district court, city and county of denver, … · district court, city and county of denver, ......

Of the 2016-2017 term of the Denver District Court in the year 2017; the 2016-2017

Colorado State Grand Jurors, chosen, selected and sworn in the name and by the authority of the

People of the State of Colorado, upon their oaths, present the following:

DISTRICT COURT, CITY AND COUNTY OF DENVER, COLORADO

1437 Bannock Street

Denver, CO 80202

THE PEOPLE OF THE STATE OF COLORADO,

v.

JOSEPH HOPPER (A.K.A. “JOEY HOPS”)

DARA WHEATLEY (A.K.A. “BOSS LADY”)

ADAM DONALDSON (A.K.A. “POPS”, “POPZ”)

JOSEPH SERGIO CRIVICI (A.K.A. “JOSEPH CRAVICI”)

HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A “MEMBER’S

ONLY”, “HOPPY CROPZ”, “HOPPZ CROPZ”, “HOPZ CROP”)

DERRICK BERNARD (A.K.A. “UGRILLA PHOENIXX”, “PHOENIXX

UGRILLA”, “PHEONUAX”)

NATHAN BERNHEISEL (A.K.A. “BERNIE, “SHANLEY LEONE”,

“FRANKIE”, “NATE”)

VICTORIA FERNANDEZ (A.K.A. “TORI”)

MARCEE SMITH (A.K.A. “MARLEY”)

ALEJANDRA GONZALEZ (A.K.A. “ALE”)

RAYLENE RUBIO (A.K.A. “RAY”, “RAE”, “RAYLEEN”,

“RAYLEAN”)

NICOLE SANDOVAL (A.K.A. “NIKKI”)

ASHLEY HEFNER

MELISSA COLMUS

Defendants. COURT USE ONLY

CYNTHIA COFFMAN, Attorney General

MICHAEL W. MELITO

Senior Assistant Attorney General

1300 Broadway, 9th Floor

Denver, CO 80203

720 508 6702

Reg. No. 36059

JON W. IPPOLITO

Special Assistant Attorney General

105 E. Vermijo Ave.

Colorado Springs, CO 80903

(719) 520-6000

Reg. No. 45002

ANDREW S. VAUGHAN


105 E. Vermijo Ave.

Colorado Springs, CO 80903

(719) 520-6000

Reg. No. 41223

Grand Jury Case No.:

16CR01

Ctrm: 259

COLORADO STATE GRAND JURY INDICTMENT

2

COUNT 1 Violation of the Colorado Organized Crime Control Act – Pattern of Racketeering-

Participation in Enterprise, §18-17-104(3) and §18-17-105, C.R.S. (F2) 37284

COUNT 2 Violation of the Colorado Organized Crime Control Act – Conspiracy/Endeavoring,

§18-17-104(4), C.R.S. (F2) 37285

COUNT 3 Violation of the Colorado Organized Crime Control Act – Pattern of Racketeering –

Acquire Interest in Enterprise, §18-17-104(2) C.R.S. (F2) 37283

COUNT 4 Distribution Of Marijuana (50 LBS) or Marijuana Concentrate (25 LBS), §18-18-

406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802P

COUNT 5 Possession with Intent to Manufacture or Distribute Marijuana (50 LBS) or

Marijuana Concentrate (25 LBS), §18-18-406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802U

COUNT 6 Conspiracy to Distribute, or Possess with Intent to Manufacture or Distribute,

Marijuana – (50 LBS) or Marijuana Concentrate (25LBS), §18-18-

406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802Z

COUNT 7 Money Laundering – Conduct Financial Transaction with Intent to Promote Crime,

§18-5-309(1)(A)(I), C.R.S. (F3) 12211

COUNT 8 Conspiracy to Commit Money Laundering – Conduct Financial Transaction with

Intent to Promote Crime, §18-5-309(1)(A)(I) and §18-2-201, C.R.S. (F4) CON

COUNT 9 Money Laundering – Transfer Monetary Instrument with Intent to

Promote Crime, §18-5-309(1)(B)(I), C.R.S. (F3) 12213

COUNT 10 Conspiracy to Commit Money Laundering – Transfer Monetary Instrument with

Intent to Promote Crime, §18-5-309(1)(B)(I) and §18-2-201, C.R.S. (F4) CON

COUNT 11 Keeping Property for Unlawful Distribution of Controlled Substances,

§18-18-411(1), C.R.S. (DM1) 33514

COUNT 12 Evasion of Taxes Administered by the Colorado Department of Revenue,

§39-21-118(1), C.R.S. (F5) 40021

COUNT 13 Conspiracy to Commit Evasion of Taxes Administered by the Colorado Department

of Revenue, §39-21-118(1) and §18-2-201, C.R.S. (F6) CON


§39-21-118(1), C.R.S. (F5) 40021

COUNT 15 Conspiracy to Commit Evasion of Taxes Administered by the Colorado Department

of Revenue, §39-21-118(1) and §18-2-201, C.R.S. (F6) CON

COUNT 16 Failure to File Return or Pay Tax, §39-21-118(3), C.R.S. (M) 40023

COUNT 17 Filing a False Tax Return, §39-21-118(4), C.R.S. (F5) 40024

COUNT 18 Forgery, §18-5-102(1)(C), C.R.S. (F5)

3

COUNT 19 Attempt To Influence A Public Servant, §18-8-306, C.R.S. (F4) 24051




COUNT 23 Special Offender – Conspiracy – Pattern of Sale, §18-18-407(1)(b), C.R.S. (DF-1)

33A43

COUNT 24 Special Offender – Organizer in Series of Violations with Others, §18-18-407(1)(F),

C.R.S. (DF1) 33A48

COUNT 25 Special Offender – Firearm, C.R.S. §18-18-407(1)(d)(II), C.R.S. (DF1) 33A45

COUNT 26 Filing a False Tax Return, §39-21-118(4), C.R.S. (F5) 40024


§39-21-118(1), C.R.S. (F5) 40021

4

INDEX OF DEFENDANTS

Defendant Date of Birth Counts

DERRICK BERNARD (A.K.A. “UGRILLA PHOENIXX”,

“PHOENIXX UGRILLA”, “PHEONUAX”)

03/22/1989 1,2,4-16, 25

NATHAN BERNHEISEL (A.K.A. “BERNIE, “SHANLEY

LEONE”, “FRANKIE”, “NATE”)

01/11/1980 1,2,4-16, 25

MELISSA COLMUS 01/18/1984 1,2,4-16, 18

JOSEPH SERGIO CRIVICI (A.K.A. “JOSEPH

CRAVICI”)

11/25/1983 1-16, 20, 23, 24

ADAM DONALDSON (A.K.A. “POPS”, “POPZ”) 06/23/1967 1-16, 23, 24

VICTORIA FERNANDEZ (A.K.A. “TORI”) 02/07/1995 1,2,4-16, 18, 21

ALEJANDRA GONZALEZ (A.K.A. “ALE”) 3/18/1995 1,2,4-16, 18

ASHLEY HEFNER 04/25/1988 1,2,4-16, 18, 22

JOSEPH HOPPER (A.K.A. “JOEY HOPS”) 06/16/1983 1-16, 18, 23, 24

HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A

“MEMBER’S ONLY”, “HOPPY CROPZ”, “HOPPZ

CROPZ”, “HOPZ CROP”)

N/A 1-18, 20

RAYLENE RUBIO (A.K.A. “RAY”, “RAE”,

“RAYLEEN”, “RAYLEAN”)

02/07/1995 1,2,4-16, 19

NICOLE SANDOVAL (A.K.A. “NIKKI”) 10/13/1995 1,2,4-16, 18, 21

MARCEE SMITH (A.K.A. “MARLEY”) 03/27/1994 1,2,4-16, 18

DARA WHEATLEY (A.K.A. “BOSS LADY”) 12/16/1988 1-18, 23, 24, 26, 27

5

COUNT 1

Violation of the Colorado Organized Crime Control Act – Pattern of Racketeering- Participation in

Enterprise, §18-17-104(3) and §18-17-105, C.R.S. (F2) 37284

On or about and between July 1, 2016 and May 25, 2017, in and triable in the State of Colorado,

JOSEPH HOPPER, DARA WHEATLEY, ADAM DONALDSON, JOSEPH SERGIO

CRIVICI, HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A MEMBER’S ONLY,

HOPPY CROPZ, HOPPZ CROPZ, HOPZ CROP), DERRICK BERNARD (A.K.A.

“UGRILLA PHOENIXX”, “PHOENIXX UGRILLA”, “PHEONUAX”), NATHAN

BERNHEISEL (A.K.A. “BERNIE”, “SHANLEY LEONE”, “FRANKIE”, “NATE”),

VICTORIA FERNANDEZ (A.K.A. “TORI”), MARCEE SMITH (A.K.A. “MARLEY”),

ALEJANDRA GONZALEZ (A.K.A. “ALE”), RAYLENE RUBIO, NICOLE SANDOVAL,

ASHLEY HEFNER, MELISSA COLMUS and others known and unknown to the Grand Jury, while employed by or associated with an enterprise, namely a group of individuals associated in fact,

although not a legal entity, unlawfully, feloniously, and knowingly conducted or participated, directly

or indirectly, in the enterprise through a pattern of racketeering activity: in violation of §18-17-104(3)

and §18-17-105, C.R.S. (F2), and against the peace and dignity of the People of the State of Colorado.

COUNT 2

Violation of the Colorado Organized Crime Control Act – Conspiracy/Endeavoring,

§18-17-104(4), C.R.S. (F2) 37285









ASHLEY HEFNER, MELISSA COLMUS and others known and unknown to the Grand Jury

did unlawfully, knowingly, and feloniously conspire to conduct and participate, directly or indirectly,

in an enterprise, through a pattern of racketeering activity in violation of C.R.S. §18-17-104(4) and

§18-17-104(3), C.R.S. (F2), and against the peace and dignity of the People of the State of Colorado.

COUNT 3

Violation of the Colorado Organized Crime Control Act – Pattern of Racketeering – Acquire Interest

in Enterprise, §18-17-104(2) C.R.S. (F2) 37283




HOPPY CROPZ, HOPPZ CROPZ, HOPZ CROP) and others known and unknown to the

Grand Jury, did unlawfully, feloniously, and knowingly acquired or maintained, directly or

indirectly, an interest in or control of an enterprise, namely: HOPPZ’ CROPZ through a pattern of

racketeering activity or through the collection of an unlawful debt; in violation of §18-17-104(2),

C.R.S. (F2), and against the peace and dignity of the People of the State of Colorado.

6

The offenses alleged in Counts One, Two and Three were committed in the following manner:

The Enterprise

The enterprise alleged in Counts One, Two and Three consisted of a group of individuals,

associated in fact, and at least one legal entity. The enterprise included, the following associated in

fact individuals, a group of individuals, along with a legal entity and/or other entities: JOSEPH

HOPPER, DARA WHEATLEY, ADAM DONALDSON, JOSEPH SERGIO CRIVICI, HOPPZ’

CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A MEMBER’S ONLY, HOPPY CROPZ, HOPPZ

CROPZ, HOPZ CROP), DERRICK BERNARD (A.K.A. “UGRILLA PHOENIXX”, “PHOENIXX

UGRILLA”, “PHEONUAX”), NATHAN BERNHEISEL (A.K.A. “BERNIE”, “SHANLEY

LEONE”, “FRANKIE”, “NATE”), VICTORIA FERNANDEZ (A.K.A. “TORI”), MARCEE SMITH

(A.K.A. “MARLEY”), ALEJANDRA GONZALEZ (A.K.A. “ALE”), RAYLENE RUBIO, NICOLE

SANDOVAL, ASHLEY HEFNER, MELISSA COLMUS and others both known and unknown to the

Grand Jury, who were associated from time to time in the racketeering activity related to the conduct

of the enterprise.

The above persons and entity that associated with the enterprise, and the enterprise itself,

engaged in a scheme whereby the members conspired to purchase medical marijuana from licensed

facilities and resell it for profit under the guise the marijuana was being offerred as a free giveaway

with the purchase of a dramatically overpriced, yet low cost, item. In essence, the enterprise

possessed and distributed marijuana -and conspired to do the same- in Colorado Springs, Colorado

while simultaneously engaging in tax evasion, money laundering, attempts to influence public

servants, filing false tax information and failing to pay over taxes.

