Two smoke shop owners arrested last month now face allegations of money laundering, prompting new developments in their case. The San Antonio Police Department executed a raid on Black Diamond Smoke Shop on the Northwest Side in August, apprehending owners Justin and Lynnesh Gonzalez on accusations of illegally selling THC products exceeding the legal 0.3 percent concentration threshold.
Daniel Mehler, attorney representing the shop and its owners, stated, “At this point, at this juncture, the state hasn’t produced any lab testing. So, they haven’t at this moment even proven what they were sold was THC to begin with.” The state now pursues the Gonzalez’s assets, alleging they were acquired through illicit profits. “They got a tip and then they start surveillance but, unfortunately , in this case, they’re wrong,” Mehler remarked, noting his awareness of the lawsuit despite not yet receiving formal service.
According to a 27-page legal document, the investigation into the smoke shop commenced in March when officers encountered an individual possessing a felony-quantity of THC oil and marijuana, which the individual claimed to have purchased from Black Diamond. Undercover detectives subsequently surveilled the establishment, conducting traffic stops on departing customers and executing ten in-store purchases of products themselves prior to the August 18 raid.
The lawsuit details the seizure of over $525,000 in cash, a 2021 black Mercedes, and numerous personal items from the Gonzalez’s. Officers also reportedly discovered additional cash, THC products, and weapons during the operation, with the seized items enumerated across approximately six pages of the filing.
On the day of the raid, the owners’ attorney confirmed he had not received a search warrant and remained uncertain about the specific targets of the investigation. Mehler asserts that all products sold at the shop complied with legal requirements prior to the July 31 prohibition on certain THC products. Hemp Industry Attorney Omar Cura, Jr., who maintains no involvement in the Black Diamond case, characterized the regulatory landscape as problematic, stating, “Just everything in this industry, the way the government has run it has been backwards.
It’s been horrible.” Cura acknowledged an ongoing “weed war,” emphasizing that cannabis regulations remain ambiguous for both business operators and consumers. He further explained, “Unfortunately, because the laws did change and the law enforcement has no other option than to follow the directives from the politicians, these raids or these breakdowns have to happen because they’re following the law.”
Mehler indicated that resolution will proceed through judicial proceedings. “It was all legal as our contention. They jumped the gun,” he declared. “This is all for naught and they should return all of these assets is our opinion.” The Gonzalez’s criminal court appearance is scheduled for late November.
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