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Tag: David Sergi

Dallas Raids Expose a Troubling Pattern of Official Overreach

In a stunning display of government overreach, law enforcement officers descended upon three licensed hemp distribution warehouses in Dallas’s Harry Hines district yesterday. The targets — Monster, Frontline Wholesale, and Cannafy Distribution — weren’t criminal enterprises dealing in illicit substances. They were legitimate businesses distributing federally compliant hemp products, complete with lab certifications and QR codes linking to their Certificates of Analysis.

 

Yet here we are, watching Texas law enforcement raid legal businesses not for breaking existing laws, but in anticipation of legislation that hasn’t even been signed.

 

 

The Science They Don’t Want You to Know

 

Every product seized in these raids came with documentation from DEA-registered, ISO-accredited laboratories confirming compliance with the federal standard: less than 0.3% delta-9 THC. These aren’t back-alley operations — these are businesses following the rules, relying on certified labs and validated testing methods.

 

 

But that hasn’t stopped state officials from cherry-picking their science. The Texas Forensic Science Commission has repeatedly warned against the misuse of gas chromatography without derivatization — a testing method that can artificially convert non-psychoactive compounds into delta-9 THC, producing false “hot” results. Instead of heeding these warnings, certain officials have weaponized faulty testing to justify their crackdown.

 

“They opted for the tests that guaranteed a ‘hot’ result,” explains Jay Maguire, Executive Director of the Texas Hemp Federation. “More raids. Rinse. Repeat. Each one built on a foundation of manipulated science and prosecutorial deception.”

 

Beware the Badge-Wielding Politician

 

At the center of this storm stands Allen Police Chief Steve Dye, a man who seems more interested in political theater than public safety. Dye has orchestrated militarized raids on taxpaying businesses, detained veterans and senior citizens at gunpoint, and now finds himself named as a defendant in a federal civil rights lawsuit.

 

His claims about cannabinoid products would be laughable if they weren’t so dangerous. He insists his jail is filled with cannabinoid victims suffering catastrophic health outcomes — claims that mysteriously don’t appear in Poison Control records or hospital admission logs. When actual hospitalizations do occur, they almost invariably involve alcohol and hard drugs like meth or heroin used simultaneously with hemp products.

 

When confronted with these facts? Chief Dye “doesn’t want a scientific debate.”

“Steve Dye may wear a police chef’s Stetson, but to the millions of Texans whom his smear tactics and abuse of his office continues to injure, he’s all hat, no cattle,” Maguire observes. “He used discredited science, inflammatory rhetoric, and raw force to build a career off fear — not real science, real facts, or real people, because so far as I can see he’s not interested in real justice.”

 

The Real Agenda: Control and Corruption

 

David Sergi, lead counsel for Monster Distribution, doesn’t mince words about what’s really happening here: “This raid was not based on facts. It was based on political theater.”

 

The enforcement pattern reveals something far more sinister than misguided public safety concerns. This is about collapsing an $8 billion industry to hand the spoils to politically connected licensees. It’s about manufacturing a moral panic to justify a government takeover of a thriving free market.

 

“The lies and distortions — from the phony outrage on the House floor to dubious claims about ‘poisoning children’ — were never about public safety,” Sergi explains. “They were about consolidating power under the state and its chosen few. It reeks of political favoritism, if not outright corruption.”

Veterans in the Crosshairs

 

Perhaps the cruelest irony in this saga is how it betrays the very Texans these politicians claim to support. Senate Bill 3, the legislation driving these preemptive raids, would force thousands of veterans, cancer patients, and chronic pain sufferers into the state’s limited medical cannabis registry.

 

Here’s what they don’t tell you: Under federal law, anyone enrolled in the Texas Compassionate Use Program becomes a “prohibited person” under 18 U.S.C. § 922(g)(3) — meaning they lose their Second Amendment rights.

 

Think about that. The same politicians who wrap themselves in the flag and champion gun rights are forcing veterans to choose between pain relief and their constitutional freedoms. The same officials who promise to defend the Second Amendment are creating a registry that strips those rights away.

 

Official Oppression Has a Name

 

When law enforcement acts outside its authority to deprive businesses and individuals of their rights and property, Texas has a word for it: official oppression. Under Texas Penal Code § 39.03, it’s a crime.

 

“When state agents knowingly act outside the scope of the law to deprive Texans of their rights or property, they aren’t just overstepping — they’re abusing power,” Maguire states.

 

These aren’t drug traffickers. These are businesses that have operated legally in Texas for five years, serving customers who overwhelming support access to hemp products. The enforcement actions aren’t about health and safety — they’re about control through “badges and guns.”

