchapter may be seized and summarily forfeited to the United States?). The CSA makes no distinction between cannabis grown for drug use and that grown for industrial use. 21 U.S.C. 802(16). also United States v. Sifuentes, 504 F.2d 845, 849 (4th Cir. 1974) (the CSA applies to all species of cannabis). 19. The CSA likewise makes no distinction between cannabis grown for drug use and that grown for industrial use. ?Industrial? or ?commercial? hemp is subject to regulation as a Schedule I controlled substance under the CSA because as a species of Cannabis sativa L., it falls squarely within the de?nition of marijuana set forth in the CSA. The language of the CSA unambiguously bans the growing of marijuana, regardless of its use. The legislative history of the CSA makes it clear that the CSA bans the growth of all varieties of the Cannabis sativa L. plant absent compliance with the registration requirements of the CSA. Monson v. Drug Enforcement Administration, 589 F.3d 952, 961-62 (8th Cir. 2009). V. LEGAL LIMITED EXCEPTION CREATED BY THE AGRICULTURE ACT OF 2014 20. In the Agricultural Act of 2014, Congress created a special exception to the CSA to allow states to enact laws to allow certain institutions of higher education and state Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 7 of 18 PageID 30 departments of agriculture to grow or cultivate ?industrial hemp? for research purposes or as part of an agricultural pilot program in which the ?industrial hemp? is grown for agricultural or academic research. This exception was codi?ed at 7 U.S.C. 5940: In general Notwithstanding the Controlled Substances Act (21 U.S.C. 801 et seq), chapter 81 of Title 41, or any other Federal law, an institution of higher education (as de?ned in section 1001 of Title 20) or a State department of agriculture may grow or cultivate industrial hemp if? (1) the industrial hemp is grown or cultivated for purposes of research conducted under an agricultural pilot program or other agricultural or academic research; and (2) the growing or cultivating of industrial hemp is allowed under the laws of the State in which such institution of higher education or State department of agriculture is located and such research occurs. De?nitions In this section: (1) Agricultural pilot program The term ?agricultural pilot program? means a pilot program to study the growth, cultivation, or marketing of industrial hemp-- (A) in States that permit the growth or cultivation of industrial hemp under the laws of the State; and (B) in a manner that?- ensures that only institutions of higher education and State departments of agriculture are used to grow or cultivate industrial hemp; (ii) requires that sites used for growing or cultivating industrial hemp in a State be certi?ed by, and registered with, the State department of agriculture; and authorizes State departments of agriculture to promulgate regulations to carry out the pilot program in the States in accordance with the purposes of this section. Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 8 of 18 PageID 31 (2) Industrial hemp The term ?industrial hemp? means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta?9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis. (3) State department of agriculture The term ?State department of agriculture? means the agency, commission, or department of a State government responsible for agriculture within the State. 21. Under this limited exception, the grower must be (1) an institution of higher education as de?ned by certain federal statutes; (2) state department of agriculture; or (3) a person or entity growing the industrial hemp under the auspices of a state department of agriculture pilot program. 81 ed.Reg. 53395-96 (Aug. 12, 2016) (a copy of which is attached as Exhibit A to this complaint). 22. Such a program has various constraints and limitations. For example, the growth and cultivation of industrial hemp can only take place in accordance with an agricultural pilot program to study the growth, cultivation, or marketing of industrial hemp as established by a state department of agriculture or a state agency where the production of industrial hemp is otherwise legal; hemp plants and seeds may not be transported across state lines; the person growing the hemp must be licensed, registered and authorized to conduct research under the agricultural pilot program; the plant and its derivatives must have a very limited THC level. Other constraints and limitations also exist. Despite the limited exception permitted under 7 U.S.C. 5490, any person or entity who fails to meet these licensing and registration quali?cations, the conditions and constraints imposed by the state programs, and the limitations Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 9 of 18 PageID 32 prohibiting transportation of hemp products and seeds across state lines are subject to the CSA. 81 Fed.Reg. 53395-96 (Aug. 12, 2016) (Exhibit A attached to this complaint). Exhibit attached to this complaint. 23. The limited exception to the CSA created by 7 U.S.C. 5940 does not alter the requirements of the CSA that apply to the manufacture, distribution, and dispensing of products containing controlled substances. Persons and entities who manufacture, distribute, or dispense products derived from cannabis plants are still subject to and must adhere to the legal duties and conditions imposed by the CSA. 81 Fed.Reg. 53395-96 (Aug. 12, 2016). VI. FACTUAL BACKGROUND 24. Mallory ?led an Application for Research and Marketing Cultivation of Industrial Hemp with the West Virginia Department of Agriculture on April 26, 2018. He listed the ?Business Name? as HEMP WV ?e Exhibit attached to this complaint. Mallory received a license to participate in the West Virginia industrial hemp pilot program. For unknown reasons, that license is dated as being issued prior to the ?ling of the Application for Research and Marketing Cultivation of Industrial Hemp with the West Virginia Department of Agriculture on April 26, 2018. Exhibit attached to this complaint. 25. The application indicated that certain security measures, including a fence, game cameras, a gate with a chained lock, and signage indicating to the public that the site had an industrial research crop containing no THC would be installed at the site. However, no such security devices and signage have been installed on the property on which the cannabis hemp seed has been planted and grown. 26. As part of that application, Mallory attached Attachment which included a ?Hemp Research Project Description.? In that project description, he stated that the Research Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 10 of 18 PagelD 33 Question was ?What are the rates of nutrient and water application for industrial hemp to achieve maximum growth potential?? Exhibit attached to this complaint. The project description included a list of objectives and a work plan. 27. In the timeline section of that plan, Mallory indicated that seeds for their project would be purchased through the West Virginia Department of Agriculture (hereinafter Exhibit attached to this Complaint. 