(footsteps) (keypad beeping) (door beeps) (electricity buzzing) ♪♪ <i> VAN ZELLER:
California is the epicenter</i> <i> of a massive
social experiment --</i> <i> legalized marijuana.</i> ♪<i> There's not many
roads left to follow</i> ♪ <i> VAN ZELLER: Supporters
claimed it would rein in</i> <i> the world's largest
marijuana black market</i> <i> or crush it altogether.</i> ♪<i> You are the kind,
can't be denied</i> ♪ ♪<i> Oh, I'll never let you go</i> ♪ <i> VAN ZELLER: But four years in,
no one could have predicted</i> <i> that legalization would have
the opposite effect,</i> <i> energizing the illicit trade</i> <i> that's now three times larger
than the legal one.</i> JUAN:
The black market for weed? It's exploding right now, man. OFFICER: Go. ♪♪ ♪♪ Captioned by VITAC ♪<i> Concentrate, now concentrate,
now concentrate</i> ♪ ♪<i> Now concentrate, now
concentrate, now concentrate</i> ♪ <i> VAN ZELLER: Drive anywhere
in L.A., and before long,</i> <i> I guarantee,
you'll pass a weed shop.</i> <i> They're everywhere.</i> ♪<i> Bright out tonight</i> ♪ <i> VAN ZELLER: The telltale
green crosses of weed shops</i> <i> are now just as much a part
of the landscape</i> <i> as the palm trees
and taco trucks.</i> ♪<i> Ready, with the box cutters
and the machetes</i> ♪ ♪<i> Level than most like
angels smokin' dope</i> ♪ <i> VAN ZELLER:
But all is not what it seems.</i> VAN ZELLER: Tell me some
of the examples of people -- you don't need to say names
if you don't want to -- but people that
you've sold weed to. Well, a little bit
of everybody, high and low. Homeless people, people that
appear to be out of their mind, doctors, lawyers,
rock stars, rap stars, you know, athletes. You know what I mean?
Everybody knows about me. -VAN ZELLER: Is that true?
-Yeah. What do they know you by? Saying I'm the king
of the $5 gram. I started $5 gram. What's $5 gram? That means that people
could smoke on a budget. If you didn't have
a lot of money, I would give you a gram of some,
you know, fair weed for $5. Is that still profitable
for you, though? If you get 1,000 of them
in a week, it can make sense. <i> The man behind the wheel,
NNERG,</i> <i> is taking me to his dispensary
in South L.A.</i> ♪♪ ♪♪ (buzzer) ♪♪ NNERG: Thank you, sir!
Enjoy that. What's up, man?
What you need? A gram? ♪♪ VAN ZELLER: You're weighing
everything here? CLERK: Yes. Ah, it's the $5 gram! NNERG: Yeah, it's $5 gram. <i> Due to the hefty taxes --</i> <i> as high as 45%
in California --</i> <i> a gram of weed can set you back
15 to 20 bucks.</i> <i> So you might be wondering
how NNERG's dispensary</i> <i> can afford to sell weed
at such rock-bottom prices.</i> <i> The answer is simple.</i> So the business you're
running here is illegal? Yeah, technically. <i> Get this.</i> <i> Four years after California
legalized marijuana in 2016,</i> <i> up to 80% of dispensaries
in the state</i> <i> are just like NNERG's, illegal.</i> ♪<i> Suite and a balcony,
forget what time it is</i> ♪ ♪<i> I'm alive, bitch,
bitch, I'm alive</i> ♪ <i> VAN ZELLER:
They're part of a bustling</i> <i> $9 billion black market</i> <i> that's blossomed
in the wake of legalization.</i> <i> And I'm itching to understand
how the state</i> <i> got it all so wrong.</i> VAN ZELLER: When you think about
illegal marijuana, you don't think
about dispensaries. People think that
they're all legal. After it was legalized,
the black market actually grew. Right now in California, there
are more unlicensed dispensaries than licensed dispensaries. VAN ZELLER: And that's what
you're going after today? Correct. VAN ZELLER: Wow. There's another
surveillance camera right above the door here. <i> Here's the thing about
these underground shops.</i> Do you want to be licensed? Yeah. Why not? They just got so many hurdles. <i> Many of them
wanted to go legal,</i> <i> but the path to licensing
is fraught with problems.</i> It's taxed like three
or four times the amount that alcohol is taxed. All of the hoops
that you have to jump through. We won't have the capital,
the licenses are too expensive. <i> It's an entrepreneur's
worst nightmare.</i> <i> Someone like NNERG
faces a minefield</i> <i> of complex regulations.</i> <i> And above all,
they need cash, lots of cash,</i> <i> often hundreds of thousands
of dollars</i> <i> to pay for up-front costs,
license fees,</i> <i> and rent for
an unopened storefront.</i> <i> And good luck getting a loan,</i> <i> since virtually no banks
will issue them</i> <i> while cannabis remains
federally illegal.</i> <i> And guess who doesn't have
access to that much capital.</i> You know, and just by
our history in this country, I didn't think we had
anything coming as a people. And I was right. <i> The same communities
that were locked up the most</i> <i> for cannabis offenses</i> <i> are the ones getting locked out
of the legal market.</i> They're saying
that out of 187 dispensaries, only three of those people
are black owners. -In all of L.A.?