Joseph Hopper, his fiancée Dara Wheatley, Joseph Sergio Crivici and Adam Donaldson

opened or joined in the ownership of marijuana distributing franchises. Under the brand “Hoppz’

Cropz” these individuals leased storefronts at 2402 East Boulder St., Colorado Springs, Colorado and

2549 Delta Dr., Colorado Springs, Colorado. Acting as owners and high managerial agents, the four

owners used the Hoppz’ Cropz storefronts and Hoppz’ Cropz employees1 to sell marijuana along with

paraphernalia. The owner-managers and their employees engaged in a “free giveaway” ruse

combining sales of drug-related tangible personal property along with marijuana itself. 2 Members of

the enterprise routinely hand out a Hoppz’ Cropz form deceitfully acknowledging the store is gifting

patrons -without remuneration- less than two ounces of marijuana pursuant to Amendment 64.

Despite local ordinances against retail recreational marijuana stores, the drug trafficking organization

(“DTO”) through the Hoppz’ Cropz stores, skirted civil enforcement by the City of Colorado Springs

and ultimately trafficked nearly 200 pounds of finished/refined marijuana since its July of 2016

inception.

Detectives calculated the aggregate amount of nearly 200 pounds of illegally distributed

marijuana by Hoppz’ Cropz owners and employees using inventory records seized during the

execution of search warrants in the two Hoppz’ Cropz stores. Inventories from Hoppz’ Delta

indicated the daily amount of marijuana sold averaged 250.4 grams. By significantly underestimating

this average amount at 200 grams and multiplying it by the number of days Hoppz’ Delta has been

1 The employees of Hoppz’ Cropz managed by Joseph Hopper, Dara Wheatley, Adam Donaldson and Joseph Sergio Crivici,

include but are not limited to: Derrick Bernard, Nathan Bernheisel, Victoria Fernandez, Marcee Smith, Alejandra Gonzalez,

Raylene Rubio, Nicole Sandoval Ashley Hefner, Melissa Colmus, “Tim”, “Mike”, “Alan”, “Nikki”, “Kelsey”, “Ashlie”,

“Bree”, “Shay”, “Dejanique Trashai”, “Patricia”, “Justin”, “John”, “Laura” and “Felicia.” 2 By way of limited example, the members of the enterprise sold cheap lighters -worth a few cents- for $15 and employed

the ruse that the business was giving away one gram of marijuana for free along with the $15 lighter. The street value of one

gram of marijuana is approximately $15.

7

open (July 15, 2016, to May 6, 2017 = 42 weeks = 294 days), the total amount of marijuana sold can

be estimated at approximately 58,800 grams, or 129.6 pounds at the Hoppz’ Delta store alone.

Inventories from the “Hoppz’ Boulder” indicated the monthly amount of marijuana sold averaged at

4,418.33 grams. By significantly underestimating this average amount at 4,000 grams and multiplying

it by the number of months Hoppz’ Boulder has been open (October, 2016, to April, 2017 = 7

months), the total amount of marijuana sold can be estimated at approximately 28,000 grams, or 61.7

pounds. This results in an approximate, conservatively estimated total of marijuana sold through both

stores at 86,800 grams, or 191.3 pounds.

With this ruse in place, Hoppz’ Cropz succesfully evaded paying fees regularly associated

with retail recreational marijuana dispensary licensure and evaded excise taxes that an otherwise fully

licensed retail recreational dispensary would normally be required to pay to the Department of

Revenue. In effect, Hoppz’ Cropz, LLC, its owners and employees contributed to the recreational

marijuana black market. Despite opening a sales tax account with the Colorado Department of

Revenue in July of 2016 and engaging in conventional retail sales of parphernalia and clothing (as

well as illicit marijuana sales), Hoppz’ Cropz, LLC, its owner-managers and employees failed to

report the proper figures on nearly half a million dollars in retail sales. Moreover, the managers and

lower level members of the enterprise engaged in a second form of tax evasion by promoting and

receiving “under the table” payments of wages, thereby evading the associated wage withholding

taxes otherwise due to the Colorado Department of Revenue. Indeed, managers instructed the

workers to engage in deceit and inform any government officials who inquired that they –the

salespersons- were merely volunteers working at their respective stores without pay.

Pattern of Racketeering Activity

For purposes of Counts One, Two and Three, JOSEPH HOPPER, DARA WHEATLEY,

ADAM DONALDSON, JOSEPH SERGIO CRIVICI, HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’

CROPZ, A.K.A MEMBER’S ONLY, HOPPY CROPZ, HOPPZ CROPZ, HOPZ CROP), DERRICK

BERNARD (A.K.A. “UGRILLA PHOENIXX”, “PHOENIXX UGRILLA”, “PHEONUAX”),

NATHAN BERNHEISEL (A.K.A. “BERNIE”, “SHANLEY LEONE”, “FRANKIE”, “NATE”),



ASHLEY HEFNER, MELISSA COLMUS and others known and unknown to the Grand Jury,

directly and in concert, engaged in, attempted to engage in, conspired to engage in, or solicited

another to engage in at least two predicate acts, and any lesser included offenses as permitted in §18-

17-103, related to the conduct of the enterprise, at least one of which took place in the State of

Colorado after July 1, 1981 and the last of the acts of racketeering activity occurring within ten years

after a prior act of racketeering activity and include:

Distribution of Marijuana or Marijuana Concentrate

Conspiracy to Distribute or Possess with Intent to Manufacture or Distribute Marijuana or

Marijuana Concentrate

Possession with Intent to Manufacture or Distribute Marijuana or Marijuana Concentrate

Money Laundering

Evasion of Taxes Administered by the Colorado Department of Revenue

Conspiracy to Commit Evasion of Taxes Administered by the Colorado Department of

Revenue

Failure to File a Return or Pay Tax

Filing of a False Return

8

Keeping Property for Unlawful Distribution of Controlled Substances

Attempt to Influence a Public Servant

And the Predicate Act of: Unlawful Use of a Communications Facility.

RACKETEERING ACTIVITY

The acts of racketeering activity that the above named persons and/or entities committed,

attempted to commit, conspired to commit, or solicited, coerced, or intimidated another person to

commit, consist of the following predicate acts, including any lesser included offenses permitted to be

used as predicates under this statute:

Counts Four through Twenty Two and all other identified Predicate Act(s) set forth the

essential relevant acts of racketeering and are incorporated in these Counts One, Two and Three by

this reference. The relevant acts of racketeering activity include any lesser included offenses of

Counts Four through Twenty Two and all other identified Predicate Acts.

COUNT 4

Distribution Of Marijuana (50 LBS) or Marijuana Concentrate (25 LBS), §18-18-

406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802P









ASHLEY HEFNER, MELISSA COLMUS, and others known and unknown to the Grand Jury, unlawfully, feloniously, and knowingly sold or distributed, or attempted to sell or distribute marijuana

or marijuana concentrate. Further, the amount of marijuana was more than fifty pounds or the

marijuana concentrate was more than twenty five pounds, in violation of §18-18-406(2)(b)(I),(III)(A),

C.R.S. (DF1), and against the peace and dignity of the People of the State of Colorado.

COUNT 5

Possession with Intent to Manufacture or Distribute Marijuana (50 LBS) or Marijuana Concentrate

(25 LBS), §18-18-406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802U










unlawfully, feloniously, and knowingly possessed, or attempted to possess, with intent to

manufacture, sell or distribute, marijuana or marijuana concentrate. Further, the amount of marijuana

9

was more than fifty pounds or the amount of marijuana concentrate was more than twenty five

pounds; in violation of §18-18-406(2)(b)(I),(III)(A), C.R.S. (DF1), and against the peace and dignity

of the People of the State of Colorado.

COUNT 6

Conspiracy to Distribute, or Possess with Intent to Manufacture or Distribute, Marijuana – (50 LBS)

or Marijuana Concentrate (25LBS), §18-18-406(2)(B)(I),(III)(A), C.R.S. (DF1) 8802Z









ASHLEY HEFNER, MELISSA COLMUS, and others known and unknown to the Grand Jury,

unlawfully, feloniously, and knowingly conspired with one another and with a person or persons

known and unknown to the Grand Jury, to sell, distribute, or possess with intent to manufacture, sell

or distribute marijuana or marijuana concentrate. Further, the amount of marijuana was more than

fifty pounds or the amount of marijuana concentrate was more than twenty five pounds, in violation

of §18-18-406(2)(b)(I),(III)(A), C.R.S. (DF1), and against the peace and dignity of the People of the

State of Colorado.

COUNT 7

Money Laundering – Conduct Financial Transaction with Intent to Promote Crime,

§18-5-309(1)(A)(I), C.R.S. (F3) 12211










unlawfully and feloniously, conducted or attempted to conduct a financial transaction that involved

money or any other thing of value that the defendant knew or believed to be the proceeds, in any

form, of a criminal offense, with the intent to promote the commission of a criminal offense; in

violation of §18-5-309(1)(A)(I), C.R.S. (F3), and against the peace and dignity of the People of the

State of Colorado.

10

COUNT 8

Conspiracy to Commit Money Laundering – Conduct Financial Transaction with Intent to Promote

Crime, §18-5-309(1)(A)(I) and §18-2-201, C.R.S. (F4) CON










with the intent to promote or facilitate the commission of the crime of Money Laundering – Conduct

Financial Transaction with Intent to Promote Crime, unlawfully and feloniously agreed with one

another that one or more of them would engage in conduct which constituted that crime or an attempt

to commit that crime, or agreed to aid the other person or persons in the planning or commission or

attempted commission of that crime, and an overt act in pursuance of the conspiracy was committed

by one or more of the conspirators; in violation of §18-5-309(1)(A)(I) and §18-2-201, C.R.S. (F4),

and against the peace and dignity of the People of the State of Colorado.

COUNT 9

Money Laundering – Transfer Monetary Instrument with Intent to

Promote Crime, §18-5-309(1)(B)(I), C.R.S. (F3) 12213










unlawfully and feloniously transported, transmitted, or transferred a monetary instrument or moneys,

with the intent to promote the commission of a criminal offense, in violation of §18-5-309(1)(B)(I),

C.R.S. (F3) and against the peace and dignity of the People of the State of Colorado.

COUNT 10

Conspiracy to Commit Money Laundering – Transfer Monetary Instrument with Intent to

Promote Crime, §18-5-309(1)(B)(I) and §18-2-201, C.R.S. (F4) CON







11




with the intent to promote or facilitate the commission of the crime of Money Laundering – Transfer

Monetary Instrument with Intent to Promote Crime, unlawfully and feloniously agreed with one

another that one or more of them would engage in conduct which constituted that crime or an attempt

to commit that crime, or agreed to aid the other person or persons in the planning or commission or

attempted commission of that crime, and an overt act in pursuance of the conspiracy was committed

by one or more of the conspirators; in violation of §18-5-309(1)(B)(I) and §18-2-201, C.R.S. (F4),


COUNT 11

Keeping Property for Unlawful Distribution of Controlled Substances,

§18-18-411(1), C.R.S. (DM1) 33514










knowingly or intentionally kept, maintained, controlled, rented, leased, or made available for use a

store, shop, warehouse, dwelling, building, vehicle, vessel, aircraft, room, enclosure, or other

structure or place, which the defendant knew was resorted to for the purpose of keeping for

distribution, transporting for distribution, or distribution of a controlled substance; in violation of

§18-18-411(1), C.R.S. (DM1), and against the peace and dignity of the People of the State of

Colorado.

COUNT 12

Evasion of Taxes Administered by the Colorado Department of Revenue,

§39-21-118(1), C.R.S. (F5) 40021










did unlawfully, feloniously and willfully attempt to evade and defeat a tax administered by the

Colorado Department of Revenue, or a payment thereof namely, state wage withholding tax in

violation of §39-21-118(1), C.R.S. (F-5), and against the peace and dignity of the People of the State

of Colorado.

12

COUNT 13

Conspiracy to Commit Evasion of Taxes Administered by the Colorado Department of Revenue,

§39-21-118(1) and §18-2-201, C.R.S. (F6) CON










with the intent to promote or facilitate the commission of the crime of Evasion of Taxes Administered

by the Colorado Department of Revenue, unlawfully and feloniously agreed with one another that one

or more of them would engage in conduct which constituted that crime or an attempt to commit that

crime, or agreed to aid the other person or persons in the planning or commission or attempted

commission of that crime, and an overt act in pursuance of the conspiracy was committed by one or

more of the conspirators; in violation of §39-21-118(1) and §18-2-201, C.R.S. (F6), and against the

peace and dignity of the People of the State of Colorado.