28. Under the pilot program of the WVDA, growers are required to identify international sources for their cannabis seeds for industrial hemp and submit that information to WVDA for approval. They are not permitted to purchase cannabis seeds for industrial hemp from sellers in other states and have that seed transported across state lines. If the international source for the industrial hemp seed for the project is approved, then the WVDA arranges for an appropriate import permit through its DEA registration and arranges for the importation of the industrial hemp seed. After the DEA has approved the import permit, then the WVDA arranges for the industrial hemp seed to be shipped to its Guthrie Of?ce for eventual transport to the licensed applicant. An employee of the WVDA is present and transfers the imported industrial hemp seed to the licensed applicant at the delivery site. 52 Exhibit attached to this Complaint. 29. Mallory and CAMO failed to follow this requirement of the WVDA pilot program that is also against the CSA legal requirement that cannabis seeds and plants not be transported across state lines. Mallory and CAMO purchased cannabis hemp seed from Hickman Seed Grain Company located in Clinton, Kentucky, on April 24, 2018, two days prior to the Application for Research and Marketing Cultivation of Industrial Hemp. The cannabis hemp seed was shipped directly from Clinton, Kentucky to the property described in Mallory 10 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 11 of 18 PagelD 34 application by United Parcel Service. According to the shipping documents, approximately 5,000 pounds of cannabis hemp seed was picked up from Hickman Seed Grain Company in Clinton, Kentucky, on April 24, 2018, and delivered to Grassy Run Farms, in Mason County, West Virginia, on April 25, 2018. The delivery occurred one day prior to the date that Mallory signed the Application for Research and Marketing Cultivation of Industrial Hemp. See Exhibits and attached to this complaint. 30. The United States has also learned that Mallory and CAMO intend to harvest the hemp plants on the Mason County, West Virginia, property and ship the top portions of those plants, which include the seeds, to The shipment of any part of a cannabis plant, including the seeds of a cannabis plant, across state lines is a violation of the CSA. 31. The United States anticipates that Mallory and CAMO, in concert with Kale and Grassy Run Farms, will harvest this industrial hemp imminently. Originally, Mallory and CAMO anticipated harvesting the hemp plants on September 1, 2018. That harvest date has apparently been delayed, but based on information and belief, Mallory and CAMO, in concert with Kale and Grassy Run Farms, intend to start harvesting the hemp plants very soon. 32. Unless Mallory, CAMO, Kale, Grassy Run Farms, and others who may be working in concert with them or who may be employed by them are enjoined from harvesting the hemp plants from that property, then the seeds and portions of those hemp plants may be transported across state lines in violation of the CSA and other federal laws. Time is of the essence to prevent that action from occurring. 33. Under the CSA, 21 U.S.C. 841(a)(1) makes it unlawful, except as authorized by the CSA, for any person to knowingly or intentionally ?manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, a controlled substance. 11 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 12 of 18 PagelD 35 34. Under 21 U.S.C. 802(15), the CSA de?nes the term ?manufacture? as ?the production, preparation, propagation, compounding, or processing of a drug or other substance. . . The CSA further de?nes ?production? as ?the manufacturing, planting, cultivation, growing, or harvesting of a controlled substance.? 21 U.S.C. 802(22). 35. The CSA also makes it unlawful, except as authorized under the CSA, to ?knowingly open or maintain any place for the purpose of manufacturing, distributing, or using any controlled substance.? 21 U.S.C. 856(a)(1). 36. The CSA also makes it unlawful for any person to conspire to violate the CSA. 21 U.S.C. 846. 37. Since Mallory and CAMO have not complied with the conditions imposed upon them by the WVDA pilot program, they have purchased and transported cannabis seed across state lines in violation of the CSA to grow allegedly industrial hemp located on the property in Mason County, West Virginia, and, acting in concert with Kale and Grassy Run Farms, are attempting to harvest and transport parts of those cannabis plants across state lines (including cannabis seeds), that industrial hemp is no longer within the exemption permitted by 7 U.S.C. 5940, and Mallory, CAMO, Kale, and Grassy Run Farms are, therefore, in violation of the CSA, 21 U.S.C. 841(a)(1) prohibitions against the possession, manufacture, distribution, and possession with the intent to distribute marijuana, a Schedule I controlled substance. 38. The CSA provides that federal district courts have jurisdiction in civil actions brought by the United States to enjoin violations of the CSA. 21 U.S.C. 882(a). VII. CLAIMS ASSERTED BY THE UNITED STATES AGAINST THE DEFENDANTS 39. The defendants have engaged in the manufacturing, planting cultivation, and distribution of marijuana in violation of the CSA and other federal laws. 12 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 13 of 18 PagelD 36 40. The defendants, in concert with others, have engaged in the manufacture of marijuana in violation of the CSA and other federal laws. 41. The defendants, in concert with others, have been engaged in the manufacture of, distribution of, and possession with intent to distribute marijuana in violation of the CSA and other federal laws. 42. The defendants have maintained and utilized certain land in Mason, County, West Virginia, for the purpose of manufacturing, distributing, and possessing marijuana in violation of the CSA and other federal laws. 43. The defendants have conSpired, among themselves and with unknown individuals, to violate the CSA. COUNT I 44. The United States hereby incorporates by reference paragraphs 1-43 as though fully set forth herein. 45. The defendants have violated 21 U.S.C. 84l(a)(l) in concert with others by engaging in the possession, manufacturing, distribution, and possession with the intent to distribute marijuana, a Schedule I controlled substance. 46. Defendants? actions, in concert with others, to manufacture, distribute, and possess with the intent to distribute marijuana are ongoing and continuing, and, based on information and belief, are likely to continue unless enjoined by the court. COUNT II 47. The United States hereby incorporates by reference paragraphs 1-46 as though fully set forth herein. 13 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 14 of 18 PagelD 37 48. Under 21 U.S.C. 856 it is unlawful to (1) knowingly open, lease, rent, use, or maintain any place, whether permanently or temporarily, for the purpose of manufacturing, distributing, or using any controlled substance; and/or (2) manage or control any place, whether permanently or temporarily, either as owner, lessee, agent, employee, occupant, or mortgagee, and knowingly and intentionally rent, lease, pro?t from, or make available for the use, with or without compensation, the place for the purpose of unlawfully manufacturing, storing, distributing, or using a controlled substance. 49. The conduct of the defendants, and others acting in concert with them, violated 21 U.S.C. 856 as the property on which the ?industrial hemp? was grown was used for the purpose of unlawfully manufacturing, storing, distributing, or using a controlled substance. 50. Pursuant to 21 U.S.C. 856(d), the United States is entitled to civil penalty from the defendants of not more than the greater of $250,000 or 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to the person. Under 21 U.S.C. 856(d)(2), the court may apportion the penalty between the defendants, but the defendants are jointly and severally liable for the civil penalty awarded pursuant to 21 U.S.C. 856. 