Matthai Kuruvila
Thursday, April 19, 2012
The future of Oaksterdam University, a school offering classes in the cannabis industry, appears shaky in the wake of a federal raid two weeks ago.
Money is tight, Oaksterdam cannot afford to pay the $30,000-a-month rent on its leased building, 45 employees have lost their jobs, and the school's computers, records and even the curriculum are now in the hands of federal agents.
On April 2, agents from the Internal Revenue Service, the Drug Enforcement Administration and the U.S. Marshals Service raided Oaksterdam and various affiliated businesses and at least one home, all of which were controlled by marijuana legalization advocate Richard Lee. The reasons for the raid remain unclear.
"The court documents are still under seal, so we are unable to provide any additional details," said Casey Rettig, a special agent for the DEA.
Prior to the raid, Oaksterdam was supported financially by income from tuition as well as the other businesses, including the city-permitted dispensary. But now, the for-profit school is seeking to operate independently of those organizations and must rely on tuition to survive.
"In the short term, we can only survive through new enrollments," said Dale Sky Jones, the school's executive chancellor and new leader.
But there is concern that the federal crackdown on California's medical marijuana dispensaries may scare off future students.
Jones said enrollment began to decline in October, when the state's four U.S. attorneys announced that they would be targeting what they deemed illegal marijuana cultivation and trafficking.
The school averaged about 60 students for its once-a-month weekend course this year. Two years earlier, the school averaged about 90 students per weekend course and had two of those courses a month.
Jones said the crackdown "is scaring students" even though, as she noted, "the curriculum itself is not illegal."
Students are taught everything from the history, law and politics of marijuana as well as methods of ingesting, cooking and vaporizing pot.
The 5-year-old school claims it has had some 15,000 students to date. Its busiest time was in early 2010, the peak of what many termed "a gold rush" for pot. Lee, Oaksterdam's founder, was sponsoring Proposition 19, a statewide measure to legalize adult recreational use of marijuana. Oakland officials, at the urging of Lee and others, were considering building marijuana farms the size of multiple football fields. The measure ultimately failed and the city backed off the idea of opening farms.
At that time, the school had hundreds of students a month. There were twice-a-month, weekend-only classes as well as people enrolled in 10- and 13-week courses.
The school was an attempt to transform part of Oakland into the Amsterdam for the Americas, a haven for legal drug use. Tourists came to see the school, particularly for its monthly tours, and guidebooks noted it.
Lee has described Oaksterdam as a "political institution" whose mission "is to legitimize the business and work to change the law to make cannabis legal."
Since the April 2 raid, Lee has stepped aside, believing that the federal government's interest in him makes the school a target. As with alcohol prohibition, Lee says many have seen their cannabis fortunes crumble due to the federal government's prosecution. But in the 16 years since California voters legalized medical marijuana, an industry has grown. There are thousands of medical marijuana patients and hundreds of dispensaries. Colorado and Washington are considering legalization initiatives.
The momentum can't be stopped, Lee said.
"While the war isn't over," he said, "we have an army to fight it with."
Thursday, April 19, 2012
The future of Oaksterdam University, a school offering classes in the cannabis industry, appears shaky in the wake of a federal raid two weeks ago.
Money is tight, Oaksterdam cannot afford to pay the $30,000-a-month rent on its leased building, 45 employees have lost their jobs, and the school's computers, records and even the curriculum are now in the hands of federal agents.
On April 2, agents from the Internal Revenue Service, the Drug Enforcement Administration and the U.S. Marshals Service raided Oaksterdam and various affiliated businesses and at least one home, all of which were controlled by marijuana legalization advocate Richard Lee. The reasons for the raid remain unclear.
"The court documents are still under seal, so we are unable to provide any additional details," said Casey Rettig, a special agent for the DEA.
Prior to the raid, Oaksterdam was supported financially by income from tuition as well as the other businesses, including the city-permitted dispensary. But now, the for-profit school is seeking to operate independently of those organizations and must rely on tuition to survive.
"In the short term, we can only survive through new enrollments," said Dale Sky Jones, the school's executive chancellor and new leader.
But there is concern that the federal crackdown on California's medical marijuana dispensaries may scare off future students.
Jones said enrollment began to decline in October, when the state's four U.S. attorneys announced that they would be targeting what they deemed illegal marijuana cultivation and trafficking.
The school averaged about 60 students for its once-a-month weekend course this year. Two years earlier, the school averaged about 90 students per weekend course and had two of those courses a month.
Jones said the crackdown "is scaring students" even though, as she noted, "the curriculum itself is not illegal."
Students are taught everything from the history, law and politics of marijuana as well as methods of ingesting, cooking and vaporizing pot.
The 5-year-old school claims it has had some 15,000 students to date. Its busiest time was in early 2010, the peak of what many termed "a gold rush" for pot. Lee, Oaksterdam's founder, was sponsoring Proposition 19, a statewide measure to legalize adult recreational use of marijuana. Oakland officials, at the urging of Lee and others, were considering building marijuana farms the size of multiple football fields. The measure ultimately failed and the city backed off the idea of opening farms.
At that time, the school had hundreds of students a month. There were twice-a-month, weekend-only classes as well as people enrolled in 10- and 13-week courses.
The school was an attempt to transform part of Oakland into the Amsterdam for the Americas, a haven for legal drug use. Tourists came to see the school, particularly for its monthly tours, and guidebooks noted it.
Lee has described Oaksterdam as a "political institution" whose mission "is to legitimize the business and work to change the law to make cannabis legal."
Since the April 2 raid, Lee has stepped aside, believing that the federal government's interest in him makes the school a target. As with alcohol prohibition, Lee says many have seen their cannabis fortunes crumble due to the federal government's prosecution. But in the 16 years since California voters legalized medical marijuana, an industry has grown. There are thousands of medical marijuana patients and hundreds of dispensaries. Colorado and Washington are considering legalization initiatives.
The momentum can't be stopped, Lee said.
"While the war isn't over," he said, "we have an army to fight it with."