COUNT 14


§39-21-118(1), C.R.S. (F5) 40021










did unlawfully, feloniously and willfully attempt to evade and defeat a tax administered by the

Colorado Department of Revenue, or a payment thereof namely, state sales tax in violation of §39-21-

118(1), C.R.S. (F-5), and against the peace and dignity of the People of the State of Colorado.

COUNT 15

Conspiracy to Commit Evasion of Taxes Administered by the Colorado Department of Revenue,

§39-21-118(1) and §18-2-201, C.R.S. (F6) CON







13




with the intent to promote or facilitate the commission of the crime of Evasion of Taxes Administered

by the Colorado Department of Revenue, unlawfully and feloniously agreed with one another that one

or more of them would engage in conduct which constituted that crime or an attempt to commit that

crime, or agreed to aid the other person or persons in the planning or commission or attempted

commission of that crime, and an overt act in pursuance of the conspiracy was committed by one or

more of the conspirators; in violation of §39-21-118(1) and §18-2-201, C.R.S. (F6), and against the

peace and dignity of the People of the State of Colorado.

COUNT 16

Failure to File Return or Pay Tax, §39-21-118(3), C.R.S. (M) 40023

On or about and between August 21, 2016 and May 21, 2017, in and triable in the State of Colorado,



HOPPY CROPZ, HOPPZ CROPZ, HOPZ CROP) and others known and unknown to the

Grand Jury, unlawfully and willfully failed to pay a tax or estimated tax, make a return, keep tax

records, or supply tax information as required; in violation of §39-21-118(3), C.R.S. (M), and against

the peace and dignity of the People of the State of Colorado.

COUNT 17

Filing a False Tax Return, §39-21-118(4), C.R.S. (F5) 40024

On or about April 16, 2017 in and triable in the State of Colorado, DARA WHEATLEY and

HOPPZ’ CROPZ, LLC, unlawfully, feloniously, and willfully made and subscribed returns,

statements, or other documents, which contained or were verified by a written declaration that they

were made under the penalties of perjury, and which the defendant did not believe to be true and

correct as to every material matter; in violation of §39-21-118(4), C.R.S. (F5), and against the peace

and dignity of the People of the State of Colorado.

COUNT 18

Forgery, § 18-5-102(1)(C), C.R.S. (F5)

On or about and between July 1, 2016 and May 25, 2017, in the State of Colorado, JOSEPH

HOPPER, DARA WHEATLEY, ADAM DONALDSON, JOSEPH SERGIO CRIVICI,

HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A MEMBER’S ONLY, HOPPY

CROPZ, HOPPZ CROPZ, HOPZ CROP), VICTORIA FERNANDEZ (A.K.A. “TORI”),

MARCEE SMITH (A.K.A. “MARLEY”), ALEJANDRA GONZALEZ (A.K.A. “ALE”),

RAYLENE RUBIO, NICOLE SANDOVAL, ASHLEY HEFNER, MELISSA COLMUS, with

the intent to defraud Hoppz’ Cropz customers including but not limited to Michael Adam Hughes,

Chace Passanante, Joey Harris and those individual customers identified below in “Attachment A”,

unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which

was or which purported to be, or which was calculated to become or to represent if completed, a deed,

will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument

which document did or may have evidenced, created, transferred, terminated, or otherwise affected a

legal right, interest, obligation, or status, namely: a contract pertaining to Hoppz’ Cropz customers’

14

Amendment 64 rights; in violation of §18-5-102(1)(c), C.R.S. (F-5), and against the peace and dignity

of the People of the State of Colorado.

COUNT 19

Attempt To Influence A Public Servant, §18-8-306, C.R.S. (F4) 24051

On or about November 17, 2016, in and triable in the State of Colorado, RAYLENE RUBIO

unlawfully and feloniously attempted to influence Colorado Springs Police Department Detective

Nick Bayne, who is a public servant, by means of deceit, with the intent thereby to alter or affect the

public servant’s decision, vote, opinion, or action concerning a matter which was to be considered or

performed by the public servant or the agency or body of which the public servant was a member; in

violation of §18-8-306, C.R.S. (F-4), and against the peace and dignity of the People of the State of

Colorado.

COUNT 20


On or about May 2, 2017, in and triable in the State of Colorado, JOSEPH SERGIO CRIVICI and

HOPPZ’ CROPZ, LLC unlawfully and feloniously attempted to influence Colorado Springs Police

Department Sergeant Roger Vargason and or Colorado Springs Police Department Detective Nick

Bayne, who are public servants, by means of deceit, with the intent thereby to alter or affect the

public servants’ decisions, votes, opinions, or actions concerning a matter or matters which were to be

considered or performed by the public servants or the agency or body of which the public servants

were members; in violation of §18-8-306, C.R.S. (F-4), and against the peace and dignity of the

People of the State of Colorado.

COUNT 21


On or about May 2, 2017, in and triable in the State of Colorado, NICOLE SANDOVAL and

VICTORIA FERNANDEZ unlawfully and feloniously attempted to influence Colorado Springs

Police Department Sergeant Roger Vargason, who is a public servant, by means of deceit, with the

intent thereby to alter or affect the public servant’s decision, vote, opinion, or action concerning a

matter which was to be considered or performed by the public servant or the agency or body of which

the public servant was a member; in violation of §18-8-306, C.R.S. (F-4), and against the peace and

dignity of the People of the State of Colorado.

COUNT 22


On or about May 2, 2017, in and triable in the State of Colorado, ASHLEY HEFNER unlawfully

and feloniously attempted to influence Colorado Springs Police Department Detective Nick Bayne,

who is a public servant, by means of deceit, with the intent thereby to alter or affect the public

servant’s decision, vote, opinion, or action concerning a matter which was to be considered or

performed by the public servant or the agency or body of which the public servant was a member; in

violation of §18-8-306, C.R.S. (F-4), and against the peace and dignity of the People of the State of

Colorado.

15

COUNT 23

Special Offender – Conspiracy – Pattern of Sale, §18-18-407(1)(b), C.R.S. (DF-1) 33A43


DARA WHEATLEY committed the felony offenses charged in counts 4, 5 and 6;

ADAM DONALDSON committed the felony offenses charged in counts 4, 5 and 6;

which was, or was in furtherance of, a conspiracy with one or more persons to engage in a pattern of

manufacturing, sale, or distributing a controlled substance, and the defendant did, or agreed that

defendant would initiate, organize, plan, finance, direct, manage, or supervise part or all of the

conspiracy or manufacture, sale, or distributing, in violation of §18-18-407(1)(b), C.R.S. (DF-1), and

against the peace and dignity of the People of the State of Colorado.

COUNT 24

Special Offender – Organizer in Series of Violations with Others, §18-18-407(1)(F), C.R.S. (DF1)

33A48


JOSEPH HOPPER committed the felony offenses charged in counts counts 4, 5 and 6;

DARA WHEATLEY committed the felony offenses charged in counts 4, 5 and 6;

ADAM DONALDSON committed the felony offenses charged in counts counts 4, 5 and 6;

JOSEPH SERGIO CRIVICI committed the felony offenses charged in counts counts 4, 5 and 6;

engaged in a continuing criminal enterprise by violating §18-17-104(3), §18-17-104(4), §18-17-

104(2), §18-17-105, §18-18-406(2)(B)(I),(III)(A), namely: Violation of the Colorado Organized

Crime Control Act – Conspiracy/Endeavoring, Violation of the Colorado Organized Crime Control

Act – Pattern of Racketeering- Participation in Enterprise, Violation of the Colorado Organized

Crime Control Act – Pattern of Racketeering – Acquire Interest in Enterprise, Distribution Of

Marijuana (50 LBS) or Marijuana Concentrate (25 LBS), Possession with Intent to Manufacture or

Distribute Marijuana (50 LBS) or Marijuana Concentrate (25 LBS), Conspiracy to Distribute, or

Possess with Intent to Manufacture or Distribute, Marijuana – (50 LBS) or Marijuana Concentrate

(25LBS), and this violation was a part of a continuing series of two or more violations of part 4 of

article 18 of title 18, C.R.S., on separate occasions, namely: Distribution Of Marijuana (50 LBS) or

Marijuana Concentrate (25 LBS) in violation of §18-18-406(2)(B)(I),(III)(A), C.R.S. and any lesser

included offenses on two or more separate occasions on or about and between July 1, 2016 and May

25, 2017, Possession with Intent to Manufacture or Distribute Marijuana (50 LBS) or Marijuana

Concentrate (25 LBS), in violation of §18-18-406(2)(B)(I),(III)(A), C.R.S and any lesser included

offenses on two or more separate occasions on or about and between July 1, 2016 and May 25, 2017,

and Conspiracy to Distribute, or Possess with Intent to Manufacture or Distribute, Marijuana – (50

LBS) or Marijuana Concentrate (25LBS) in violation of §18-18-406(2)(B)(I),(III)(A), C.R.S. and any

lesser included offenses on two or more separate occasions on or about and between July 1, 2016 and

May 25, 2017, and the defendants undertook the continuing series of violations in concert with at

least five other persons with respect to whom the defendant occupied a position of organizer, or

supervisor, or other position of management, and the defendant obtained substantial income or

resources from the continuing series of violations; in violation of section 18-18-407(1)(f), C.R.S.

16

COUNT 25

Special Offender – Firearm, C.R.S. §18-18-407(1)(d)(II), C.R.S. (DF1) 33A45

On or about and between November 17, 2016 and May 25, 2017 in and triable in the State of

Colorado,

DERRICK BERNARD committed the felony offenses charged in counts 4, 5 and 6;

NATHAN BERNHEISEL committed the felony offenses charged in counts 4, 5, and 6;

and the defendant or a confederate of the defendant possessed a firearm to which: the defendant or

confederate had access in a manner that posed a risk to others; or in a vehicle the defendant was

occupying, during the commission of the offense; in violation of §18-18-407(1)(d)(II), C.R.S. (DF1),


COUNT 26

Filing a False Tax Return, §39-21-118(4), C.R.S. (F5) 40024

On or about and between April 1, 2017 and May 25, 2017, in and triable in the State of Colorado,

DARA WHEATLEY unlawfully, feloniously, and willfully made and subscribed returns, statements,

or other documents, which contained or were verified by a written declaration that they were made

under the penalties of perjury, and which the defendant did not believe to be true and correct as to

every material matter; in violation of §39-21-118(4), C.R.S. (F5), and against the peace and dignity of

the People of the State of Colorado.

COUNT 27


§39-21-118(1), C.R.S. (F5) 40021

On or about and between April 1, 2017 and May 25, 2017, in and triable in the State of Colorado,

DARA WHEATLEY, did unlawfully, feloniously and willfully attempt to evade and defeat a tax

administered by the Colorado Department of Revenue, or a payment thereof namely, Colorado

Income Tax in violation of §39-21-118(1), C.R.S. (F-5), and against the peace and dignity of the

People of the State of Colorado.

The offenses alleged in Counts 1 through 27 and the below Predicate Acts (connected to Counts 1, 2

& 3) incorporate any and all above asserted facts and dates. The below essential facts of the crimes

were committed in the following manner and occurred either entirely or partly in the State of

Colorado:

Starting in January of 2014, the State of Colorado enacted a marijuana excise tax. Retail marijuana

became subject to a 15% excise tax based on the average market price of retail marijuana. The tax is

calculated on the basis of the category of the retail marijuana product3 being sold or transferred.

Neither JOSEPH HOPPER, DARA WHEATLEY, ADAM DONALDSON, JOSEPH SERGIO

CRIVICI, HOPPZ’ CROPZ, LLC, DERRICK BERNARD, NATHAN BERNHEISEL, VICTORIA

FERNANDEZ, MARCEE SMITH, ALEJANDRA GONZALEZ, RAYLENE RUBIO, NICOLE

SANDOVAL, ASHLEY HEFNER, MELISSA COLMUS, nor any of their co-conspirators paid this

excise tax or filed any returns associated with the excise tax. The members of the enterprise were able

to increase profits by purchasing medical marijuana -which is taxed at a substantially lower rate

3 i.e., Flower, Trim, or Immature Plant.

17

compared to recreational- from licensed dispensaries by illegally using the patient “red cards” of

fellow co-conspirators. This effectively created a lower priced, black market marijuana sold by

Hoppz’ Cropz and its employees. Furthermore, none of the members of the enterprise paid or

collected and remitted the proper amount of sales tax due from the numerous retail sales made in the

Hoppz’ Cropz stores.

