Grover Beach shop had marijuana from illegal grow in Los Alamos, investigators say

A Grover Beach cannabis shop was shut down Thursday morning as part of a month-long investigation into illegal marijuana operations on the Central Coast, the Santa Barbara County Sheriff’s Office confirmed.

In a news release, the Sheriff’s department said a search warrant was served to 805 Beach Breaks in Grover Beach at 8:30 a.m.; upon arrival, the county’s Cannabis Compliance Team seized marijuana from an illegal operation in Los Alamos as well as related records, according to the release.

805 Beach Breaks is one of two licensed and operating marijuana dispensaries in Grover Beach. The store was the first in SLO County to open as a legal cannabis adult use business.

According to the Santa Barbara County Sheriff’s Office release, the team also served a warrant to an undisclosed location in Los Alamos Thursday morning, where investigators found “the largest marijuana growing operation they have investigated since the team formed in June of 2018.”

The team seized “hundreds of thousands of illegal plants and thousands of pounds of processed marijuana ready for sale” at the Los Almos location, according to the release.

“While the investigation is still ongoing, this case involves the issue of fraudulent licensing and the black-market diversion of cannabis,” read the release. “This diversion of cannabis into the illicit market is a public safety concern in that it doesn’t ensure the proper testing and licensing of the cannabis. It is also harmful to businesses that are complying with state and local laws and pay taxes on their proceeds.”

One of the owners, Brian Touey, of Nipomo, said he had no comment, citing advice from his attorneys.

Wendy Cronin, another owner, said she hasn’t been directly involved with the business since it opened after a falling out with the other partners, and doesn’t know what the basis for the investigation is.

“I haven’t heard from any law enforcement official and any of the other (partners), only my friends that saw the news stories on this,” Cronin said. “I haven’t ever even set foot inside of the store.”

The department said it is not releasing any new information on the investigation at this time.

Grover Beach Police Chief John Peters said the business permit allowing legal cannabis sales at 805 Beach Breaks was temporarily suspended Thursday morning. But Grover Beach City Manager Matt Bronson said it was re-instated by late Thursday afternoon.

The store has been re-opened for business, Touey said.

“805 Beach Breaks will be allowed to continue operating as a licensed commercial cannabis business until the City of Grover Beach is aware of any violations of its ordinances,” Bronson wrote in an emailed statement to The Tribune.

The Grover Beach Police Department has opened an investigation to determine if any illegal activity has occurred within the city, Bronson said.

This story was originally published March 28, 2019 at 4:42 PM.