 

 

 

The Call to Action

 

As these raids continue and Senate Bill 3 awaits Governor Abbott’s signature, the Texas hemp industry and its supporters face a critical moment. Will Texas stand for free enterprise, scientific integrity, and constitutional rights? Or will it allow political theater and official oppression to destroy a legal industry that serves hundreds of thousands of Texans?

 

“Governor Abbott has long stood as a defender of both small business and the Second Amendment,” Maguire notes. “We believe he will see this situation for what it is — an overstep that undermines personal freedom and patient access.”

 

The message is clear: Veto Senate Bill 3. Stop the raids. Respect the law as it exists, not as some politicians wish it to be. And above all, stop forcing Texans to choose between their health and their constitutional rights. Because when law enforcement becomes a tool of political ambition rather than justice, we all lose.

Jury Finds LoneStar Farms, LLC, “d/b/a” Sweet Sensi Committed Constructive Fraud Against CenTex CBD

LoneStar Does Not Own Trade Secrets Listed in Court Filings

CenTex CBD beat back a claim by LoneStar Farms LLC, better known as Sweet Sensi, and their lawyer, Lisa Pittman, of misappropriation of trade secrets and intellectual property and allegations of unethical conduct. This ruling of Constructive Fraud and other charges against Sweet Sensi will have significant implications for the rapidly growing and changing hemp industry in Texas.

During the case, Greg Autry of Sweet Sensi attacked Wyatt Larew of Wyatt Purp and the Texas Hemp Reporter in an advertisement published in The Austin Chronicle on October 25, 2024. The jury verdict completely vindicated Larew and the Texas Hemp Reporter for its initial coverage of the case.

“Sweet Sensi tried to cover up its bad behavior and questionable business practices by attacking me. I am grateful that the jury ruled in CenTex’s favor and vindicated me. I am disappointed in my former attorney, Lisa Pittman, who took a contradictory position after providing a legal opinion for me. Justice is the winner this week. Also, Hemp businesses in Texas won because bad actors need to be exposed, and ethical standards must be respected,” said Larew.

The conduct of Sweet Sensi’s lawyer, Pittman, has come into question. During the legal process, Pitman moved the case to District court from small claims court, which allowed Sweet Sensi to counter-sue for $250k-1 million in damages. While the trial was progressing, CenTex asked the judge to sanction Pittman. The judge agreed and sanctioned her. Additionally, the judge found it necessary to remind Pittman of her Fifth Amendment right against self-incrimination, raising the concern that her actions could be viewed as criminal, not just unethical.

“The Texas Hemp Reporter bases our reporting on court filings and public documents. Factual court reporting does not require commentary for the parties involved to “spin” us with their interpretation of court proceedings,” said Russell Dowden, Publisher of the Texas Hemp Reporter.

In this case, the jury ruled that Sweet Sensi did not own certain trade secrets, which contradicts what Autry of Sweet Sensi said in his paid advertisement.

“In my opinion, the jury did a good job seeing through the thinly veiled arguments presented by Sweet Sensi attempting to misuse trade secrets and the patent process. Hemp businesses must maintain their integrity so we can continue to supply products for the people who need them the most,” said David Sergi, Attorney for Wyatt Purp and other hemp-related businesses.

{What Does the Future of Hemp hold for the Lone Star State? Operators will be more accountable to retailers moving forward.}

In addition to finding Sweet Sensi committed constructive fraud, the jury returned unanimous verdicts, finding that Sweet Sensi engaged in false, misleading, deceptive, and unconscionable actions when the jury answered the following questions.

  • Did LoneStar engage in any false, misleading, or deceptive act or practice that CenTex relied on to its detriment and that was a producing cause of damages to CenTex? Jury said Yes.
  • Did LoneStar engage in any unconscionable action or course of action that was a producing cause of damages to CenTex? Jury said Yes.
  • Did CenTex and LoneStar agree that CenTex’s cherry limeade gumdrops ordered from LoneStar would come with red sugar and contain approximately 15 mg of Delta 8 per gumdrop? Jury said Yes.
  • Did CenTex and LoneStar agree that LoneStar would provide shelf-ready/consumer-ready gumdrops to CenTex? Jury said Yes.
  • Did LoneStar fail to comply with its agreement with CenTex, if any? Jury says Yes.
  • Did CenTex substantially rely to its detriment on LoneStar’s promises), if any, and, if so, was CenTex’s reliance foreseeable by LoneStar? Jury said Yes.
  • Did LoneStar obtain a benefit from CenTex by fraud or the taking of an undue advantage? Jury said Yes.
  • Did LoneStar fail to comply with the Manufacturing Service Agreement? Jury said Yes.
  • Did LoneStar own a trade secret in the formula, pattern, compilation, program, method, technique, process, or list of actual or potential customers listed below?
    • 1. The rosin-based process used to design and manufacture LoneStar’s rosin-based products. Jury said No.
    • 2. The process for designing and manufacturing LoneStar’s rosin base. Jury said No.
    • 3. The process for designing and manufacturing LoneStar’s rosin-based products. Jury said No.
    • 4. The process for designing and manufacturing LoneStar’s vape cartridges and gummy products. Jury said No.

In addition to these findings, LoneStar Farms LLC dba Sweet Sensi must pay monetary damages to CenTex CDB.

Additional steps related to the people and businesses involved in this case will be taken in the coming weeks. We will continue to inform the public about any developments.

For media interviews. Please contact Kevin Lampe at (312) 617-7280 or kevin@kurthlampe.com.

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9 Shops Raided by Allen PD for Hemp

On Tuesday, August 27th, Allen Police raided nine hemp shops, accusing them of selling illegal
products containing higher-than-allowed levels of THC. Texas Hemp lawyer David Sergi, who
represents eight of the nine store owners, stated that his clients were operating legally under
both Texas and Federal law.

San Marcos-based attorney Sergi emphasized that his clients are being accused of
manufacturing and distributing illegal tetrahydrocannabinol (THC) products, but under current
state and federal guidelines, the products they sell are legally permissible.


Who is at Fault?

While many argue that the Allen Police Department overstepped by executing search and
seizure warrants, there is a broader context. The DEA had been conducting a joint task force
investigation, targeting similar shops less than a month prior. Subpoenas were issued to several
of these same store owners earlier in the summer, with the DEA seeking access to financial
documents, customer transactions, and supplier lists—requests that Sergi claims violate the
Fourth and Fifth Amendments to the U.S. Constitution.

Sergi, who previously helped overturn a statewide ban on consumable hemp products,
successfully defended his clients against these subpoenas. In that case, a federal judge ruled
that the DEA could not obtain the requested information, marking a significant victory for the
businesses involved.

“This is straight out of a Russian KGB novel or a mafia gangster film,” Sergi remarked,
comparing the heavy-handed tactics to fiction.

The stores recently raided, including Lit Smoke & Vape, Chasing Vapes, and Hazel Sky, are some
of the same businesses Sergi represents in ongoing legal battles with the Allen Hemp Coalition.

Fighting Back

AJ Velador, founder of Hemp Industry Leaders of Texas (HILT), is organizing a GoFundMe page
to assist with bond and legal expenses for those affected by the raids. Velador and his
organization aim to put an end to what they see as unlawful and disruptive actions against legal
hemp operators and retailers in Texas.

Sergi echoed Velador’s concerns, describing the raids as poorly conceived and
counterproductive. The coalition, comprised of small, family-owned businesses, provides
employment to many in the Allen area and serves customers in need of legal cannabinoids,
such as veterans and individuals suffering from pain and PTSD, as alternatives to opioids.
Sergi further warned that the city’s actions could inadvertently open the door for cartels to step
in with unregulated and dangerous products. Industry professionals, he said, strive to work with
law enforcement to ensure that compliant products are sold to adult consumers.

The Bigger Picture for Hemp Operators

The ongoing raids have raised several critical questions for hemp business operators. How is
law enforcement testing these products? Are they using the same standards that certified labs
use to issue Certificates of Analysis (COAs)?

These concerns are especially pressing as the hemp industry faces a new legislative session,
during which lawmakers are expected to address product labeling, packaging, and age
restrictions. The May 2024 hearing of the State Affairs Committee highlighted these issues.

Sergi & Associates Response

David Sergi argues that the actions of the Allen Police Department and the DEA represent a
clear escalation of tactics used across the state to intimidate businesses selling legal hemp-
based products. According to Sergi, the raids resulted in the destruction of products, the seizure
of point-of-sale systems, and the confiscation of personal computers belonging to
employees—all actions that he contends were unlawful.


“These businesses are operating legally under Texas law,” Sergi said. “There is a right way and a
wrong way to address compliance concerns, and they have chosen the wrong way. They will be
held accountable.”

Sergi is no stranger to cases like this. He also defended Sky & Hobbs after their indoor growing facility was raided by Navarro County sheriffs in 2021.

The Allen Hemp Coalition, representing many of the affected businesses, is currently fighting in
court to uphold their legal rights to operate. Sergi and his team have already successfully stayed
a DEA subpoena they deemed a blatant “fishing expedition.”

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