On July 29, 2016, Colorado Springs law enforcement agents assigned to the Metro Vice, Narcotics,

and Intelligence Division (“MVNI”) received anonymous information from a Crime Stopper tip

regarding the address 2549 Delta Drive (“Hoppz’ Delta”). The complaint stated Hoppz’ Delta

employees were selling marijuana to people without medical marijuana cards. MVNI detectives soon

learned employees at a second related store located at 2402 East Boulder Street (“Hoppz’ Boulder”)

conducted similar illegal distributions of marijuana.

A records check of Hoppz’ Cropz through the Colorado Secretary of State revealed the business

entity’s formation in July of 2016 and listed its registered agent as Dara Wheatley. Later, the

Secretary of State’s website listed Adam Donaldson as the registered agent beginning October, 2016,

ultimately followed by another change which listed Joseph Sergio Crivici as the registered agent as of

March, 2017. All parties provided their registered agent address as 750 East Cimarron Street.

Detectives soon became aware of Hoppz’ Cropz presence through social media and a television news

report featuring Dara Wheatley’s fiancée, Mr. Joseph Hopper. Eventually, the detectives learned that

Mr. Hopper self-identified as the stores’ owner in both social media and on a television interview

with KRDO News. After taking initial investigative steps and discovering social links between

numerous Hoppz’ Cropz owners and employees, MVNI detectives commenced an investigation

involving undercover operations.

Undercover Marijuana Purchases at Hoppz’ Delta:

On Thursday, August 18, 2016, Detective Michael Adam Hughes was assigned to act in an

undercover capacity to purchase marijuana from Hoppz’ Delta to help verify the validity of the Crime

Stopper tip. Detective Hughes entered the store and was asked for identification by an employee who

provided a typed form. Detective Hughes proceeded to fill out a typed form4 purporting to explain

Amendment 64 and the store’s sales model of gifting marijuana during a purchase. Hughes was told

he could purchase a “memo” (which appeared to be a rolling paper) for $5, a sticker ($10), or various

other items, and he would be gifted either a joint (a marijuana cigarette) or a gram or more of

marijuana (depending on how much he spent). He was also told he could smoke in the store if he

purchased a $3 gift. Detective Hughes opted to spend $15 and was given a lighter (which retails for as

low as 14 cents) and 1.35 grams of “Dark Horse”, a green, leafy substance which later tested positive

for Tetrahydrocannabinol (THC), the chemical ingredient in marijuana responsible for the ‘high’.

On Wednesday, November 9, 2016, Detective Joey Harris was assigned to act in an undercover

capacity to enter Hoppz’ Delta and attempt to purchase marijuana. Detective Harris entered the store

4 This form – and the others like it described throughout this document- was a contract uttered for the purpose of deceiving

the customers of Hoppz’ Cropz by providing false information as to the status of the marijuana the Hoppz’ Cropz customer

purchased in conjunction with various tangible items such as lighters, stickers, rolling papers and the like. All of the

members of the enterprise including JOSEPH HOPPER, DARA WHEATLEY, ADAM DONALDSON, JOSEPH SERGIO

CRIVICI, HOPPZ’ CROPZ, LLC (D.B.A. HOPPZ’ CROPZ, A.K.A MEMBER’S ONLY, HOPPY CROPZ, HOPPZ

CROPZ, HOPZ CROP), VICTORIA FERNANDEZ (A.K.A. “TORI”), MARCEE SMITH, ALEJANDRA GONZALEZ

(A.K.A. “ALE”), RAYLENE RUBIO, NICOLE SANDOVAL, ASHLEY HEFNER, MELISSA COLMUS, conspired and

or stood complicit in completing or uttering these forgeries as it advanced the enterprise as a whole and each member

eventually profited personally. A larger list of customers defrauded by the employees and owner managers is listed below at

“ATTACHMENT A”

18

and was greeted by Hoppz’ Cropz owner/employee Dara Wheatley who asked him if he had his

identification card with him. Ms. Wheatley instructed Detective Harris to complete one of forms

stating he understood Amendment 64, is over 21 years of age, and is becoming a member of Hoppz’

Cropz (at both locations). Once Wheatley took possession of the form she told Detective Harris he

could be “gifted” marijuana in exchange for purchasing a small item, such as a rolling paper or

lighter. After being shown some marijuana products, Detective Harris purchased a (14 cent) lighter

for $15 and was “gifted” 1.03g of a green, leafy substance labelled ‘Kandy Kush.’ This so called gift

field tested positive for THC.

On Friday, November 11, 2016, Detective Chace Passanante was assigned to act in an undercover

capacity to enter Hoppz’ Delta in attempts to purchase marijuana. At 1508 hours on that date,

Detective Passanante entered the store and was greeted by Hoppz’ Cropz employee Melissa Colmus.

The employee asked the detective to complete the form stating he understood Amendment 64, was

over 21, and he was joining Hoppz’ Cropz as a member. Colmus then told Detective Passanante they

do not sell marijuana, they “gift” it with a purchase of another item. She showed Detective Passanante

three shelves containing different marijuana products (buds, extract, etc.). Melissa Colmus told him

he could buy a “paper” for $10 and she would “gift” him a gram of marijuana, a lighter for $15 with a

gram, or a small pipe for $20 with a gram of marijuana. Colmus said, “That shows you the level of

shelves we have, but we do gift up to 14 grams.” Detective Passanante bought a (14 cent) lighter for

$15 and a baggie weighing 2.94 grams (including the baggie), containing a green, leafy substance

which field tested positive for THC.

Undercover Marijuana Purchases at Hoppz’ Boulder:

On Wednesday, November 9, 2016, Detective J. Harris entered Hoppz’ Boulder and attempted to

purchase marijuana. At approximately 1411 hours on that date, Hoppz’ Cropz employee Raylene

Rubio greeted Detective Harris as he entered the store. Rubio asked him if he had been to the store

before. Raylene Rubio next asked Detective Harris to complete one of the forms stating he

understood Amendment 64, he is over 21 years of age, and he is becoming a member of Hoppz’

Cropz. When he had completed the form, the employee, Raylene Rubio, went on to say, “We are

more like a gift shop rather than a dispensary, so we gift weed we do not sell it.” Rubio showed

Detective Harris some marijuana and told he could purchase a lighter or a small, glass pipe and be

gifted some marijuana. She also told him the detective he could buy a $5 “memo” (which appeared to

be a small baggie of marijuana) or he could buy a sticker. Raylene Rubio then told him she was out of

stickers so she could give him a rolling paper, or, she stated, “You are purchasing the bag and I am

gifting you a memo.” Detective Harris purchased a small glass pipe for $20 and was “gifted” 0.97

grams of ‘Gorilla Glue’, a green, leafy substance which field tested positive for THC.

On Friday, November 11, 2016, Detective C. Passanante visited Hoppz’ Boulder to try to purchase

marijuana. At 1540 hours, Detective Passanante entered the store and Hoppz’ Cropz employee

Marcee Smith asked the undercover detective to complete the form stating he understood Amendment

64, was over 21, and that he was joining Hoppz’ Cropz as a member. Marcee Smith told Detective

Passanante the marijuana would be “gifted” with another purchase. She showed Detective Passanante

three shelves of marijuana products with different THC levels. Detective Passanante selected the

“Jelly Bean” variety of marijuana and Marcee Smith then asked if he wanted to do a $15 small pipe.

Detective Passanante purchased a pipe and received a baggie weighing 3.15 grams (including the

baggie), holding a green, leafy substance which tested positive for THC.

19

First Search Warrant

On November 16, 2016, Detective Kerry Linfoot completed a search warrant for both Hoppz’ Cropz

locations. The search warrants were reviewed and signed by Judge Walter on November 16, 2016, and

executed on November 17, 2016. During the searches of the Hoppz’ Cropz stores, detectives seized

approximately 2198 grams of marijuana and marijuana products, along with a handgun and $3290 in

U.S. currency. Ledgers at the store put the daily sales for the Boulder store at $700-$1500 and the daily

sales at the Delta store from $2000-$3500.

During the execution of these warrants, receipts and financial documentation obtained by law

enforcement officials indicated several sources for the marijuana sold in the Hoppz’ Cropz stores were

medical marijuana dispensaries. Receipts showed quantities of marijuana and marijuana concentrate

being purchased from, among other stores, Altitude Organic Medicine. Some of the receipts recovered

specifically indicated Adam Donaldson was purchasing medical marijuana from Altitude Organic

Medicine for later illegal resale at the Hoppz’ Cropz stores.

Close in time to the execution of the November 16, 2016 search warrants, Raylene Rubio attempted

to influence Colorado Springs Police Department Detective Nick Bayne, by means of deceit and with

the intent thereby to alter or affect the detective’s decision, vote, opinion, or action concerning his

investigation into the Hoppz’ Cropz drug distribution conspiracy. When asked by the detective – who

had identified himself as law enforcement - Ms. Rubio stated that she was a volunteer working at the

Hoppz’ Cropz store, when in fact she was a paid employee working “under the table” to help the

business avoid paying wage withholding taxes to the Colorado Department of Revenue.

Further Investigation

On December 8, 2016, undercover MVNI detectives conducted buys at both Hoppz’ Cropz locations.

Undercover MVNI detectives successfully purchased marijuana from both stores under what the

employees, including both Marcee Smith and Raylene Rubio, referred to as a “reimbursement process.”

The detectives were advised they were joining the Hoppz’ Cropz club and they were permitting Hoppz’

Cropz to grow their six plants which are permitted under Amendment 64. They were told they were

paying to reimburse Hoppz’ Cropz for the time, labor, and resources used to grow their plants. The

marijuana products purchased at both stores later field tested positive for the presence of THC.

On the morning of Friday, April 7, 2017, detectives from MVNI noticed Joseph Sergio Crivici’s

vehicle parked outside the home of Hopper. Crivici and Donaldson left the residence and entered a

silver Lincoln carrying backpacks. The men drove to Hoppz’ Boulder where they remained for just

over one hour. Both Crivici and Donaldson then left the Boulder store and drove to Hoppz’ Delta.

When they arrived, both men went into the store and remained while several customers came and

went.

Later that same morning, Crivici and Donaldson left the Delta store and travelled to 2354 E. Platte

Avenue, a medical marijuana dispensary called Altitude Organic Medicine. The reader should note

that receipts from this store were found during the search warrants previously executed on the Hoppz’

Cropz stores. Altitude Organic Medicine appeared to be a source of supply where employees and or

supervisor level employees, such as Crivici and Donaldson, purchased marijuana for resale at the

Hoppz’ Cropz stores.

20

Tax Evasion

As MVNI detectives continued their investigation it became increasingly clear from the undercover

buys, information retrieved during search warrants, and data from electronics retrieved during the

search, that Hoppz’ Cropz, LLC, and its owner managers Joseph Hopper, Adam Donaldson, Dara

Wheatley or Joseph Sergio Crivici paid little to no state or local taxes on retail sales.5 Accordingly,

MVNI detectives reached out to and began working with special agents6 from the Colorado

Department of Revenue (CDOR).

CDOR records indicated Dara Wheatley applied for a sales tax license in July of 2016 using the

Colorado Business Express portal and received a sales tax license for Hoppz’ Cropz. The application

stated Hoppz’ Cropz would be conducting retail sales and specifically listed products being sold as

suckers, papers, memos, playing cards, bongs, pipes rigs, sports memorabilia and bottled water. At

the time of the application, Wheatley estimated monthly sales at $15/month or less, which would have

made the business an annual filer. The business should have filed a sales tax return on January 20,

2017 for sales in 2016. If no sales had occurred in 2016 the business should have filed a zero dollar

return on January 20, 2017. However, Hoppz’ Cropz never filed a return showing either “sales” or

“no sales” as required.

Even though Hoppz’ Cropz and its coconspirator owners, managers and employees conducted

significant retail sales, Dara Wheatley closed the sales tax account on February 6, 2017. Due to the

business having failed to file any returns, including a zero amount return, the CDOR sent a non-filer

notice on March 8, 2017. On March 17, 2017 a “Notice of Deficiency” was sent to the business

based on the CDOR generating an estimated return. Despite the warning inherent in these notices and

Wheatley’s earlier registration for a sales tax license, no payments or amended returns have been filed

by either managers, owners or employees of Hoppz’ Cropz. As the MVNI detectives coordinated

their investigation with CDOR special agents the questioning of Hoppz’ Cropz employees shifted

subtly and they began inquiring into tax liabilities during undercover operations.