51. The United States is also entitled to declaratory and injunctive relief for a violation of21 U.S.C. 856 pursuant to 21 U.S.C. 856(e) and 21 U.S.C. 843(f). COUNT 52. The United States hereby incorporates by reference paragraphs 1-51 as though fully set forth herein. 53. In violation of 21VU.S.C. 864, defendants, in concert with others, have conspired among themselves and with unknown individuals to violate the CSA. 14 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 15 of 18 PagelD 38 54. Defendants? actions, in concert with others, to conspire to violate the CSA are ongoing and continuing, and based, upon information and belief, are likely to continue unless enjoined by the court. COUNT IV 55. The United States hereby incorporates by reference paragraphs 1-54 as though fully set forth herein. 56. The marijuana plants, real property on which the plants have been grown, all equipment used to produce and manufacture those plants, all marijuana seeds and other marijuana plant components related thereto, are subject to seizure and forfeiture under 18 U.S.C. 981, 985 and 21 U.S.C. 881 and should be declared forfeited to the United States and all title and right to control those items and materials should be immediately vested in the United States. 57. Defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, should be barred and prohibited from destroying, altering, hiding, or spoiling all evidence, records, computer and digital information, and documents related to the marijuana plants, real property on which the plants have been grown, all equipment used to produce and manufacture those plants, and all marijuana seeds and other marijuana plant components related thereto which are the subject of this action. PRAYER FOR RELIEF WHEREFORE, plaintiff United States of America prays that this Court enter judgment against the defendants, and grant other and further relief, including, but not limited to, the following: 15 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 16 of 18 PagelD 39 1. Declare that defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, are in violation of 21 U.S.C. 841(a)(1) and other federal law by engaging in the possession, manufacture, and distribution of marijuana and possession with the intent to distribute marijuana, a Schedule I controlled substance. 2. Declare that defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, are in violation of 21 U.S.C. 856(a)(1) and other federal law by opening, maintaining, using, renting, leasing, managing, controlling, and/or utilizing the land and/or facilities described herein for the purpose of manufacturing, storing, possessing, distributing, or using a controlled substance. The United States also requests that the court award all penalties and damages to which it is entitled under 21 U.S.C. 856(d). 3. Declare that defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, are in violation of 21 U.S.C. 846 and other federal law by conSpiring among themselves and with unknown individuals to violate the CSA. 4. Enter a temporary restraining order, preliminary injunction, and permanent injunction enjoining the defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, from hereafter manufacturing, manufacturing with intent to distribute or distributing marijuana, a Schedule I controlled substance, or possessing marijuana with the intent to manufacture or distribute the substance in violation of 21 U.S.C. 841(a)(1). 16 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 17 of 18 PagelD 4O 5. Enter a temporary restraining order, preliminary injunction, and permanent injunction enjoining the defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, from hereafter opening, maintaining, using, renting, leasing, managing, controlling, and/or utilizing land and/or facilities for the purpose of manufacturing, storing, possessing, distributing, or using marijuana or any controlled substance in violation of 21 U.S.C. 856. 6. Enter a temporary restraining order, preliminary injunction, and permanent injunction enjoining the defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, from hereafter conspiring to violate the CSA. 7. Enter a temporary restraining order, preliminary injunction, and permanent injunction enjoining the defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, from harvesting, destroying, or altering in any way the marijuana plants or the property described herein located in Mason County, West Virginia. 8. Enter a temporary restraining order, preliminary injunction, and permanent injunction enjoining the defendants, together with their employees, servants, agents, and all others acting in concert with the defendants and those acting directly or indirectly on the defendants? behalf, barring and prohibiting them from destroying, altering, hiding, or spoiling any and all evidence, records, computer and digital information, and documents related to the marijuana plants, real property on which the plants have been grown, all equipment used to 17 Case 3:18-cv-01289 Document 3 Filed 09/11/18 Page 18 of 18 PagelD 41 produce and manufacture those plants, and all marijuana seeds and other marijuana plant components related thereto which are the subject of this action. 9. All other relief as the Court may deem just and equitable. . Dated: This September 11, 2018. 18 Respectfully submitted, MICHAEL B. STUART United States Attorney s/F red B. Westfall, Jr. WV State Bar No. 3992 Assistant United States Attorney Attorney for United States PO. Box 1713 Charleston, WV 25326 Phone: 304-345-2200 Fax: 304-347-5443 E?mail: fred.westfall@usdoi.gov Case Document 3-1 Filed 09/11/18 Page 1 of 3 PageID 42 EXHIBIT A Case Document 3-1 Filed 09/11/18 Page 2 of 3 PageID 43 53395 Notices Federal Register Vol. 81, N0. 155 Friday, August 12, 2016 This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. DEPARTMENT OF AGRICULTURE Office of the Secretary DEPARTMENT OF JUSTICE Drug Enforcement Administration DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration Statement of Principles on Industrial Hemp AGENCY: Office of the Secretary, Drug Enforcement Administration, Food and Drug Administration, HHS. ACTION: Notice SUMMARY: The US. Department of Agriculture, in consultation with the US. Drug Enforcement Administration and the US. Food and Drug Administration, has developed a Statement of Principles on Industrial Hemp to inform the public how Federal law applies to activities associated with industrial hemp that is grown and cultivated in accordance with Section 7606 of the Agricultural Act of 2014. The purpose of this notice is to set forth the statement in its entirety. DATES: This Statement of Principles is applicable August 12, 2016. FOR FURTHER INFORMATION CONTACT: Michael Poe, Telephone Number: [202) 720?3257. SUPPLEMENTARY INFORMATION: 1. Statement of Principles With publication of this notice, the US. Department of Agriculture (USDA) issues, with the concurrence of the US. Drug Enforcement Administration (DEA) and the US. Food and Drug Administration (FDA), the following Statement of Principles regarding the applicability of Federal laws to activities associated with growing and cultivating industrial hemp: Section 7606 of the Agricultural Act of 2014 legalized the growing and cultivating of industrial hemp for research purposes in States where such growth and cultivation is legal under State law, notwithstanding existing Federal statutes that would otherwise criminalize such conduct. The statutorily sanctioned