-NNERG: Yeah. VAN ZELLER: Do you think
that's why so many people just prefer to stay
in black market? Yeah, because it's easier. <i> With so much money being made
in marijuana,</i> <i> they aren't about to
close up shop, either.</i> BILL: Right now,
the mission is basically serve the search warrant, seize all cannabis
and all the ill-gotten gains. <i> So the state
is going after them...</i> OFFICER:
Police! Search warrant! <i> ...and using a portion
of the tax revenues</i> <i> from legal sales
to bust many people</i> <i> who would love
to be paying taxes.</i> (dog barking) You'll spend more money locking
me up than I probably made. <i> While crackdowns from cops
are on the rise...</i> VAN ZELLER:
Today, you guys busted three
of these illegal dispensaries. How many more do you
think there are out there? Thousands, thousands. <i> ...robberies and break-ins
are rising, too.</i> <i> REPORTER: Armed and violent.</i> <i> Putting a gun to the neck
of an employee.</i> <i> Points the gun
right in her face.</i> <i> Grabbing several thousand
dollars' worth of cash</i> <i> out of the till.</i> I've had a robbery attempt where I had to fight
the guys off with a gun. I had people come
through the ceiling, come through the walls,
come through the doors. That's why you have
the surveillance cameras -here, as well?
-Yeah. Yeah. <i> REPORTER:
Suddenly, a man outside
rushes in and opens fire.</i> <i> One woman is killed.
A man is wounded.</i> I've been arm-robbed,
home-invaded, burglarized. Really? I've been tied up,
left naked, zip-tied. -No, really?
-Yeah. Oh, yeah. <i> VAN ZELLER:
What's crazy is that the chaos</i> <i> swirling around
these dispensaries</i> <i> is just one of many unintended
consequences of legalization.</i> <i> The legal supply chain
is competing</i> <i> with a parallel universe</i> <i> of black market growers
and distributors.</i> <i> So who are the players
making all of this money,</i> <i> and how are they
getting away with it?</i> <i> That's exactly
what I want to know.</i> ♪♪ <i> One of the hot spots
for growing marijuana</i> <i> is a place you'd least expect.</i> <i> The middle
of the Mojave Desert.</i> ♪♪ ♪♪ VAN ZELLER: How often
do you guys do these raids? RICH: Every week. We try and do between 3
and 12 search warrants a week. -Wow, that's a lot.
-RICH: Yeah. <i> Criminals can't grow it
fast enough</i> <i> to satisfy the high demand.</i> <i> Luckily for them,
marijuana is, well, a weed.</i> <i> With the right know-how, you
can grow it almost anywhere.</i> -VAN ZELLER: This is it?
-RICH: This is it. Okay.
This is it, guys. Just be careful,
slowly behind them. Yeah. RICH: Hit it. ♪♪ ♪♪ (pounding on door) OFFICER: Sheriff's department.
Search warrant. Demand entry. Sheriff's department.
Search warrant. RICH: Go ahead. Moving up. ♪♪ Clear the truck. OFFICER: Clear. Take it, go, go, go, go. Sheriff's department.
Search warrant. Going through the rear. ♪♪ Left center. VAN ZELLER: Wow.
This is a lot of plants. It smells.