On Friday, April 14, 2017, undercover Detective Michael Hughes again made purchases of marijuana

at both Hoppz’ Cropz stores. At Hoppz’ Boulder, Detective Hughes again contacted Ms. Marcee

Smith, and explained that he had not been to the store before. Ms. Smith asked for Detective Hughes’

ID and photocopied it. She next brought out a single sheet of paper with typed information on it

stating that he the customer was over the age of 21 and understood Amendment 64. She then said

Detective Hughes was a now a member of Hoppz’ Cropz and he was asked to sign the form. Hoppz’

Cropz employee Marcee Smith explained a “reimbursement” process through which the customer

reimburses the store for the electricity, nutrients, and “everything that actually goes into the growth of

the plants.” When the detective handed the Hoppz’ employee two $20 bills to pay for a $40 purchase,

he asked her, “No taxes on that?” The employee laughed and responded, “No taxes.” The detective

purchased marijuana with an approximate weight of 1.66 grams and suspected marijuana concentrate

with an approximate weight of 1.4 grams.

5 A person or business having a permanent location where retail sales are conducted on a regular basis must obtain a

standard sales tax license. The filing frequency is determined by the amount of sales tax collected monthly. The following

are the required filing frequencies based on monthly sales for the State of Colorado as published on the Colorado

Department of Revenue website: $15 or less per month: sales tax returns may be filed annually; Under $300 per month:

sales tax returns may be filed quarterly; $300 or more per month: sales tax returns must be filed monthly; Businesses that

pay more than $75,000 per year in state sales tax must pay by Electronic Funds Transfer. Sales tax returns are to be filed

based on the reporting requirement. Annual sales tax filers must file on January 20th of the year preceding the reporting

year. Quarterly sales tax filers must file on the 20th day of the month following the reporting quarter. Monthly sales tax

filers must file on the 20th of the month following the reporting month. If the due date falls on a weekend or holiday then

the return is due the next business day. If there are no taxable sales during a filing period, a zero return must be filed.

Failure to file will result in a non-filer notice being sent, which will be filed by an estimated bill. 6 CDOR special agents possess access to a database of sales tax returns submitted by individuals and organizations to the

CDOR itself.

21

At the Delta store on this date, the undercover detective again made a purchase of marijuana. When

he gave Hoppz’ Cropz employee Raylene Rubio the cash to pay for this purchase, the detective

remarked that he did not like paying taxes for marijuana. The employee replied, “No taxes.” The

detective purchased marijuana with a total approximate weight of 3.2 grams, called “Gilz Nilz.”

Second Search Warrant

On May 2, 2017, Detective Kerry Linfoot once again completed a search warrant for both Hoppz’

Cropz locations and the residence of Donaldson and Crivici. The search warrants were reviewed and

signed by Judge Wilson, on May 2, 2017, and executed on May 2, 2017. During the searches of the

Hoppz’ Cropz stores and the residence, detectives seized approximately 10,652.43 grams of

marijuana and marijuana products, along with a shotgun, 26 marijuana-infused vape cartridges, 0.6

grams of methamphetamines, and $8,132.00 in U.S. currency. Daily totals from register receipts

found at the three locations put the daily proceeds for the Boulder and Delta stores combined at

$82,549 for 2017. Additionally, a cumulative total for sales taken from a single daily receipt dated

April 30, 2017, indicated the total amount of sales at $417,265. On some daily receipts for 2017 there

is a tax category on the receipt, which reflects $4,865 in tax was collected at the retail stores but not

remitted.

The receipt books seized during the second search warrant had purchase receipts written for shake

and edibles in the amount of $2,675 and approximately $1,051 dollars in raw cones, silicone dabbers,

and similar items. Further, the receipt books showed $6,136 dollars had been paid to employees in

2017. The $6,136 does not include receipts written to employees when a date was not noted.

During the execution of these warrants, receipts and financial documentation obtained by law

enforcement officials indicated several sources for the marijuana sold in the Hoppz’ Cropz stores

were medical marijuana dispensaries. Receipts showed quantities of marijuana and marijuana

concentrate being purchased from, among other stores, Altitude Organic Medicine. Some of the

receipts recovered continued to indicate Adam Donaldson purchased medical marijuana from Altitude

Organic Medicine. Close in time to the execution of the May 2, 2017 search warrants, detectives

interviewed a co-owner and several employees of the Hoppz’ Cropz stores.

On or about May 2, 2017, Joseph Sergio Crivici, in his capacity as owner and high managerial agent

of Hoppz’ Cropz, attempted to influence Colorado Springs Police Department Detective Nick Bayne,

by means of deceit and with the intent thereby to alter or affect the detective’s decision, vote, opinion,

or action concerning his investigation into the Hoppz’ Cropz drug distribution conspiracy. When

questioned by the detective – who had identified himself as law enforcement - Mr. Crivici stated that

he was a new owner at the Hoppz’ Cropz store who had only been working at and only owned the

store for a few days, when in fact he had been working at the store and a part owner for several

months. Indeed, Mr. Crvici told another law enforcement officer that he had only been an owner of

the store for six weeks.

On or about May 2, 2017, Nicole Sandoval and Victoria Fernandez both attempted to influence

Colorado Springs Police Department Sergeant Roger Vargason, by means of deceit and with the

intent thereby to alter or affect the detective’s decision, vote, opinion, or action concerning his

investigation into the Hoppz’ Cropz drug distribution conspiracy. When questioned by Vargason –

who had identified himself as law enforcement - Both Ms. Sandoval and Ms. Fernandez explained

that they were volunteers working at the Hoppz’ Cropz store, when in fact they were each paid

employees working “under the table” to help the business avoid paying wage withholding taxes to the

Colorado Department of Revenue.

22

On or about May 2, 2017, Ashley Hefner attempted to influence Colorado Springs Police Department

Detective Nick Bayne, by means of deceit and with the intent thereby to alter or affect the detective’s

decision, vote, opinion, or action concerning his investigation into the Hoppz’ Cropz drug distribution

conspiracy. When questioned by the Detective Bayne – who had identified himself as law

enforcement - Ms. Hefner stated that she was a volunteer working at the Hoppz’ Cropz store, when

in fact she was a paid employee working “under the table” to help the business avoid paying wage

withholding taxes to the Colorado Department of Revenue.

After executing the search warrants, the detectives viewed security footage from the stores showing

many instances of unlawful distribution of marijuana by the employees of and an owner of Hoppz’

Cropz. Just a handful of these illegal distributions include but are not limited to the sales by the

below listed individuals at the times, dates and locations listed in the chart immediately below:

Name Date of Sale 1 Date of Sale 2 Date of Sale 3 Date of Sale 4 Date of Sale 5

Alejandra

Gonzalez

4/30/17 - 1630 hrs.

(Delta - Sec. Cam)

4/30/17 - 1648 hrs.

(Delta - Sec. Cam)

4/30/17 - 1650 hrs.

(Delta - Sec. Cam)

4/30/17 - 1653 hrs.

(Delta - Sec. Cam)

5/17/17 1649 hrs.

(Delta - UC)

Ashley

Hefner

5/2/17 - 1138 hrs.

(Boulder - Sec. Cam)

5/2/17 - 1147 hrs.

(Boulder - Sec.

Cam)

5/2/17 - 1155 hrs.


5/2/17 - 1203 hrs.


5/2/17 - 1208 hrs.


Victoria

Fernandez

4/29/17 - 1120 hrs.

(Delta - Sec. Cam)

4/29/17 - 1141 hrs.

(Delta - Sec. Cam)

4/29/17 - 1143 hrs.

(Delta - Sec. Cam)

4/29/17 - 1154 hrs.

(Delta - Sec. Cam)

4/29/17 - 1208 hrs.

(Delta - Sec. Cam)

Nicole

Sandoval

4/30/17 - 1650 hrs.

(Delta - Sec. Cam)

4/30/17 - 1652 hrs.

(Delta - Sec. Cam)

4/30/17 - 1656 hrs.

(Delta - Sec. Cam)

4/30/17 - 1700 hrs.

(Delta - Sec. Cam)

4/30/17 - 1718 hrs.

(Delta - Sec. Cam)

Melissa

Colmus

11/11/16 1510 hrs.

(Delta - UC)

11/16/16 - 2115 hrs.

(Delta - Sec. Cam)

11/16/16 - 2118 hrs.

(Delta - Sec. Cam)

11/16/16 - 2121 hrs.

(Delta - Sec. Cam)

11/16/16 - 2122 hrs.

(Delta - Sec. Cam)

Raylene

Rubio

11/9/16 - 1446 hrs.

(Boulder - UC)

11/16/16 - 1530 hrs.

(Boulder - Sec.

Cam)

11/16/16 - 1533 hrs.


11/9/16 - 1537 hrs.

(Boulder - UC)

12/8/16 1632 hrs.

(Delta - UC)

Marcee

Smith

11/11/16 1540 hrs.

(Boulder - UC)

11/16/16 1910 hrs.

(Boulder - Sec.

Cam)

11/16/16 1920 hrs.


12/8/16 1715 hrs.

(Boulder - UC)

5/17/17 1629 hrs.

(Boulder - UC)

Dara

Wheatley

11/15/16 1037 hrs.

(Delta - Sec. Cam)

11/15/16 1040 hrs.

(Delta - Sec. Cam)

11/15/16 1044 hrs.

(Delta - Sec. Cam)

11/15/16 1046 hrs.

(Delta - Sec. Cam)

11/15/16 1055 hrs.

(Delta - Sec. Cam)

Money Laundering Activity by Members of the Enterprise

Financial investigators examined banking transactions of certain members of the Hoppz’ Cropz

enterprise. The investigators discovered that from July of 2016 until the present day Dara Wheatley

and Adam Donaldson engaged in various money laundering transactions with the apparent proceeds

derived from the illegal distribution of marijuana at the Hoppz’ Cropz stores. The other members of

the enterprise including JOSEPH HOPPER, JOSEPH SERGIO CRIVICI, HOPPZ’ CROPZ, LLC,

DERRICK BERNARD, NATHAN BERNHEISEL, VICTORIA FERNANDEZ, MARCEE SMITH,

ALEJANDRA GONZALEZ, RAYLENE RUBIO, NICOLE SANDOVAL, ASHLEY HEFNER,

MELISSA COLMUS, conspired and or stood complicit in this money laundering behavior as it

advanced the enterprise as a whole and each member profited personally from their co-conspirators’

money laundering behavior.

23

An example of this behavior includes, but is not limited to, multiple financial transactions involving

United States currency. These are known to be transfers of money by members of the enterprise, and

Dara Wheatley and Adam Donaldson in particular, made with the intent to promote the commission

of the criminal offense including, but not limited to, the illegal distribution of marijuana and

marijuana concentrate. Specifically, Ms. Wheatley and Mr. Donaldson transferred or transmitted

moneys and proceeds of illegal distributions to pay bills and to keep utility services active for the

Hoppz’ Cropz business locations. Moreover, Ms. Wheatley and Mr. Donaldson transmitted or

transferred moneys, including some proceeds of illegal distributions, to purchase supplies for future

sales and pay advertising costs for the commission of future illegal activity, including the illegal

distribution of marijuana and marijuana concentrate.

Adam Donaldson – Pueblo Bank and Trust, Account # XXXXX9943

Between July of 2016 and the present, as demonstrated below with specific examples, Mr. Donaldson

transferred proceeds of the illegal marijuana distribution or by:

a) Making payments to ADT, Colorado Springs Utilities and Springs Waste Systems. Bills

addressed to the store show utility payments being made for security monitoring, electrical

and waste removal. These services help the business to run by keeping the power on,

removing waste from the stores, and keeping the stores secure;

b) Making payments/purchases to CA Wholesale, Oriental Imports and East Grow Warehouse

for supplies for the store, such as marijuana paraphernalia and t-shirts. These purchases aid in

keeping the business operating and assists in advertising to obtain future revenue;

c) Making a payment to the landlord of the Hoppz’ Cropz location on Boulder Street, thereby

keeping the doors open to enable the DTO to do business;

d) Making purchases to Adobe Creative Cloud and Vista Print for the purpose of website and

business card advertising. This assists in advertising for the business to increase visibility and

customer base for continued and future sales;

e) Making purchases from Modern Medicine, a marijuana dispensary in Colorado Springs,

Colorado, for the “gifted” marijuana given as the free gift with purchase.