conduct, however, was limited to growth and cultivation by an institution of higher education or State department of agriculture for purposes of agricultural or other academic research or under the auspices of a State agricultural pilot program for the growth, cultivation, or marketing of industrial hemp. Section 7606 authorized State departments of agriculture to promulgate regulations to carry out these pilot programs but did not provide a specific delegation to the US. Department of Agriculture (USDA) or any other agency to implement the program. As well, the statute left open many questions regarding the continuing application of Federal drug control statutes to the growth, cultivation, manufacture, and distribution of industrial hemp products, as well as the extent to which growth by private parties and sale of industrial hemp products are permissible. Section 7606 did not remove industrial hemp from the controlled substances list. Therefore, Federal law continues to restrict hemp- related activities, to the extent that those activities have not been legalized under section 7606. USDA, having consulted with and received concurrence from the US. Drug Enforcement Administration (DEA) and the US. Food and Drug Administration (FDA), therefore, is issuing this statement of principles to inform the public regarding how Federal law applies to activities involving industrial hemp so that individuals, institutions, and States that wish to participate in industrial hemp agricultural pilot programs can do so in accordance with Federal law. 0 The growth and cultivation of industrial hemp may only take place in accordance with an agricultural pilot program to study the growth, cultivation, or marketing of industrial hemp established by a State department of agriculture or State agency responsible for agriculture in a State where the production of industrial hemp is otherwise legal under State law. 0 The State agricultural pilot program must provide for State registration and certification of sites used for growing or cultivating industrial hemp. Although registration and certification is not further defined, it is recommended that such registration should include the name of the authorized manufacturer, the period of licensure or other time period during which such person is authorized by the State to manufacture industrial hemp, and the location, including Global Positioning System coordinates, where such person is authorized to manufacture industrial hemp. - Only State departments of agriculture, and persons licensed, registered, or otherwise authorized by them to conduct research under an agricultural pilot program in accordance with section 7606, and institutions of higher education [as defined in section 101 of the Higher Education Act of 1965 [20 U.S.C. 1001)), or persons employed by or under a production contract or lease with them to conduct such research, may grow or cultivate industrial hemp as part of the agricultural pilot program. 0 The term ?industrial hemp? includes the plant Cannabis sativa L. and any part or derivative of such plant, including seeds of such plant, whether growing or not, that is used exclusively for industrial purposes (fiber and seed) with a tetrahydrocannabinols concentration of not more than 0.3 percent on a dry weight basis. The term ?tetrahydrocannabinols? includes all isomers, acids, salts, and salts of isomers of tetrahydrocannabinols. - For purposes of marketing research by institutions of higher education or State departments of agriculture [including distribution of marketing materials), but not for the purpose of general commercial activity, industrial hemp products may be sold in a State with an agricultural pilot program or among States with agricultural pilot programs but may not be sold in States where such sale is prohibited. Industrial hemp plants and seeds may not be transported across State lines. 0 Section 7606 specifically authorized certain entities to ?grow or cultivate? industrial hemp but did not eliminate the requirement under the Controlled Substances Import and Case Document 3-1 Filed 09/11/18 Page 3 of 3 PageID 44 53396 Federal Register/Vol. 81, No. 156/Friday, August 12, 2016/Notices Export Act that the importation of viable cannabis seeds must be carried out by persons registered with the DEA to do so. In addition, any USDA phytosanitary requirements that normally would apply to the importation of plant material will apply to the importation of industrial hemp seed. 0 Section 7606 did not amend the Federal Food, Drug, and Cosmetic Act. For example, section 7606 did not alter the approval process for new drug applications, the requirements for the conduct of clinical or nonclinical research, the oversight of marketing claims, or any other authorities of the FDA as they are set forth in that Act. 0 The Federal Government does not construe section 7606 to alter the requirements of the Controlled Substances Act (CSA) that apply to the manufacture, distribution, and dispensing of drug products containing controlled substances. Manufacturers, distributors, dispensers of drug products derived from cannabis plants, as well as those conducting research with such drug products, must continue to adhere to the CSA requirements. 0 Institutions of higher education and other participants authorized to carry out agricultural pilot programs under section 7606 may be able to participate in USDA research or other programs to the extent otherwise eligible for participation in those programs. 2. Regulatory Requirements This Statement of Principles does not establish any binding legal requirements. It is, therefore, exempt from notice and comment rulemaking requirements under the Administrative Procedure Act pursuant to 5 U.S.C. 553(b). Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a]. USDA has determined that this Statement of Principles does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring OMB approval under the Paperwork Reduction Act, 44 U.S.C. 3501, et seq. Dated: July 25, 2016. Thomas I. Vilsack, Secretary ongricuIture. Dated: July 21, 2016. Louis I. Milione, Depu tyAssistant Administrator, Dru Enforcement Administration. Dated: July 22, 2016. Leslie Kux, Associate Commissioner for Policy, Food and Drug Administration. Doc. 2016?19146 Filed 8?11?16; 8:45 am] BILLING CODE DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service [Docket No. Okanagan Specialty Fruits, Availability of Preliminary Finding of No Significant Impact, Preliminary Plant Pest Risk Similarity Assessment, and Preliminary Determination for an Extension of a Determination of Nonregulated Status for Non-Browning Arctic? Apple Event NF872 Apple AGENCY: Animal and Plant Health Inspection Service, USDA. ACTION: Notice. SUMMARY: We are advising the public that the Animal and Plant Health Inspection Service has reached a preliminary decision to extend our determination of nonregulated status of Okanagan Specialty Fruits? (OSF) GS784 and GD743 apples to OSF NF872 ?Arctic? Fuji apple?. NF872 apple has been genetically engineered for enzymatic browning resistance using the same mode of action as GS784 and GD743 apples. We are making available for public comment our preliminary determination, preliminary plant pest risk similarity assessment, and preliminary finding of no significant impact for the proposed determination of nonregulated status. DATES: We will consider all comments that we receive on or before September 12, 2016. ADDRESSES: You may submit comments by either of the following methods: 0 Federal eBuIemaking Portal: Go to 6?004 3 . 