Federal prosecutors have charged Virginia State Senator Louise Lucas and 6 other people in connection with an investigation into two Portsmouth cannabis businesses that authorities say were used to distribute marijuana illegally.
The case follows federal raids conducted in May this year at the two cannabis outlets. The DOJ said that FBI agents executing a search warrant found firearms and cannabis at both properties.
On October 22, prosecutors announced an eight-count indictment accusing the seven defendants of operating a criminal enterprise that allegedly sold recreational cannabis while presenting the businesses as lawful CBD and hemp retailers.
Federal officials said the investigation had been underway for several years. U.S. AG Todd Blanche stated that investigators had developed the case over an extended period based on evidence and information gathered during the probe.
Director of the FBI Kash Patel alleged that Lucas earned millions from the operation. He said investigators believe she obtained almost $5 million in what prosecutors characterize as illicit proceeds over nearly five years.
Prosecutors also cited a February conversation in which Lucas allegedly discussed the business in terms of building wealth, saying it represented a final opportunity to secure her family’s financial future.
Lucas, who entered the Virginia Senate in 1992 and became Senate president pro tempore in 2020, rejected the allegations publicly. In a post on X, she said she would not be pressured into backing down.
Virginia law distinguishes hemp products from marijuana, and recreational cannabis sales remain prohibited in the state. Licensed medical marijuana businesses are permitted, while lawmakers have separately taken steps toward establishing a broader adult-use market. That system is not scheduled to begin retail operations until next July. Cannabis also remains prohibited under federal law.
The DOJ says Lucas and one of her daughters opened The Cannabis Outlet in 2021. Another daughter and Lucas’ grandson allegedly handled distribution activities at the store.
Prosecutors say both businesses were connected through VA Freedom Life, a company Lucas helped establish in 2019 with Carlton Upton Jr. Lucas later identified herself as the company’s CEO and president.
Lucas faces five of the charges, including drug distribution conspiracy, racketeering, money laundering, and maintaining premises connected to drug activity.
The indictment has also raised questions about Lucas’ future in the state Senate. Gov. Abigail Spanberger said Lucas and her relatives should be allowed to defend themselves while expressing concern about the timing and broader implications of the federal case. House Speaker Don Scott similarly criticized what he described as political interference by the Trump administration, while acknowledging the seriousness of the accusations.
The case highlights the continuing conflict between state efforts to regulate cannabis and federal prohibition, leaving businesses operating in the sector exposed to significant legal risks.
The marijuana industry, including operators like Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), will be following how this case proceeds and the rulings made.
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