Cash In / Cash Out

Analysis of Mr. Donaldson’s account also revealed that, between July 18, 2016, and February 18,

2017, Mr. Donaldson made forty six cash deposits totaling $62,130.00. These were all cash and not

deposited by a known employer in the form of payroll, nor could these be tied to a legitimate source.

There are several cash withdrawals from Mr. Donaldson’s account between July 18, 2016, and

September 28, 2016, totaling $21,709.54. Since there appears to be no other legitimate source of

income for Mr. Donaldson, in looking at both his bank account and Federal Wage/Income Transcripts

(i.e.W-2 and 1099 information) for income, it would appear that his money is coming from the

Hoppz’ Cropz stores, at which he occupies a high level managerial role and/or an ownership tie to the

company.

In a period of time between July, 2016, and May, 2017, Donaldson –by way of his red card- was

identified as having purchased $20,210.70 of medical marijuana at Altitude Organic Medicine,

LivWell, and Pain Management Solutions. This marijuana was resold through Hoppz’ Cropz.

24

Finally, statements from the landlords for 750 E. Cimarron, the address at which Mr. Donaldson

resides, indicate that rent payments were made in cash. This may account for some of the cash

withdrawals made by Mr. Donaldson.

Dara Wheatley – JPMorgan Chase, Account # XXXXX0335

As demonstrated below with specific examples, between July of 2016 and the present, Ms. Wheatley

shows behaviors of transmitting or transferring proceeds and/or other money by:

a) Making payments to Colorado Springs Utilities and Springs Waste Systems for bills

addressed to and of the store. These records show utility payments being made for electrical

and waste removal, which helps enable the business to run by keeping the power on,

removing waste from the stores;

b) Making a payment to the Colorado Secretary of State’s Office to register Hoppz’ Cropz, LLC

as a Colorado business;

c) Making payments/purchases Oriental Imports and West Grow Warehouse for supplies for the

store, such as marijuana paraphernalia and t-shirts. These purchases aid in keeping the

business operating and assist in advertising to acquire future business and revenue;

d) Making purchases to Vista Print for the purpose of advertising. This assists in advertising for

the business to increase visibility and the customer base;

e) Making payments to Comcast for service at the stores.

Cash In / Cash Out

Analysis of Ms. Wheatley’s account also revealed that, between January 7, 2016 and March 21, 2017,

Ms. Wheatley made ninety six cash deposits (including ATM and transfers) totaling $68,087.27.

These were all cash or transfer and not deposited by a known employer in the form of payroll nor

could these be tied to a legitimate source. $18.980.92 was in the form of electronic transfer from the

following: Joseph Hopper with fourteen transfers totaling $10,255.92; “Alejandro Gonzalez”

Eleven cash withdrawals between 7/18/16 and 9/28/16 totaling $21,709.54

Monthly payments to Adobe Creative Cloud, a business software expert company, for $19.99

between 8/26/16 and 01/26/17

Two payments to ADT Security: 8/12/16 for $603.00 and 8/22/16 for $103.49

One payment to Bonicelli-Hinton LLC (Hoppz’ Landlord Boulder Location) for $4605.00

One payment to CA Wholesale on 9/13/16 for $165.00

One payment to Colorado Springs Utilities on 9/25/16 for $914.84

Four payments to East Grow Warehouse (2 in August 2016 and 2 in September, 2016) totaling

$300.67

Eighteen total payments to Modern Medicine (d/b/a Altitude Organic Medicine) between

8/16/16 and 11/3/16 totaling $3,627.11

One payment to Oriental Imports on 9/26/16 for $3,214.20

One payment to Purple Mountain Hydro on 9/22/16 for $45.95

One payment to Springs Waste Systems on 8/9/16 for $62.00

Nine payments to Vista Print between 7/22/16 and 12/8/16 totaling $395.93

25

(believed to actually be Alejandra Gonzalez) with four transfers totaling $625.00; one transfer from

Joseph Crivici totaling $1,100.00 and seven transfers from an unidentified party totaling $7,000.00.

There are several cash withdrawals from Ms. Wheatley’s account, including ATM and transfers,

between January 4, 2014 and December 10, 2016 totaling $18,140.49. $4,390.00 was in the form of

electronic transfer to the following: “My Love” (presumably her fiancée Joseph Hopper) with six

transfers totaling $3,030.00; one transfer to “Vegas Joe” (presumably Joseph Crivici, as he had

previously resided in Las Vegas) for $1,050.00; and two transfers to “Poppo/PDppo” (presumably

Adam Donaldson (A.K.A. “Popz”)) for $310.00. There appears to be no other legitimate source of

income for Ms. Wheatley, other than approximately $2,367.00. In looking at both her bank account

(which showed only $262.71 deposited) and the 2016 income tax return she filed in Colorado, it

appears that the vast majority of her money came from the Hoppz’ Cropz stores revenue, in which she

occupies a high level managerial and/or ownership position.

The landlords for 750 E. Cimarron, Ms. Wheatley’s residence, indicate that rent payments were made

in cash which may account for some of the cash withdrawals made by Ms. Wheatley.

Thirty two cash withdrawals between 1/4/16 and 12/12/16 totaling $18,140.49

One payment to the Colorado Secretary of State for $50.00

Nine payments to Comcast between 11/2/16 and 2/3//17 totaling $2,543.29

Seventeen payments to Colorado Springs Utilities between 1/8/16 and 3/2/17

totaling $6,478.63

Three payments to West Grow Warehouse on 2/22/16, 6/9/16 and 6/20/16 totaling

$128.29

One payment to Oriental Imports on 1/3/17 for $364.20

Nine payments to Century Link between 3/2/16 and 1/8/17 totaling $823.51

Seven payments to Springs Waste Systems between 2/16/16 and 1/25/17 totaling

$541.25

One payment to Vista Print on 10/26/16 for $147.99

On numerous occasions, as described in greater detail in the below Predicate Acts, specific members

of the enterprise unlawfully used their cell phones’ text messaging or email via social media

platforms –such as Face Book- to facilitate distribution of marijuana or the conspiracy to distribute a

marijuana from the stores.

PREDICATE ACT 1

Unlawful Use of a Communication Facility, 21 U.S.C. §843

On or about March 29, 2017, at 10:38:48 a.m. (UTC-6) in and triable in the State of Colorado, Nicole

Sandoval and a person known to the Grand Jury did knowingly or intentionally use a

communications facility, namely, a wire, telephone and/or other means of communication, to

facilitate the commission of a felony, namely, distribution of a controlled substance, possession with

the intent to distribute a controlled substance and/or conspiracy to distribute a controlled substance in

violation of 21 U.S.C. §§841 and 846, such use of a commmunications facility being unlawful, and in

violation of 21 U.S.C. §843.

26

PREDICATE ACT 2


On or about April 19, 2017, at 4:04:10 p.m. (UTC-6) in and triable in the State of Colorado, Nicole

Sandoval did knowingly or intentionally use a communications facility, namely, a wire, telephone

and/or other means of communication, to facilitate the commission of a felony, namely, distribution

of a controlled substance, possession with the intent to distribute a controlled substance and/or

conspiracy to distribute a controlled substance in violation of 21 U.S.C. §§841 and 846, such use of a

commmunications facility being unlawful, and in violation of 21 U.S.C. §843.

PREDICATE ACT 3


On or about April 20, 2017, at 12:16:41 p.m. (UTC-6) in and triable in the State of Colorado, Nicole






PREDICATE ACT 4


On or about April 23, 2017, at 11:12:25 a.m. (UTC-6) in and triable in the State of Colorado, Nicole






PREDICATE ACT 5


On or about May 2, 2017, at 10:09:14 a.m. (UTC-6) in and triable in the State of Colorado, Nicole






PREDICATE ACT 6


On or about October 25, 2016, at 2:34:37 p.m. (UTC-7) in and triable in the State of Colorado,

Nathan Bernheisel did knowingly or intentionally use a communications facility, namely, a wire,

telephone and/or other means of communication, to facilitate the commission of a felony, namely,

27

distribution of a controlled substance, possession with the intent to distribute a controlled substance

and/or conspiracy to distribute a controlled substance in violation of 21 U.S.C. §§841 and 846, such

use of a commmunications facility being unlawful, and in violation of 21 U.S.C. §843.

PREDICATE ACT 7


On or about November 6, 2016, at 1:59:17 p.m. (UTC-7) in and triable in the State of Colorado,

Nathan Bernheisel and Adam Donaldson did knowingly or intentionally use a communications

facility, namely, a wire, telephone and/or other means of communication, to facilitate the commission

of a felony, namely, distribution of a controlled substance, possession with the intent to distribute a

controlled substance and/or conspiracy to distribute a controlled substance in violation of 21 U.S.C.

§§841 and 846, such use of a commmunications facility being unlawful, and in violation of 21 U.S.C.

§843.

PREDICATE ACT 8



Nathan Bernheisel and Dara Wheatley did knowingly or intentionally use a communications





§843.

PREDICATE ACT 9



Nathan Bernheisel did knowingly or intentionally use a communications facility, namely, a wire,





PREDICATE ACT 10



Nathan Bernheisel and Adam Donaldson did knowingly or intentionally use a communications





§843.

28

PREDICATE ACT 11


On or about April 29, 2017, at 9:05 p.m in and triable in the State of Colorado, Raylene Rubio,

Victoria Fernandez, Marcee Smith, Alejandra Gonzalez and Nicole Sandoval did knowingly or

intentionally use a communications facility, namely, a wire, telephone and/or other means of

communication, to facilitate the commission of a felony, namely, distribution of a controlled

substance, possession with the intent to distribute a controlled substance and/or conspiracy to

distribute a controlled substance in violation of 21 U.S.C. §§841 and 846, such use of a


PREDICATE ACT 12


On or about May 2, 2017, at 9:05 p.m in and triable in the State of Colorado, Raylene Rubio and

Victoria Fernandez did knowingly or intentionally use a communications facility, namely, a wire,





PREDICATE ACT 13


On or about July 8, 2016, at 4:22:51 p.m (UTC-6) in and triable in the State of Colorado, Victoria

Fernandez did knowingly or intentionally use a communications facility, namely, a wire, telephone





On or about March 29, 2017, at the times listed below, Nicole Sandoval and a party unknown to

the Grand Jury took part in the below text message conversation with one another in order to

facilitate the felony distribution of a controlled substance, possession with the intent to distribute a

controlled substance and/or conspiracy to distribute a controlled substance. The entire text

conversation has been included for context.

32

On or about April 19, 2017, at the times listed below, Nicole Sandoval and a party unknown to the

Grand Jury took part in the below text message conversation with one another in order to facilitate

the felony distribution of a controlled substance, possession with the intent to distribute a controlled

substance and/or conspiracy to distribute a controlled substance. The entire text conversation has

been included for context.

33

On or about April 20, 2017, at the time listed below, Nicole Sandoval and a party unknown to the



substance and/or conspiracy to distribute a controlled substance.

34

On or about April 23, 2017, at the time listed below, Nicole Sandoval and a party unknown to the



substance and/or conspiracy to distribute a controlled substance.

On or about May 2, 2017, at the time listed below, Nicole Sandoval and Chase Andrisko took part

in the below text message conversation with one another in order to facilitate the felony distribution


conspiracy to distribute a controlled substance.

35

Between on or about October 25, 2016, and November 4, 2016, at the times listed below, Nathan

Bernheisel and a party unknown to the Grand Jury took part in the below Facebook message

exchange in order to facilitate the felony distribution of a controlled substance, possession with the

intent to distribute a controlled substance and/or conspiracy to distribute a controlled substance. The

entire Facebook message conversation has been included for context.

36

Between on or about November 6, 2016, and November 16, 2016, at the times listed below, Nathan

Bernheisel and a party unknown to the Grand Jury took part in the below Facebook message

exchange in order to facilitate the felony distribution of a controlled substance, possession with the

intent to distribute a controlled substance and/or conspiracy to distribute a controlled substance. The

entire Facebook message conversation has been included for context.

38

On or about November 16, 2016, at the times listed below, Nathan Bernheisel and Dara Wheatley

took part in the below text message conversation with one another in order to facilitate the felony


and/or conspiracy to distribute a controlled substance.

39

On or about November 17, 2016, at the time listed below, Nathan Bernheisel sent the following text

message to Adam Donaldson in order to facilitate the felony distribution of a controlled substance,

possession with the intent to distribute a controlled substance and/or conspiracy to distribute a

controlled substance. This message references an incident when Derrick Bernard and Nathan

Bernheisel were sleeping at Hoppz’ Boulder and Bernard confronted some people outside the store

with a firearm.