0 Postal Mail/ Commercial Delivery: Send your comment to Docket No. Regulatory Analysis and Development, PPD, APHIS, Station 4700 River Road Unit 118, Riverdale, MD 20737?1238. The Okanagan Specialty Fruits extension request, our preliminary determination, preliminary plant pest risk similarity assessment, preliminary finding of no significant impact, and any comments we receive on this docket may be viewed at http:// 6-0043 or in our reading room, which is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 am. to 4:30 Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 799?7039 before coming. Supporting documents and any comments we received regarding our determination of nonregulated status of the antecedent organisms (apple events GD743 and GS784), can be found at 2-0025. Supporting documents may also be found on the APHIS Web site for NF8 72 ?Arctic? Fuji apple? (the organism under evaluation) under APHIS Petition Number 16?004?01p, and the antecedent organisms (apple events GD743 and GS784) under APHIS Petition Number 10?161?01p. FOR FURTHER INFORMATION CONTACT: Dr. John Turner, Director, Biotechnology Risk Analysis Programs, Biotechnology Regulatory Services, APHIS, 4700 River Road Unit 147, Riverdale, MD 20737? 1236; (301) 851?3954, email: john.t.turner@aphis.usdo.gov. To obtain copies of the supporting documents, contact Ms. Cindy Eck at (301) 851? 3885, email: aphis.usda.gov. SUPPLEMENTARY INFORMATION: Under the authority of the plant pest provisions of the Plant Protection Act (PPA) (7 U.S.C. 7701 et seq], the regulations in 7 CFR part 340, ?Introduction of Organisms and Products Altered or Produced Through Genetic Engineering Which Are Plant Pests or Which There Is Reason to Believe Are Plant Pests,? regulate, among other things, the introduction (importation, interstate movement, or release into the environment] of organisms and products altered or produced through genetic engineering that are plant pests or that there is reason to believe are plant pests. Such genetically engineered organisms and products are considered ?regulated articles.? The regulations in ?340.6(a) provide that any person may submit a petition to the Animal and Plant Health Inspection Service (APHIS) seeking a determination that an article should not be regulated under 7 CFR part 340. Further, the regulations in provide that a person may request that APHIS extend a determination of nonregulated status to other organisms. Such a request must include information to establish the similarity of the antecedent organism and the regulated article in question. Case Document 3-2 Filed 09/11/18 Page 1 of 4 PageID 45 EXHIBIT Case Document 3-2 Filed 09/11/18 Page 2 Of 4 PageID 46 WEST VIRGINIA DEPARTMENT OF AGRICULTURE PLANT INDUSTRIES DIVISION PLANT PEST REGULATORY PROGRAM 1900 KANAWHA BOULEVARD, EAST CHARLESTON, wv 25305-0191 (304) 550-2212 Walt Helmick Commissioner Application for Research and Marketing Cultivation of Industrial Hemp The West Virginia Industrial Hemp Development Act (Chapter 19, Article 12 Of the Code Of West Virginia, as amended) governs the production and distribution Of plant material commonly known as industrial Hemp. Under the provisions Of the Industrial Hemp Development Act, plants specifically identified as Cannabis sativa L. containing no more than 1% tetrahydrocannabinol, or the current limit allowed by federal law (whichever is more restrictive), and are used solely for the purposes authorized by the Act, are regulated by the West Virginia Department Of Agriculture (WVDA). It is unlawful for anyone to produce or distribute plants or parts of plants commonly known as industrial hemp unless that person has ?rst secured a certificate Of registration from the Commissioner Of Agriculture. SECTION 1: Business Name:cAMo ?5:1ng LLC. Proprietor: Matthew Mallory Proprietor Date of -, .-.. Proprietor SSN: Mailing Address: City: Pittsburgh State: Zip Code: 15243 Email Address: Matthew?camomedlcaLoom Phone: Cell Phoneh Do you have cooperators besides the WVDA who you expect to participate in this project? 9 Yes 0 NO If Yes, please list the cooperator(s) and provide copies Of any contracts or other agreements related to your project: West Virginia Farmers Cooperative, Morgan Leach Esq. SECTION 2: DESCRIPTION OF PRODUCTION SITE County of Production:Brooke County, Mason County District:Senate District 1 a Senate owm GPS Coordinates of Production Site: SeeAttachmentA?1 Parcel(s): NA Total Acreage in Production: 190 Do you have security measures at the production site? Yes 0 No If yes, please describe these measures including signage, fencing, etc.: Some grow sites have a fence and a gate. Game cameras will be intalled. The gte will be chained with a look. We will place signage (Attachment that informs the public to that this is a industrial research crop containing no Page 1 of 2 Case Document 3-2 Filed 09/11/18 Page 3 of 4 PageID 47 SECTTON 3: DESCRIPTION OF RESEARCH PROJECT (Include your plans for site selection; planting. maintenance. harvesting and post-harvest utilization of industrial hemp. Also include your proposed seed source and if you have con?rmed availability of seed. Please attach additional pages if needed.) See Attachment SECTION 4: By signing below the applicant acknowledges that industrial hemp is a Schedule 1, Federally Controlled Substance and agrees to the following terms and conditions: A. Any information provided to the Department. except criminal history records provided to the Department under this section, may be publicly disclosed and be provided to law enforcement agencies without further notice to the applicant; The applicant agrees to allow any inspection and sampling that the Department considers necessary; The applicant agrees to pay for any sampling and analysis costs that the Department considers necessary; and The applicant agrees to submit all required reports by the applicable due-dates speci?ed by the Commissioner. Date: V1013 Signature: Title: *Registration Fee: $100 plus $5.00 per acre in production: $1,050-00 for 190 acres *Make check or money order payable to West Virginia Department of Agriculture and return with this application. p.097 Mail to: WV Department of Agriculture Plant Industries Division 010 Eric Ewing 1900 Kanawha Blvd., East Charleston, WV 25305 if you have any questions or need assistance please call (304) 558?2212 or email eewing@wvda.us Page 2 of 2 Case Document 3-2 Filed 09/11/18 Page 4 of 4 PageID 48 Attachment M?kn . 071'. - . i ?4h, ~21TRESPASSING INDUSTRIAL HEMP $4 con-rAln's no THC CDA Registration it 12345 24 Hr Vldeo Surveillance in Operation 7 VIOLAT BE Io margaggmn Case Document 3-3 Filed 09/11/18 Page 1 of 2 PageID 49 EXHIBIT Document 3-3 Research and Marketing Cultivation of industrial Hemp License Kent Ccmmissicner Matthew Mallory CAMO HEMP WV. LLC 470 Drive PA 15243 Has paid application fees in accordanca the raqurraments? of Chaptar 19 Article 125 Section 7. of the State Code of HEMP WV LLC) has mat all :1 ace. sail distribute or deliver induatrial hamp within West Virginia provided the 1:3121i2'0i82 Case Document 3-4 Filed 09/11/18 Page 1 of 4 PageID 51 EXHIBIT Case Document 3-4 Filed 09/11/18 Page 2 of 4 PageID 52 IDA ATTACHMENT QUESTION 3: HEMP RESEARCH PROJECT DESCRIPTION Project Title: Industrial Hemp Soil Supply Nutritional Demand Research Question: What are the rates of nutrient and water application for industrial hemp to achieve maximum growth potential? Project Abstract: This project will be focused on determining the soil supply and nutritional demand requirements of industrial hemp for ?ber and seed. Plant nutrient content represents the effects of not only soil nutrient status, but also all the factors of plant growth. A single year?s information may not be use?rl for planning a soil fertility management program. However, as results are accumulated over a period of years, the information will become more valuable. All expenses will be recorded and evaluated for each phase of the research project and summarized in a ?nal report. The resulting plant nutritional data will enable large scale projects to reach ideal feeding schedules reducing future investment cost. Tests and observations for characteristics such as diameter of ?ber, height of the plant, density of seeds, etc. will be recorded and evaluated for each of the three hemp cultivars. In conclusion, the data resulting from these observations will be compiled into a summary and set of recommendations about the three hemp cultivars? nutritional needs. Objectives 1) Analysis to determine the nutritional demand of industrial hemp in soils. 