“THC Club Owners Charged with Money Laundering for Selling Illegal Products, Records Reveal”

Cannabis dispensaries are now operating openly in almost every community. A search warrant targeting a Houston-area chain with over a dozen locations is shedding light on what police uncovered during undercover visits.
Pre-rolls and cannabis in colorful packaging were reportedly sold as legal marijuana, but lab tests referenced in the warrant indicated otherwise. The owners of the THC Club have been charged with money laundering for selling illegal products, though their attorney argues that the product is legal due to a loophole.
“This isn’t just a Texas issue; it’s a national issue,” said cannabis attorney Andrea Steel.
Harris County is gaining attention for its unprecedented legal action against a major player in Texas’ cannabis industry. On September 25, all 18 THC Club locations were raided after months of undercover operations. According to an 84-page search warrant obtained by ABC13, the cannabis “flower” purchased by undercover officers exceeded the legal THC limits.
The warrant also claims the shop violated packaging regulations. The investigation led to money laundering charges, with the District Attorney’s Office alleging the business profited from illegal sales. Over a four-year period, the THC Club allegedly laundered at least $4.5 million.
One employee reportedly told an undercover officer that their hemp was flash frozen to keep THC levels below legal limits. In a statement to ABC13, the company’s attorney responded:
“Our clients ran a 100% legal business. If the District Attorney’s Office and Precinct 4 take issue with the law, they should address it with the legislature, not by prosecuting law-abiding businessmen based on their interpretation of the law.”