The THC Club storefront is located along Houston’s South Loop West and is one of 18 locations in the city. (October 4, 2024)
Two owners of a Houston-area THC shop, THC Club, are among several people charged with money laundering and possession of more than 20 pounds of marijuana, according to court documents.
Brothers Krish Arora and Kyle Arora are accused of laundering more than $4 million between January 1, 2020 and September 25, 2020, according to documents. The investigation began in January when an undercover police officer allegedly obtained free samples from one of the chain’s 18 stores in Houston.
Nine people, including Krish and Kyle, are named in court documents, but only six have been charged so far. Store managers Chandeed Bond, Chris Bichette and Jalen Gunther were charged with money laundering, according to Harris County court documents. Rashan Dorsett, the suspected distributor, was also charged with money laundering.
The Harris County District Attorney’s Office (HCDAO) and Harris County Precinct 4 Constable’s Office (HCC4) began a joint investigation of all THC club locations in February, according to investigators. HCC4 investigators said they obtained 22 samples from a total of 18 locations during undercover operations from February 14 to September 16. The samples were “pre-rolled” cigarettes filled with a “green leafy substance” wrapped in smoking paper, also known as a joint.
All samples were also sent to the Harris County Forensic Laboratory for testing. According to the document, 21 of the 22 samples tested positive for marijuana. The remaining samples allegedly tested positive for Cannabis sativa L, also known as hemp, due to a “white powdery substance” found inside the pre-rolled joints.
Investigators also claim in court documents that more than 57 bank accounts were discovered. The documents state that HCDAO’s certified fraud examiners were able to track approximately $4.5 million in illegal proceeds from alleged money laundering.
On September 25th, search warrants were executed for all 18 THC Club locations. Approximately 20.69 pounds of bud, flower and leaf material was collected, according to documents.
The company said in a statement to ABC13 that it always follows the law.
“The THC club has operated legally and openly since its inception,” the statement said, adding, “While its owners have appeared in the media and testified before Congress, none of them have broken the law.” said. This complaint is based on a fundamental misunderstanding of law and fact, and we look forward to a speedy resolution in court. ”
Money laundering of more than $300,000 is a first-degree felony, punishable by up to life in prison and a fine of up to $10,000. Possession of 5 to 50 pounds of marijuana is a third-degree felony, punishable by up to 10 years in prison and a fine of up to $10,000.
The passage of Texas House Bill 1325 in 2019 has created confusion regarding the legality of certain THC, tetrahydrocannabinol products in Texas. This law was intended to regulate the cultivation of cannabis for purposes other than THC, such as the production of paper and other biodegradable products. However, the bill states that the plant must have a THC concentration of less than 0.3%, which some have interpreted as legalizing THC products that meet this threshold.
Interpretations of the law are still being reviewed through the court system. The Texas Supreme Court is expected to hear a 2021 case regarding the legality of the Texas Department of State Health Services’ attempt to ban THC products in the coming months.