2) Determine plant nutrient status, identifying nutrient de?ciency. 3) Determine the nitrogen uptake by hemp, by identifying the point at which hemp quality and yields no longer signi?cantly rise with additional nitrogen (Nitrogen applications are tracked, release rates are estimated and adjusted for expected losses, and the calculated total is compared to the expected daily crop need for nitrogen). 4) Determine the change in levels of Macro and Micro nutrients, watering needs, as well as alkalinity(pH) from before and after each successive crop. 5) Determine the total biomass per acre. 6) Publish and otherwise disseminate the results of the research projects developed through CAMO. (Publication of the results from the research projects will be accomplished in a way that protects proprietary information and potentially patentable intellectual property). Work plan Machinery reguirements These requirements include a disk harrow, seed drill, combine, 4x5 round baler, screen/winnowing cleaner. Upon approval of this project - Initial recording of the current conditions of the site will be taken. Framing of the site consists of a control area and incremental areas with increasing nutrient densities and watering rates. Preparation of soil - Minimal tillage with a disk harrow, row crop in and seed drilled into the ridges. Planting - Drill seeds before any weed development, after disking/harrowing, to keep the hemp plant growing to shade out any weeds. Harvest and threshing - Starts with combining the tops and then a side bar to cut the ?ber. The ?ber will be left to rhet in the ?eld and turned once in rows. When ready it will be baled. Seed Cleaning and Storgge - All seed will be cleaned and measured. Data Collection - The plants? development will be tracked via the recording of the stages of hemp utilizing the decimal coding system (Cannabis sativa L.) by Mediavilla et a1. (1998) For example, #2205 is a female plant at the end of seed maturity where 95% of seeds are hard or have shattered. All data collection will be done by the research director, including the frequency of use of nutrients, herbicide, weather data, and pesticide applications, etc. Procedures for the end of this Droiect - Most of the litter (leaf) material will have fallen off and started to compost back in the ?eld right around harvest. The ?ber/stalks will be rhetted in the ?eld and baled when the moisture is 15% - 18%. The bales will be stored at the storage location for future research use. Case 3:18-cv-01289 Document 3-4 Filed 09/11/18 Page 3 of 4 PageID 53 DA MD The seeds will be cleaned and stored in a cool dry secure location. All remaining material, leaf and ?ower, will be removed and composted into soil to destroy it. Timeline Activity Conducted by Timeframe Name of soil series, textural class and taxonomic Researcher ebruary-March classi?cation. Order seeds (through the WVDA) WVD A January Researcher Soil chemical analyses and physical properties of Researcher March 15th ?-April 15th the site. Tillage, preparing ?eld and soil Farmer March 15th April 15th Pre-emergence herbicide applications Farmer March 15th April 15th Gridding off research blocks. Researcher March 15* April 15th Drilling of seeds, date, rate, etc. Farmer May 7th - October 15?, 2018 (147 totaling days) Daily farming and maintenance Farmer As needed Recording of data via digital coding Researcher Daily, every 3 days minimum Nutrients Farmer As needed General pesticide Partner As needed Type, schedule and amount of irrigation Farmer As scheduled per test grid Harvest of seed tops, followed by the ?ber stalks. Farmer September 15?, 2017 (totaling 150 days) approximately 2 100 days needed for cultivar maturation Removal of leaves; cleaning of seed, rhetting of Farmer October 2nd - October 14th 2018 stalks in the ?eld Baling of stalks in the ?eld Farmer October 15th 2018 Soil samples (after harvest) Researcher October 15th 2018 Mulch remaining material into ?eld Farmer November Security Considerations Site is surrounded by fence. access through gate with a lock. Signage will be located at key visible locations/ entry points around the site. Two sides of the project South and West, are at the boundary of a heavily wooded forest area. Camo will install game cameras. Education is critical. In case of any vandalism, a public awareness information campaign can be implemented to inform the local community of the research project and its intent to dissuade future disturbances. Method of measuring project success: Case Document 3-4 Filed 09/11/18 Page 4 of 4 PageID 54 DA 1) Soil testing and summarizing the results of the control and variations of test plots. 2) Using a decimal code for the stages of hemp to track development and stages of growth over time. This enables tracking of the health and growth rate of the plants over time. Using the data and plotting out corresponding graphs, the data will reveal the bene?cial nutrient and water rations for the Speci?c cultivar grown. 3) Nutrient Monitoring Sample collection: the nutrient concentration in a plant varies with the plant?s age and the part of the plant sampled. The appropriate plant part must be collected for the age of the plant, and several plants must be included to obtain a representative sample. Speci?c directions on plant sampling generally are available from the plant analysis laboratory. 4) Diagnosing Nutrient Issues Plant tissue analyses are useful in diagnosing crop nutritional issues. Samples will be taken from the test areas and the control area for comparison. Identify the on the plants, note any patterns in the ?eld, and consider the timing of when the problem presented itself. 