Police Hold 4 in ‘Franchise’ Pot Operation

It was, Santa Ana police said, almost a model of good sales franchising.

The retailers operated in a manner similar to fast-food outlets.

Moreover, they seemed to have a central wholesaler.

But these weren’t stores selling burgers or tacos. Instead, police said, they were up to 40 private houses that were retailing marijuana throughout southwest Santa Ana.

Rather than just shutting down the franchises piecemeal, the police hoped to nab the franchiser. On Wednesday, following an early morning raid at 1334 W. Civic Center Drive, police said they had succeeded in nailing the central distribution source.

” . . .The residence on Civic Center Drive was supplying the majority of these marijuana distribution houses in the southwest part of Santa Ana,” police said in a press release. Police added that the 7 a.m. raid resulted in the arrest of four suspects and the confiscation of 65 pounds of marijuana, valued at $75,000. Also seized in the raid were two handguns and $20,000 in cash, police said.

Suspects Booked

The arrests and seizures were made without incident, police said. The suspects were booked into Orange County Jail. They were identified as Gonzalo Gutierrez, 27; Mario Gonzalez, 28; Guadalupe Valencia, 19, and Maricela Gonzalez Valencia, 22, all of Santa Ana.

“It is our estimate that this house (on Civic Center Drive) was dealing approximately 500 pounds of marijuana per week to 40 or more street-level distribution houses,” police said. “That volume of activity would generate approximately $6 million in transactions per year based on the going price of $10 a baggie.”

Police said that the arrests Wednesday were the culmination of 10 months of undercover work aimed at locating the source of the marijuana. During those months, periodic arrests were made at 18 of the estimated 40 residences in southwest Santa Ana that were allegedly franchising the marijuana. During one raid in March, a police officer was wounded and a suspect was killed.