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Charles Hilkey Jr., the North San Juan man arrested Sept. 9 during a multi-agency drug raid, has been indicted by a grand jury in U.S. District Court on charges of conspiracy, manufacturing more than 1,000 marijuana plants and conspiracy to launder money.
Hilkey faces at least 10 years in prison for each of the conspiracy and marijuana-growing charges. He also faces as many as 20 years for the money laundering charge.
If Hilkey is found guilty, fines can reach $4 million for the first two charges and $500,000 for the third charge. Hilkey also faces the possibility forfeiture of a number of properties if it is determined they were used for drug trafficking.
If Hilkey is convicted of conspiracy for the manufacture of marijuana, he will have to forfeit “any property constituting or derived from proceeds obtained ... as a result of the violations and any property used, or intended to be used ... to commit or to facilitate the commission of said violations.”
The indictment lists eight parcels on the San Juan Ridge and $143,000 in cash.
The indictment goes on to state that if any property subject to forfeiture cannot be located or has been transferred or sold, the government can seek forfeiture of any other property belonging to Hilkey, up to the value of the forfeited property.
Rachelle Sari Garnitz and Bram Gabriel Lewis also were indicted for money laundering. They each face up to 20 years in prison, a $500,000 fine and as many as three years of supervised probation.
The three defendants were arraigned Thursday on the charges and pleaded not guilty, said Lauren Horwood, spokeswoman for the U.S. Attorney's Office in Sacramento. Hilkey was released on a $400,000 secured bond, and Garnitz and Lewis were each released on $50,000 unsecured bonds.
A status conference on the case has been set for Nov. 30.
On Sept. 9, almost 200 law enforcement officers and agents raided nine locations on property belonging to Hilkey, 55. Agents found 602 marijuana plants, 135 pounds of processed marijuana and $200,000 in cash, said Nevada County Sheriff Keith Royal.
Hilkey faces at least 10 years in prison for each of the conspiracy and marijuana-growing charges. He also faces as many as 20 years for the money laundering charge.
If Hilkey is found guilty, fines can reach $4 million for the first two charges and $500,000 for the third charge. Hilkey also faces the possibility forfeiture of a number of properties if it is determined they were used for drug trafficking.
If Hilkey is convicted of conspiracy for the manufacture of marijuana, he will have to forfeit “any property constituting or derived from proceeds obtained ... as a result of the violations and any property used, or intended to be used ... to commit or to facilitate the commission of said violations.”
The indictment lists eight parcels on the San Juan Ridge and $143,000 in cash.
The indictment goes on to state that if any property subject to forfeiture cannot be located or has been transferred or sold, the government can seek forfeiture of any other property belonging to Hilkey, up to the value of the forfeited property.
Rachelle Sari Garnitz and Bram Gabriel Lewis also were indicted for money laundering. They each face up to 20 years in prison, a $500,000 fine and as many as three years of supervised probation.
The three defendants were arraigned Thursday on the charges and pleaded not guilty, said Lauren Horwood, spokeswoman for the U.S. Attorney's Office in Sacramento. Hilkey was released on a $400,000 secured bond, and Garnitz and Lewis were each released on $50,000 unsecured bonds.
A status conference on the case has been set for Nov. 30.
On Sept. 9, almost 200 law enforcement officers and agents raided nine locations on property belonging to Hilkey, 55. Agents found 602 marijuana plants, 135 pounds of processed marijuana and $200,000 in cash, said Nevada County Sheriff Keith Royal.
Drug money bought property, feds say
According to a criminal complaint, Hilkey was a “significant cultivator of marijuana” with “numerous active marijuana cultivation sites” on nine parcels.Hilkey allegedly earned approximately $1.9 million in profits during the past two years, breaking up large sums into transactions of less than $10,000 to evade reporting requirements. Hilkey then allegedly would use those structured funds to buy property, pay down or pay off mortgages, and pay individuals and taxes. He allegedly used associates to help convert currency into money orders or cashier's checks, and used associates to purchase property.
Garnitz was named in the complaint as an associate who helped Hilkey purchase cashier's checks used to buy property; her residential address was listed as the location of a marijuana garden. Lewis was named as an associate who helped buy cashier's checks. He also was the owner of record for a parcel on which a marijuana farm allegedly was located.
In addition, several people were arrested on county warrants on Sept. 9, although the Nevada County District Attorney has not yet filed charges.
Melissa Thomas, 51, of North San Juan, was listed as owning one of the suspect properties. She was charged with planting or cultivating marijuana, booked into county jail and released on $10,000 bail. Douglas Schuurman, 32, of Clairmont, was charged with planting or cultivating marijuana; transporting or selling marijuana; and criminal conspiracy, booked into county jail and released on $10,000 bail.
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call 477-4229.