5) Soil testing and plant analysis can con?rm one another, when the cause of the problem is something other than a nutrient de?ciency in the soil. Things to consider include tillage, pesticide use, pests, di?erences in cultivars, and soil conditions such as compaction and moisture. The more data collected in this project, the more speci?c the three cultivars nutrient and water needs are identi?ed for each cultivar. Scaling up into a bigger project will be easier knowing the needs of the speci?c cultivars of industrial hemp. Plant material handling at end of project: testing and transport i. Anticipated hemp plant material, seed, or hemp products retained: Yes, plant materiel (bales), Stalks and seed will be destroyed. ii. Methods for destruction of any hemp plant material remaining at the end of the research project: Any Cannabis plant material le? over at the end of the project will be disked back into the soil. At the end of the last season of the project, the following year may produce volunteer plants which can be disked/ plowed back into the soil. During the project, every week, the farmers will survey the perimeter of the site to remove any volunteer plants outside the designated site boundary. Case Document 3-5 Filed 09/11/18 Page 1 of 4 PageID 55 EXHIBIT 3-5 Filed 09/11/18 Page 2 of 4 PageID 56 PAGE 61(63 neumnacapr SHIPPER 393 517 39:, ?"5'5"55 .chmau seen a GRAIN s?aassv RUN Fan-Is 3335 ST RT 1826 11551 KANAHHA VALLEY new 393 517 394 cumnn xv 42m HENDERSON 25m. oar ousassns (270)553-5310 09237253 nzsu can awn: unit mama-r vacuum a ?mupm? um nu; m; (amass-non tun/24x13 mm ?2'3 Tm cum. 1 nun; .m .334 WJA Av 5 ?mum ?rom on Fm mum.m 393 617 {55 k6" Wat,? m: wasntm mm burg-?nd, (S) calm VER . a HANDLIHB mums: um: the rumour}:- 4 5K HEMP seen 5255 {ammo-on 81? LTL FUEL ADJUSTMENT ups . RESIDENTIAL DELIVERY bkbh? *0 3f NONE CONSIBNEE PHDHEII 232.0? CUIIC FEET lilx: AA RON ACTUAL DENSITY 22 . PAGE 1 OF 2 c??l?n 9:5 man "All! TTL WI) can" mm: mun-r pmomn xilili i am WRAP gamma 1n: mm mm can cumin: mum M16 um um: YB 35mm mamas a mum?: or mu: is new as man cam: {31+ w? 249?? 3-5 Filed 09/11/18 Page 3 of 4 PageID 57 PAGE CONSBNEE Ian-Ivan usual? a a .L a yq Mica-I1 BILL 393 617 3 4 CITY 11m am: DIET ABVCAR a ups Freight an: DESCIIFTIOH OF ?This IND mm mm: mm: 1 51.nn sn.un 42.5n IN 1 scu 59.00 49.5n 45.5n 1n 1 sea 53.5n ?3.59 43.5n 1H 1 sex 51.5n 40.50 40.50 IN TDTAL cuaIc FEET: 232.071 BILL to. 0231222? HICKHIN saga a BRAIN UPBF s1an ursr sen 93125113 03959 PAGE 'onrr emf-1.? 3 ,mmr-A?ng 1 man EXCEPTIONS I DF "1 OF ABOVE 3-5 Filed 09/11/18 Page 4 of 4 PageID 58 33/63 wEBs PageTaH STRAIGHT am. or ms- SHIPPING ORDER NOT NEGOTTIIELE DATE: mo? 5 ups FREIGHT (UP-PI GDHSIGNEE BHIPPER RUN FARMS mow? SEED a. GRAIN COMPANY momma SE. a. GRAIN COMPANY ATTENTION: Itwoammw Wigwam: mm no. a: 11541 KANAWHA VALLEY ROAD 3335 STATE ROUTE 1923 3335 31'er ROUTE 1625 HENDERSON. wvzma OLMOII, KY 42031 SENTON. mama us us moms: 27113535319 PHONE: 2708536310 9 GUARANTEED MI. SEFMCE REQUESTED (II he: 1: mm: mummnqups th?um?lm d'lddm Imam all uni-Ia Inward anaemia and mammal! ?unmadua Wu 5 LTL GUARANTEED SERVICE REQUESTED no: la chasm) W12 gunman! mm. WON OF WEB. WT. "we. mus All SUI-EYE POE. mm DESGRIPTIDN OI: mucus SPECIAL mm WEIGHTIIMI NW6 1m 4 Pallat Hemp Seed 5235 - 100 103A .umad?huarmcmummnw. Raul ?numb-mm Irma august-mm malady-Tammi . can FEE . mama OOLLEOT can smurs cavemen RULES can can many Wanton mum cm? lemma can. BEFORE mm B- ?my?:ms PICKLP NUHBERS.. LIMITED access mm ?mm It "cum RESIDENTIAL pm I2 mm WEEKEND DELIVERY m: :22; ., LIFT GATE rs "Em mm seen-Team: WEMELEMGW CONSIBIEE CHEGKEOEPTABLE CERTFIED memm: h- I mn?mmn m'dL-unhm-u mam-wen mum athunt-Illa. 3km huh ?Imam. 7. (Signature) 1 ARRIVE mm mum ?Ill?l?mmll. Iu-Inmm Ion .IMM mu mum ?Hangman-1: I "BIT??cud? m:m;ym:? lgrhiu-nn- W4: tiling? mm a ?may" rmhum?w "mmnI-md?tu .172an :?dmm anew lullrud?onl: I) qumumm mm Hm mun-up.- um one-In humm n?m?mil'm. In z??mmem?WEI?3w?a?l?g nan-um Wmmb??m? ?manna? PDH 393617394 mailman Iumu'ppIIanI-uam-Hmu udhnainment Min all-dill: ?Mann-arid?! m?w?m?m?n?i . 0? ?Impo?am Finn-me: Hickman Seed BI Gain Campany DEPART Toesnmnou I owpmmum I?llLuna Manual Em main. and upwmsaiunumm Emmi: awaiting Carder: UPS leght 8m! ht Dali Reamu?a-H Case Document 3-6 Filed 09/11/18 Page 1 of 3 PageID 59 EXHIBIT Case Document 3-6 Filed 09/11/18 Page 2 of 3 PageID 60 West Virginia Department of Agriculture Kent A. Leonhardt, Commissioner Joseph L. Hatton, Deputy Commissioner Review Process Review: Once the application period has ended WVDA personnel will evaluate each application and do one of the following: 1. Accept your application and issue a ?Provisional License?. (Pending receipt/review of your WV State Police and FBI Background Checks.) 2. Accept your application and issue a ?Full License?. (if both background checks are on file and already approved.) 3. Refuse your application and return your payment. in each of the previous situations the WVDA will return a letter describing your status. (Again, applications received outside of the application period will be returned without consideration.) Background Check Process: Each approved applicant will be rqued to have ?ngerprints recorded. A WV State Police background check and an FBI Background Check must be completed and returned to this office for inclusion with each application package. The reports will be evaluated by the WVDA, considering past felony or convictions. (Contact me for further details on what might cause a refusal based on a background check.) ?Full Licenses" will not be issued to any applicant without both background checks on file and approved by the WVDA. (The applicant is solely responsible for the entire background check process although the timing may vary. Some applicants may want to submit their reports with their application while others wait for application approval before investing the funds to have the background checks completed.) Licensing: Generally, a ?Provisional License? will be issued when the application has been approved and before the background checks are reviewed by the WVDA. This allows the applicant to contact seed suppliers before being fully approved to grow hemp in WV. This offers a buffer while the background checks are performed by their parent agencies. If the background checks are submitted with the application and they are approved, the WVDA may issue the ?Full License" initially. It is imperative that all applicants be aware that without a "Full License" it is illegal to possess any form of cannabis plant material. Cannabis sativa in the hands of an individual not involved in a state administered Industrial Hemp Program is considered a controlled substance and subject to applicable laws. mailing address: 1900 Kanawha Blvd. East, Charleston, WV 25305-0170 physical address: 217 Gus R. Douglass Lane, Charleston, WV 25312 telephone: 3045583550 - fax: 304-558-2203 Case Document 3-6 Filed 09/11/18 Page 3 of 3 PageID 61 West Virginia Department of Agriculture Kent A. Leonhardt, Commissioner Joseph L. Hatton, Deputy Commissioner Obtaining Seed and Import Permits: The Drug Enforcement Administration has issued a registration to the WVDA to import industrial hemp seed from outside of the US. It is the applicant?s responsibility to locate and purchase seed. When international suppliers are located, all information is passed to me using a ?International Seed Source Form" and I will apply for an Import Permit on your behalf. Once approved by the DEA, I will forward the document to your supplier to include with the shipment. All international orders will be shipped to the Guthrie Office. At that point I will arrange the distribution of seed to the applicant only. Seed will only be distributed to ?Full License? holders. First time applicants will take possession of seed at the growing location during a site inspection visit. (The possibility exists that the WVDA will receive industrial hemp seed for a ?Provisional License? holder and not be able to distribute the seed to them. This would occur if the applicant failed to provide the required background checks or did not meet the approval of the WVDA.) Harvest Responsibilities: Once the crop is established the applicant is responsible for notifying the WVDA 30 days before the projected harvest date. The WVDA will arrange to visit and collect sample/s to verify the THC content is below (The cost of the