On or about November 17, 2016, at the times listed below, Nathan Bernheisel and Adam

Donaldson took part in the below text message conversation with one another (referring to another

employee, Raylene Rubio) in order to facilitate the felony distribution of a controlled substance,


controlled substance. The entire text conversation has been included for context.

40

On or about April 29, 2017, at the times listed below, Raylene Rubio, Victoria Fernandez, Marcee

Smith, Alejandra Gonzalez, Nicole Sandoval, and parties unknown to the Grand Jury took part

in the below text message conversation with one another in order to facilitate the felony distribution


conspiracy to distribute a controlled substance. The entire text conversation has been included for

context.

42

On or about May 2, 2017, at the times listed below, Raylene Rubio and Victoria Fernandez took

part in the below text message conversation with one another in order to facilitate the felony


and/or conspiracy to distribute a controlled substance. The entire text conversation has been included

for context.

43

Between on or about July 8, 2016, and October 3, 2016, at the times listed below, Victoria

Fernandez and a party unknown to the Grand Jury took part in the below conversation via

Twitter with one another in order to facilitate the felony distribution of a controlled substance,


controlled substance. The entire Twitter conversation has been included for context.

44

Dara Wheatley’s Income Tax Evasion and Filing of a False Return

The CDOR maintains a database of income tax returns submitted by individuals and organizations.

During May of 2017, an examination was performed for records contained in the CDOR database for

Dara Wheatley who had filed Colorado individual income tax returns for 2016 on or about April 18,

2017. CDOR records indicate that Wheatley had not previously filed income tax in the State of

Colorado. Included in the CDOR data base is the Federal income tax filing, including: a schedule C,

Schedule SE, and W-2 forms. The schedule C is the profit and loss from a business and is used when

the profit or loss of said business is to flow through to the individual. Wheatley’s Schedule C forms

included with her return stated the business to be Hoppz’ Cropz LLC. The CDOR has access to

certain federal information. During May of 2017, a request of Wheatley’s Federal Income tax returns

was submitted to the Internal Revenue Service (IRS) including transcripts for tax year 2016 with a

request for the certified returns (not yet received).

Wheatley’s 2016 Federal income tax return was recalculated based on the best information available,

with Wheatley as the sole member of Hoppz’ Cropz LLC. This resulted in re-calculating the Profit or

Loss from a Business on Schedule C and Self-Employment Tax on Schedule SE on the Federal

income tax return.

The recalculation was based on the Gross Receipts reported of $36,452 being under reported. The

assertion that the gross receipts were under reported is due to the information contained in a

ledger/journal during a search warrant executed in November of 2016 that listed daily sales totals

from July 15, 2016 through November 4, 2016. The ledger/journal entries for daily sales totaled

$410,608.

As the gross receipts were adjusted to reflect the amounts in the ledger/journal the expenses and cost

of goods were also adjusted reflecting higher amounts to offset the higher gross receipts.

45

Expense credits were re-calculated on the Schedule C. Credits for the amounts reported were

combined with additional amounts in categories of rent, wages, supplies, phone, taxes and fees.

Additional advertising credit was given and credit was given for items appearing to be business

expenses found in a receipt book during search warrants executed in November 2016 and May 2017.

Total business expenses were determined to be $90,955.67.

Category Estimate Amount

Rent $14,700

Payroll 17,387

Receipt Book 28,092

Taxes/Fees 2,149

Per Schedule C

filed 19,798

Utilities 7,019.88

Advertising 897.99

Telephone 823.51

Supplies

128.29

Total $ 90,995.67

The cost of goods was recalculated using the total combined marijuana purchases of three individuals,

none of whom were reported to be Wheatley, a single wholesale purchase attributed to Wheatley and

the amount reported on the Schedule C filed by Wheatley. The total amount of cost of goods was

calculated to be $42,694.66.

Schedule C (profit or loss from a business) was calculated using gross receipts less Cost of Goods and

expenses. The results of schedule C were a profit of $276,918.

Schedule C

Gross Receipts $410,608

Cost of Goods 42,695

Expenses 90,996

Profit/Loss $276,918

46

A Schedule SE is a federal tax form used to determine the tax due on net earnings from self-

employment. Schedule SE (self-employment tax) was re-calculated using the profit determined on

Schedule C. The results of schedule SE were a self-employment tax of $22,110 and a self-

employment tax deduction of $11055.

Schedule SE

Net Profit or (loss) Schedule C Line 2 $276,918

Total Income less approved reductions Line 3 $276,918

Self-Employment Tax - $118,500 or more

multiply by .029 plus $14,694 Line 5 $22,110

Report on line

57 of 1040

Deduction for 1/2 of self-employment tax - Line

5 multiplied by .50 Line 6 $11,055

Report on line

27 of 1040

Recalculation of Federal income tax 1040 for tax year 2016 resulted in a Federal tax liability of

$90,222. The calculation was based on Wheatley filing as single with one exemption. Total income

was reduced by SE deduction to compute the Adjusted Gross Income of $268,230. The Adjusted

Gross Income was reduced by subtracting the allowable standard deduction and credit for one

exemption resulting in a Federal taxable income of $257,880.

Colorado Income Tax was calculated by taking the amount of Total Taxable Income from the Federal

Return and applying the Colorado State Income Tax rate of 4.63% for a total amount due of $11,940

less withholding in the amount of $42. As Wheatley filed a return that resulted in a refund of $42

being issued that amount was added to the amount due.

According to the analysis, Wheatley filed a false Colorado Income tax return when she filed a return

stating a negative amount of Federal Taxable Income which ultimately resulted in a refund of $42

from the State of Colorado being issued on April 27, 2017. The correct amount of tax due the State

of Colorado is $11,898 ($257,880*.0463 [Colorado individual income tax rate] less amount of

withholding reported $42) of Colorado income tax in tax year 2016. However the amount due is

$11,940 as the amount paid by the State of Colorado as a refund is added back to $11,898.

Tax Year Social

Security

Number

CO Taxable

Income

CO Tax

Withheld

Refund

Received

CO Tax

Owed

2016 XXX-XX-

4179

$11,940 $42 $42 $11,940

Total $11,940

47

“ATTACHMENT A”

08/13/16 Leo Phillips 0251 08/14/16 William Holt, Jr. 0934 719-216-8026/[email protected]

08/16/16 Lourdes Russell 0578 (TX) 956-570-4592/[email protected]

08/16/16 Kei'Andre C. 0829 08/16/16 Anthony S. Maxeiner 0036 (MO) [email protected]

08/16/16 Andrea Pagan 0483 719-639-0949/[email protected]

08/17/16 Fred. W. Bake 1822 720-481-8463

08/17/16 Andrew King 4811 08/25/16 Sherman Bead 9316 719-482-4731

08/26/16 Chris Driver 7103 360-770-1660/[email protected]

08/26/16 Peggy Schmeckpeper 0323-72-0260 08/26/16 Vernon Colbert 0463 08/26/16 Courtney Washington 2287 (TN) 321-525-1589/[email protected]

08/26/16 Daniel DeHerrera 0776 719-419-4858/[email protected]

08/26/16 Carol Richardson 0256 [email protected]

08/26/16 Richard St.Louis 0699 (CO) 08/26/16 Ray Flores 0268 08/26/16 Pedro J. Cruz 0699 08/26/16 Kaci Rowley 0580 719-354-5996/[email protected]

08/30/16 Robert Osbourn 1189 08/30/16 Bruce Hughes 0261 719-355-4740/[email protected]

08/30/16 Brenda Phillips 0049 719-290-0884

08/31/16 Eric Ashby 1644 719-291-7418/[email protected]

08/31/16 Martina Quintanilla 7663 515-257-0653

08/31/16 Tina Miles 9971 515-266-7448

08/31/16 Thomas Buckner 9431 706-294-8400/[email protected]

08/31/16 Lucious Welly 8523 720-628-2142/[email protected]

08/31/16 Dustin Thom 4511 08/31/16 Robert Lahr 5690 719-578-5399/[email protected]

08/31/16 Robert Lee 4642 08/31/16 K. Jones 1931 [email protected]

08/31/16 Reggie Wright 7247 400-240-6017/[email protected]

08/31/16 Holly Hurtado 4728 719-220-0813/[email protected]

08/31/16 Gregg Huphrys 1133 08/31/16 Eddie Smith 6175 08/31/16 Hunam Ducommon 6113 08/31/16 Justin Wood 6611 08/31/16 Linda Brown 8785 08/31/16 Arthur Clifford Garcia 3270 08/31/16 Hugo Preciado 0312 08/31/16 Holly Sorell 0768

mailto:719-216-8026/[email protected]


mailto:[email protected]















48

08/31/16 Stacy Holly 0617 08/31/16 Vincent Robinson 01DK 08/31/16 Shaun McNemar, Sr. 0953 08/31/16 Joseph Lafferty 0383 719-337-8561/[email protected]

08/31/16 Jerrod Buice 0636 719-213-9274/[email protected]

08/31/16 Jennifer A. Mason 0739 302-276-5802/[email protected]

09/01/16 Rafael Camargo 1206 (CO) 719-722-4464/[email protected]

09/01/16 Ronald Hearn 4719 09/01/16 Crystal Pope 0650 719-495-9563/[email protected]

09/01/16 Javier Cruz 1887 719-644-4489/[email protected]

09/01/16 Paul Dunlap 0327 719-460-4167

09/01/16 Tanesha Jones Murry 0252 (CO) 09/01/16 John Mata 1008 361-571-8943/[email protected]

09/01/16 Anthony Hoder 0453 09/01/16 Nichole Smith 9844 214-753-7050/[email protected]

09/01/16 Manasia Smith 0328 09/01/16 Kelly Garriott 4432 713-514-4300/[email protected]

09/01/16 Doris Moment 8919 [email protected]

09/01/16 Kevin Johnson 9862 303-304-7001/[email protected]

09/01/16 Karen Barnett 4703 (MO) 09/01/16 James Barnett 7001 (MO) 09/01/16 Donald R. Ord 6524 719-360-4655

09/01/16 Raylene Rubio 0489 09/01/16 Patricia Goodrich 0478 720-982-3683/[email protected]

09/01/16 Philip Thompson 0257 09/01/16 Anita Jones 9256 719-964-6248/[email protected]

09/01/16 Jancel/Janel Miller 2881 09/01/16 Devin Smith 0901 09/01/16 Nicholas Chandler 0545 817-449-8395/[email protected]

09/01/16 Tyler Kennedy 0397 (CO) 719-648-4776/[email protected]

09/01/16 Ronnie Corey 0492 09/01/16 Ed Fromm 422 09/01/16 Edward Rubio 1329 09/07/16 Romeo Sudaria 1319 (CO) 09/07/16 Cedric Davis 7852 719-321-4167/[email protected]

09/07/16 Ronald C. Jones 1123 09/08/16 Robert Lozen 0112 09/08/16 Charles W. Cox 1974 719-282-5610

09/08/16 LaToia Neal 0911 09/08/16 Davonte Thompson 8002 (CA) 09/08/16 Matthew Reed 0852 (CA) 760-274-5968

09/08/16 Bryan Myers 4889 09/08/16 Ural Jackson 8221

















49

09/08/16 Joseph Pineda 4352 (MI) 810-259-5342/[email protected]

09/08/16 Myrion Rivera 0204 09/08/16 William V. Dorman 8356 09/08/16 Tom Sack 8231 09/08/16 Karen E. Shaffer 8433 09/08/16 Roger Mullins 0897 (VA) 09/09/16 Dennis Noeske 0433 719-459-6020/[email protected]

09/09/16 Geraldine Jimenez 5622 719-644-4176

09/09/16 Charles Harris

H620143771410

(FL) 09/09/16 Re'Mon C. Miller 6649 773-308-4350/[email protected]

09/09/16 Jeanette Hewlin 4430 719-216-7410/[email protected]

09/09/16 Amber Gutierrez 6971 719-216-7410/[email protected]

09/09/16 Tiffany Dalton 5476 208-404-5195/[email protected]

09/09/16 Roberto C. Delgado Cruz 0973 719-644-0465/[email protected]

