Burglaries of cash-only pot stores on the riseCOLORADO (ABC) -- They come in the middle of the night. Breaking through doors, heads and faces covered to hide from surveillance cameras. Sometimes, they bring guns.
By: Clayton Sandell, ABC News
COLORADO (ABC) -- They come in the middle of the night. Breaking through doors, heads and faces covered to hide from surveillance cameras. Sometimes, they bring guns.
Amid Colorado’s booming legal recreational and medical marijuana trade, thieves are busting into shops and grow facilities looking for cash, sometimes running out with pot plants worth thousands of dollars.
Kristi Kelly, owner of GoodMeds Marijuana Dispensary, was hit three times by burglars taking advantage of an industry that is drowning in cash.
In Denver alone, there have been 17 reported burglaries at marijuana grows, dispensaries or manufacturers since January first, according to numbers compiled by the Denver Police Department.
Part of what makes Kelly and thousands of legal marijuana business owners vulnerable is that they operate largely as cash-only companies, without the ability to open a bank account.
Kelly must pay her employees in cash that often smells like pot. She cannot use checks to pay taxes, or accept credit cards from customers. Banks keep shutting Kelly down because the US government still considers marijuana illegal, and banks must answer to federal regulators.
“In the last 18 months, I’ve lost six bank accounts,” she told ABC News. “I feel very paranoid. I feel I’m always looking over my shoulder even if I have nothing of value on me.”
Another company that wanted to remain anonymous showed ABC News how it paid taxes of $200,000 in cash.
Kelly recently turned her shop into a virtual fortress, complete with nine visible cameras — the others are hidden.
“I have complete control over who comes in and out,” she said.
Kelly said she made an effort to not keep large amounts of cash in one place. Moving the money around is a potentially dangerous prospect.
“Our security protocols change on a weekly basis,” Kelly said. “So if someone were to watch our patterns we wouldn’t have any patterns because every week we’re changing them. The times of day, the places, the locations, everything about the transfer of any of our valuable assets is taken into consideration.”
Other marijuana companies have also turned to heavily armed private security for help.