visit, sampling and testing is the responsibility of the applicant. Costs can be estimated by the ?lndustn'al Hemp Sampling lnvoice?. If the crop is tested and found to be more than the amount allowed, destruction may be required.) After the crop is harvested the applicant must complete a ?Post Harvest Report". The report is due within 30 days of harvest. The objective is to collect information on the project in general. Information will be made available to the WV Legislature as required by the Industrial Hemp Development Act. This letter is not meant to address every possible question about the process. As always, you should contact me at the email/telephone below for further questions or comments. Regards, Michael C. Arnold Plant Regulatory Programs Coordinator 1900 Kanawha Blvd., East Charleston, WV 25305 marnold@wvda.us (304) 558-2212 mailingaddress: 1900 Kanawha Blvd. East, Charleston, WV 253050170 DhySicaladdressz217 Gus R. Douglass Lane, Charleston,WV25312 . . . . . -- - . Case 3:18-cv-01289 Document 3-7 Filed 09/11/18 Page 1 of 2 PageID #: 62 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA AT HUNTINGTON UNITED STATES OF AMERICA, Plaintiff, Civil Action No. 3:18-cv-01289 vs. MATIHEWMALLORY, CAMO HEMP WV LLC, GARY KALE, GRASSY RUN FARMS, LLC, their agents, servants, assigns, attorneys, and all others acting in concert with the named defendants, Defendants. VERIFICATION STATE OF WEST VIRGINIA, COUNTY OF KANAWHA, TO-WIT: M. T. Smith, after being duly sworn, deposes and says as follows: 1. I have read the VERIFIED COMPLAINT FOR DECLARATORY RELIEF; TEMPORARY, PRELIMINARY, AND PERMANENT INJUNCTIVE RELIEF; ASSET FORFEITURE; AND CIVIL PENALTIES ("Verified Complaint"). 2. The facts stated in the Verified Complaint are true and correct to the best of my knowledge, information, and belief. 3. The facts stated therein that are not within my personal knowledge are, upon information and belief, true and correct, and I am informed and believe that the facts stated therein are true and and correct. Case 3:18-cv-01289 Document 3-7 Filed 09/11/18 Page 2 of 2 PageID #: 63 M~ MI~ ~ First Sergeant West Virginia State Police Bureau of Criminal Investigations Taken, subscribed, and sworn to before me on this //~ ay of September, 2018. My ;....._~= --,} ;,'-;_ 2-0 _ :1_ 0_ _ _ _ _ _ _ __ commission expires: - =~-,,oe.....::c·=..:::.........:;i. ~~RIC~ NOTARY PUBLIC SEAL JS 44 (Rev. 08/18) 3:18-cv-01289 Case 3:18-cv-01289 Document 3-8 Filed 09/11/18 Page 1 of 1 PageID #: 64 CIVIL COVER SHEET The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) I. (a) PLAINTIFFS DEFENDANTS United States of America Matthew Mallory; CAMO Hemp WV LLC; Gary Kale; Grassy Run Farms, LLC Allegheny County, PA County of Residence of First Listed Defendant (b) County of Residence of First Listed Plaintiff (EXCEPT IN U.S. PLAINTIFF CASES) NOTE: (c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known) Fred B. Westfall, Jr., AUSA U.S. Attorney's Office 300 Virginia Street, E, Rm 4000, Charleston, WV 25301 II. BASIS OF JURISDICTION (Place an “X” in One Box Only) u 1 U.S. Government Plaintiff u 3 Federal Question (U.S. Government Not a Party) u 2 U.S. Government Defendant u 4 Diversity (Indicate Citizenship of Parties in Item III) (IN U.S. PLAINTIFF CASES ONLY) IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. Unknown III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff (For Diversity Cases Only) PTF Citizen of This State u 1 DEF u 1 Citizen of Another State u 2 u 2 Incorporated and Principal Place of Business In Another State u 5 u 5 Citizen or Subject of a Foreign Country u 3 u 3 Foreign Nation u 6 u 6 IV. NATURE OF SUIT (Place an “X” in One Box Only) CONTRACT u u u u u u u u u u u u u u u u u u u u u u u u u u u u Click here for: Nature of Suit Code Descriptions. TORTS 110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of Overpayment & Enforcement of Judgment 151 Medicare Act 152 Recovery of Defaulted Student Loans (Excludes Veterans) 153 Recovery of Overpayment of Veteran’s Benefits 160 Stockholders’ Suits 190 Other Contract 195 Contract Product Liability 196 Franchise REAL PROPERTY 210 Land Condemnation 220 Foreclosure 230 Rent Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property u u u u u u u PERSONAL INJURY 310 Airplane 315 Airplane Product Liability 320 Assault, Libel & Slander 330 Federal Employers’ Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product Liability 360 Other Personal Injury 362 Personal Injury Medical Malpractice CIVIL RIGHTS 440 Other Civil Rights 441 Voting 442 Employment 443 Housing/ Accommodations 445 Amer. w/Disabilities Employment 446 Amer. w/Disabilities Other 448 Education and One Box for Defendant) PTF DEF Incorporated or Principal Place u 4 u 4 of Business In This State FORFEITURE/PENALTY PERSONAL INJURY u 365 Personal Injury Product Liability u 367 Health Care/ Pharmaceutical Personal Injury Product Liability u 368 Asbestos Personal Injury Product Liability PERSONAL PROPERTY u 370 Other Fraud u 371 Truth in Lending u 380 Other Personal Property Damage u 385 Property Damage Product Liability PRISONER PETITIONS Habeas Corpus: u 463 Alien Detainee u 510 Motions to Vacate Sentence u 530 General u 535 Death Penalty Other: u 540 Mandamus & Other u 550 Civil Rights u 555 Prison Condition u 560 Civil Detainee Conditions of Confinement u 625 Drug Related Seizure of Property 21 USC 881 u 690 Other LABOR u 710 Fair Labor Standards Act u 720 Labor/Management Relations u 740 Railway Labor Act u 751 Family and Medical Leave Act u 790 Other Labor Litigation u 791 Employee Retirement Income Security Act BANKRUPTCY u 422 Appeal 28 USC 158 u 423 Withdrawal 28 USC 157 PROPERTY RIGHTS u 820 Copyrights u 830 Patent u 835 Patent - Abbreviated New Drug Application u 840 Trademark SOCIAL SECURITY u 861 HIA (1395ff) u 862 Black Lung (923) u 863 DIWC/DIWW (405(g)) u 864 SSID Title XVI u 865 RSI (405(g)) FEDERAL TAX SUITS u 870 Taxes (U.S. Plaintiff or Defendant) u 871 IRS—Third Party 26 USC 7609 IMMIGRATION u 462 Naturalization Application u 465 Other Immigration Actions OTHER STATUTES u 375 False Claims Act u 376 Qui Tam (31 USC 3729(a)) u 400 State Reapportionment u 410 Antitrust u 430 Banks and Banking u 450 Commerce u 460 Deportation u 470 Racketeer Influenced and Corrupt Organizations u 480 Consumer Credit u 485 Telephone Consumer Protection Act u 490 Cable/Sat TV u 850 Securities/Commodities/ Exchange u 890 Other Statutory Actions u 891 Agricultural Acts u 893 Environmental Matters u 895 Freedom of Information Act u 896 Arbitration u 899 Administrative Procedure Act/Review or Appeal of Agency Decision u 950 Constitutionality of State Statutes V. ORIGIN (Place an “X” in One Box Only) u 1 Original Proceeding u 2 Removed from State Court u 3 Remanded from Appellate Court u 4 Reinstated or Reopened u 5 Transferred from Another District u 6 Multidistrict Litigation Transfer (specify) Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): u 8 Multidistrict Litigation Direct File 21 U.S.C. Sec. 801, et seq., Controlled Substances Act and Civil Asset Forfeiture VI. CAUSE OF ACTION Brief description of cause: Action to enjoin illegal conduct under controlled substances act. u CHECK IF THIS IS A CLASS ACTION VII. REQUESTED IN UNDER RULE 23, F.R.Cv.P. COMPLAINT: VIII. RELATED CASE(S) (See instructions): IF ANY JUDGE DATE CHECK YES only if demanded in complaint: u Yes u No JURY DEMAND: DEMAND $ DOCKET NUMBER SIGNATURE OF ATTORNEY OF RECORD s/Fred B. Westfall, Jr., AUSA 09/11/2018 FOR OFFICE USE ONLY RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE