Two Plead Guilty to Operation of Butane Hash Oil Lab In Kinsley Ave Warehouse

Tuesday, August 29, 2017

 

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Two men pleaded guilty in federal court in Providence to their roles in the operation of a butane hash oil (BHO) manufacturing laboratory inside a former warehouse on Kinsley Avenue in Providence.

Investigators believe that a March 9, 2015, fire started in a room where the BHO lab was located. GoLocalProv was first to report that butane was present in the building.

Christopher White, 51, of Warwick, pleaded guilty to endangering human life while illegally manufacturing a controlled substance.

Graeme Marshall, 52, of Cranston, pleaded guilty to money laundering.

White and Marshall are scheduled to be sentenced on November 13, 2017.

The Incident

According to court documents and information presented to the court, White and Marshall operated Grosca, LLC, a company that leased the warehouse where White and Marshall operated a business that designed, produced and sold indoor equipment and supplies for indoor marijuana cultivation.

According to court documents, White and Marshall used a portion of the warehouse to operate a BHO lab, which, over a period of approximately two years, was used to manufacture over 1,000 grams of hash oil that was sold for between $15 and $30 per gram. Proceeds from the sale of hash oil were deposited into a Grosca, LLC, bank account, commingled with proceeds from the sale of equipment and other Grosca, LLC ventures.

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Kinsley Avenue fire

The transactions were designed to conceal the nature, source, ownership, and control of the proceeds of the hash oil sales.

The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.

The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Drug Enforcement Administration; Providence Police Department; Providence Fire Marshal’s Office; Rhode Island State Police; and the Rhode Island State Fire Marshal’s Office.

 

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