09/10/16 Aaron Mans 1422/1922(?) 09/10/16 Richard Sutton 0253 09/10/16 Ara/Aria Ewing 2552 09/10/16 Sharaine Ewing 0812 09/10/16 Sharron Ewing 0572 09/10/16 David S. 1050 (FL) 09/10/16 James Grigsby 0866 09/10/16 Markilla Smith 1026 719-639-5541/[email protected]

09/11/16 Chris McEachin 5328 09/11/16 Gary Brutto 2020 719-419-0179/[email protected]

09/11/16 Mark Pangelinan 0538 09/13/16 Nanolo Morin 0751 09/15/16 Sydney Barker 7626 (TN) 931-801-1843

09/15/16 Tucker Heaton 5749 (TN) 931-216-5621/[email protected]

09/15/16 May Christine 3140 (OH) [email protected]

10/03/16 Eric Harvey 5002 10/03/16 Samuel Gallegos 8189 10/03/16 Jessica Boaman 0208 10/03/16 Kit Day 2007 10/03/16 Joe Timerman 5382 (NE) 10/03/16 Kemone Scott 0662 10/03/16 Rochelle Adams 9360 10/03/16 Howard Smith 7928 10/04/16 Sharon L. Henson 0269 10/04/16 Jennifer Queen 0422 10/04/16 Chris Sanders 1265 10/04/16 Haywood Miller 0284 10/15/16 Alisha Newberry 0537












50

10/16/16 Leonard Contreras 0945 10/16/16 Calvin Baker 299-0 6135 (FL) 10/16/16 Jose Cuevas 0895 10/16/16 Jadelyn Vincent 0488 10/16/16 Cesar Contreras 0986 10/16/16 Ashley Kabel 6014 10/16/16 Billy (Jo) Wathey 3038 10/16/16 Steven Miles 8092 10/16/16 Michael Wallace 0551 10/16/16 Tina Crabtree 0382 10/16/16 Jesse Westfall 4342 (OH) 10/16/16 Nateria Williams 5756/5946/5456(?) 10/16/16 Cangeron Gibson 0663 10/16/16 Elena Rodriguez 0051 10/17/16 Elia Vera 4194 10/17/16 Raul Munoz 0478 10/17/16 Jamie Butler 0085 10/17/16 Imani Mauzon 5521 (CA) 10/17/16 Jesse Brady 0790 10/17/16 Rodney Boemer 3616 (MN) 10/17/16 David Bailey 0443 10/17/16 Ira Franklin 0311 (AR) 10/17/16 Andrews Adams 9547 (MD) 10/17/16 Jeneva Nelson 7127 (OK) 10/17/16 Xavier Cochran 2392 (OK) 10/17/16 Maverick Rhone 7362 10/17/16 Andre Williams 9843 (TX) 10/18/16 Christopher Luera 6955 (TX) 10/18/16 Paul E. Newton 9972 10/18/16 Candace Martinez 3145 (TX) 10/18/16 Angela Newton 4501 10/18/16 Jacqueline Bozeman 7058 10/18/16 Danzelle Ford 6958 10/18/16 Espinoza 1958 10/18/16 Jamika Elliott 1056 10/18/16 James Honaker, Jr. 0661 10/18/16 Demetrius Goldston, Jr. 0874 10/18/16 Michael Lafordy 9710 10/18/16 Damien Clair 0461 10/18/16 Raynie King 1325 10/19/16 Cody Claeys 4507 10/19/16 Lorenzo Duarte 1184 10/19/16 Larry Valadez 1934

51

10/19/16 Keith Adams, II 3040 (FL) 10/19/16 Marie Morales 0687 10/19/16 Jeff Dugger 5831 10/19/16 James R. Dolson 0572 10/19/16 J. Swuartz 2500 10/19/16 Zenas Nations, Jr. 0470 10/19/16 Savanah Pease 0449 10/19/16 Rob Hask 0381 10/19/16 James "Andrew" Russell 0631 10/19/16 Chance Dearth 0724 10/19/16 Dwandre Parker 3682 10/19/16 Jennifer Harris 8122 (OK) 10/19/16 Adam Harris 8115 10/20/16 Anthony S. Velasquez 3149 10/20/16 Brook Shenberg 8557 10/20/16 April Meraz 0249 10/20/16 Demetrius Somerville 0748 10/20/16 Marcy White 1096 10/20/16 Pamela Shipp 6074 10/20/16 Rylan Timmons 0825 10/20/16 Stephanie Dorman 0490 (CO) 10/20/16 Marlana Dorman 8320 10/20/16 Destiny Morran 0385 10/20/16 Kathleen Buoniconti 0127 10/20/16 Faatalale Taase 0039 10/21/16 Raymond Proveneo 0950 10/21/16 Terrel Atencio 1149 10/22/16 Robert Thomas 0109 (MO) 10/22/16 Robert Bishop 0346 10/22/16 James Hilton 4653 10/22/16 Edgar Contreras 4261 10/22/16 Tania Nathan 0097 10/22/16 Daniel Quintana 1019 10/22/16 Ricardo Fagins 4939 11/11/16 William Maestas 3119 11/11/16 Ethan Miller 0886 11/11/16 Randall M. Reese, Jr. 0769 11/11/16 Kristen Crable 0875 [email protected]

11/11/16 Bradley Crable 0817 [email protected]

11/11/16 Evangelina Buell 0730 (CO) [email protected]

11/11/16 Anthony Norvell 1023 11/11/16 Samantha Hyatt 0596 11/11/16 Delinski Banks 0559/7?




52

11/11/16 Mustafa 0195 11/11/16 Roy Masada 2019 [email protected]

11/11/16 Anthony W. Kent 0103 11/11/16 Valerie L. DeMarco 0070 11/11/16 Michael Brister 0165 11/11/16 Trey Jones 0498 11/11/16 Carlos Vergara 02672 11/11/16 Feleicia Andrews 0038 11/11/16 Mario De La Torre 0321 11/11/16 Hayward Reed 4166 (TX) [email protected]

11/15/16 Devonia Smith 0761 11/15/16 Eric Dockery 0721 [email protected]

11/15/16 Karlos Poindexter 2452 [email protected]

11/15/16 Genoveva Martinez 6345 11/15/16 Courtney Stutzman 0453 [email protected]

11/15/16 Julie Welch FA 5041 11/15/16 Frances Velasquez 2699 11/15/16 Mario Herrera 0361 11/15/16 Aaron Peterson 0935 [email protected]

11/15/16 Vincent Salaz 0119 11/15/16 Crystal Sorenson 0545 [email protected]

11/15/16 Dawn Kempers 5366 11/16/16 Brian Aniler 0173 11/16/16 Bradley Brown 5468 11/16/16 Faith Turner 0709 11/16/16 Rachael Schreiner 0892 11/16/16 James Samson 0858 11/16/16 John J. Kruck 1078 11/16/16 Roy E. Gaw 0478 [email protected]

11/16/16 Shirley Cucer 7507 11/16/16 Merrilee Morgan 0353 11/16/16 Andrew Moore 1057 11/16/16 Paul Williams 1212 11/16/16 Justin Peterson 0554 [email protected]










53

AS TO COUNT ONE:

A TRUE BILL A NO TRUE BILL

_________________________ ____________________________

Foreperson Foreperson

AS TO COUNT TWO:


_________________________ ____________________________


AS TO COUNT THREE:


_________________________ ____________________________


AS TO COUNT FOUR:


_________________________ ____________________________


AS TO COUNT FIVE:


_________________________ ____________________________


AS TO COUNT SIX:


_________________________ ____________________________


54

AS TO COUNT SEVEN:


_________________________ ____________________________

AS TO COUNT EIGHT:


_________________________ ____________________________


AS TO COUNT NINE:


_________________________ ____________________________


AS TO COUNT TEN:


_________________________ ____________________________


AS TO COUNT ELEVEN:


_________________________ ____________________________


AS TO COUNT TWELVE:


_________________________ ____________________________


AS TO COUNT THIRTEEN:


_________________________ ____________________________


55

AS TO COUNT FOURTEEN:


_________________________ ____________________________


AS TO COUNT FIFTEEN:


_________________________ ____________________________


AS TO COUNT SIXTEEN:


_________________________ ____________________________


AS TO COUNT SEVENTEEN:


_________________________ ____________________________


AS TO COUNT EIGHTEEN:


_________________________ ____________________________


AS TO COUNT NINETEEN:


_________________________ ____________________________


AS TO COUNT TWENTY:


_________________________ ____________________________


56

AS TO COUNT TWENTY ONE:


_________________________ ____________________________


AS TO COUNT TWENTY TWO:


_________________________ ____________________________


AS TO COUNT TWENTY THREE:


_________________________ ____________________________


AS TO COUNT TWENTY FOUR:


_________________________ ____________________________


AS TO COUNT TWENTY FIVE:


_________________________ ____________________________


AS TO COUNT TWENTY SIX:


_________________________ ____________________________


AS TO COUNT TWENTY SEVEN:


_________________________ ____________________________


57

I, ____________________________, the Foreperson of the 2016-2017 Colorado State Grand Jury, do

hereby swear and affirm that each and every True Bill returned in this superseding indictment by the

2016-2017 Colorado State Grand Jury was arrived at after deliberation and with the assent and

agreement to the existence of probable cause by at least nine members of the Colorado State Grand

Jury. The Colorado State Grand Jury further authorizes and instructs the Colorado Attorney General

to return this superseding indictment to open court with or without the presence of the foreperson.

_____________________________

Foreperson

Subscribed to before me in the City and County of Denver, State of Colorado, this 25th day of May,

2017.

______________________________

Notary Public

My commission expires:______________________

58

CYNTHIA H. COFFMAN

ATTORNEY GENERAL

STATE OF COLORADO

__________________________

MICHAEL W. MELITO

Senior Assistant Attorney General

Criminal Justice Section

Special Prosecution Unit

__________________________

JON W. IPPOLITO


Deputy District Attorney

4th Judicial District District Attorney’s Office

__________________________

ANDREW S. VAUGHAN


Deputy District Attorney

4th Judicial District District Attorney’s Office

The 2016-2017 Colorado Statewide Grand Jury presents the within Superseding Indictment, and the

same is hereby ORDERED FILED this 25th day of May, 2017.

Pursuant to §13-73-107, C.R.S., the Court designates El Paso County, Colorado as the county

of venue for the purposes of trial.

Dated this 25th day of May, 2017.

____________________________

Chief Judge Michael Martinez

Presiding Judge, State Grand Jury

59

WARRANTS TO ISSUE:

BOND FOR JOSEPH HOPPER (A.K.A. “JOEY HOPS”) SET AT $150,000.00 C/S/P

Conditions of bond include:

No contact with any codefendants

Obey all state and federal laws

That the defendant shall refrain from harassing, molesting, intimidating, retaliating against, or

tampering with any witnesses to the acts charged.

BOND FOR DARA WHEATLEY (A.K.A. “BOSS LADY”) SET AT $150,000.00 C/S/P






BOND FOR ADAM DONALDSON (A.K.A. “POPS”, “POPZ”) SET AT $75,000 C/S/P






BOND FOR JOSEPH SERGIO CRIVICI (A.K.A. “JOSEPH CRAVICI”) SET AT $75,000 C/S/P






60

BOND FOR DERRICK BERNARD (A.K.A. “UGRILLA PHOENIXX”, “PHOENIXX UGRILLA”,

“PHEONUAX”) SET AT $125,000 C/S/P






BOND FOR NATHAN BERNHEISEL (A.K.A. “BERNIE, “SHANLEY LEONE”, “FRANKIE”,

“NATE”) SET AT $125,000 C/S/P






BOND FOR VICTORIA FERNANDEZ (A.K.A. “TORI”) SET AT $25,000 C/S/P






BOND FOR MARCEE SMITH (A.K.A. “MARLEY”) SET AT $25,000 C/S/P






61

BOND FOR ALEJANDRA GONZALEZ (A.K.A. “ALE”) SET AT $25,000 C/S/P






BOND FOR RAYLENE RUBIO (A.K.A. “RAY”, “RAE”, “RAYLEEN”, “RAYLEAN”) SET AT

$25,000 C/S/P






BOND FOR NICOLE SANDOVAL (A.K.A. “NIKKI”) SET AT $25,000 C/S/P






BOND FOR ASHLEY HEFNER SET AT $25,000 C/S/P






62

BOND FOR MELISSA COLMUS SET AT $25,000 C/S/P






Dated this 25th day of May, 2017.

____________________________

Chief Judge Michael Martinez

Presiding Judge, State Grand Jury

district court, city and county of denver, … · district court, city and county of denver, ......

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