Really strong smell. They're currently looking
for people they know that they are workers here, people actually
living in the trailer. RICH: No one here. VAN ZELLER: So you think
they knew you guys were coming? RICH: They may have seen us
as we were driving in. We'll count the plants, we'll
go in and cut them all down and load them up in our trailer, and then we're
on to the next one. And this is
your typical day on the job. This is a typical day. Yeah, we do this
all day every day. <i> Growing weed
used to be a felony.</i> <i> It's now a misdemeanor
with just a $500 fine.</i> <i> If you were risking it
before legalization,</i> <i> there's less cause for concern
now than ever before.</i> Six gardens in this --
just this location alone. A street value of around
half a million dollars. <i> It's created a new
Wild West green rush</i> <i> for the 21st century.</i> ♪<i> Give me that money,
g-g-give me that money</i> ♪ <i> VAN ZELLER:
And everyone is scrambling</i> <i> to get a piece of the pie.</i> SHERIFF: If you're successful
at your marijuana grow, you stand to profit
quite handsomely. ♪<i> Give me that money,
g-g-give me that money</i> ♪ <i> VAN ZELLER: The underground
supply chain works like this --</i> <i> growers from all over the state
cultivate weed</i> <i> for three to four months,</i> <i> then it's harvested
and brought to the market,</i> <i> where sellers meet buyers.</i> ♪♪ ♪♪ VAN ZELLER: We've been given
a GPS location where we're going to
meet some people. We don't have a lot
of information. Still not sure what
we'll be given access to. <i> I'm heading to the weed
cultivation epicenter</i> <i> in Northern California,</i> <i> an area that retains
bragging rights</i> <i> for growing some of
the world's best bud.</i> This is like such an idyllic,
beautiful place, right? Not where you'd expect
illegal stuff to be happening. Or maybe it is
the perfect place, actually. <i> Out in these remote hills,
it's anyone's guess</i> <i> what's waiting
at the end of the road.</i> ♪♪ Okay, so, now we just stop here and wait for somebody
to come and pick us up. ♪♪ ♪♪ ♪♪ <i> VAN ZELLER: I've been in this
situation a lot over the years,</i> <i> heading to meet a contact...</i> It's a pretty secluded spot. <i> ...with no idea
what I'm walking into.</i> Check this out. It says,
"Smile, you're on camera." <i> Whoever is at the end
of the road</i> <i> -tends to be packing heat...</i>
-Is it here? <i> ...escorted by
an armed entourage</i> <i> and generally suspicious
of our intentions.</i> I think this is our guy. Hi. Nice to meet you, too.
Thanks for having us. <i> But the big boss man
waiting for me</i> <i> defies all these expectations.</i> BUDDY: Welcome.
Come on in. VAN ZELLER:
So this is your property. -It's beautiful.
-BUDDY: It sure is. I'm lucky. <i> Buddy kicks off the grand tour.</i> <i> And at first glance,
it hits every stoner cliché</i> <i> you could think of --
chill vibe, eccentric art,</i> <i> and, of course,
a true love of the ganja.</i> I have been growing my whole
life since I was a teenager. You know, selling pot in
high school, eighths and stuff. But taken it seriously
for the last 12 years. Has anyone ever told you
that you look exactly like a younger version of The Dude
from<i> The Big Lebowski?</i> BUDDY:
My whole entire life, yes. <i> First off, there's his grow,
inside the garage...</i> I have 148 plants,
$360,000, I think. VAN ZELLER: $360,000 a year, if you're lucky,
just from this room alone? BUDDY: Just from this room. <i> ...and out in the backyard.</i> VAN ZELLER: Oh, wow. BUDDY: Yep. There's a vibration, there's
a frequency that we create that the plants receive. I tell all my employees
that every tickle's a nickel. Touch as many branches
as you can. Every time you touch them,
you send them positive vibes, and that makes more money
off of that plant. VAN ZELLER:
Every tickle is a nickel. <i> Legalization was supposed to
grant outlaw growers like Buddy</i> <i> a five-year grace period
to establish themselves</i> <i> before big companies
could get licensed.</i> Were you excited
when you found out that it was going to be
legalized? BUDDY: Not at all.
I did not want it to be legal. VAN ZELLER: Why not? BUDDY: It wasn't
protecting people like me. <i> But the regulations
undercut this with a loophole</i> <i> allowing single growers
to obtain multiple permits.</i> Big business came right in,
bought up tons of property, and really
took over the industry. <i> Smaller growers
couldn't compete at that scale,</i> <i> so only a tiny fraction</i> <i> of the estimated 60,000
outlaw growers like Buddy</i> <i> has gone legal.</i> We were all upset at
the way the law was written. We saw that it was just
a corporate takeover. I spent $60,000
on lawyers and permits only to find out
there's more permits and more hoops to jump through,
which they didn't explain. So the police
could come in here right now, and you would have no warning
that they were coming. BUDDY: Exactly. -Have they done that to you?
-BUDDY: Oh, yeah. I got raided on a 100-acre
property that I was expanding. Lost a quarter-million dollars.
I lost 60 pounds of pot. I've lost 5 pounds at a time.
10 pounds here. Hasn't that made you think that, "Maybe I should continue
trying to become legal"? BUDDY: Not really.
I pay my taxes. I don't just -- I just
don't pay it to the IRS. (singing indistinctly) ♪<i> Do not care what you do</i> ♪ ♪<i> But you better know
who you know</i> ♪ ♪<i> I go for mine,
don't waste no time</i> ♪ ♪<i> And I ain't never stoppin'</i> ♪ ♪<i> I got moves to make,
and I'm bad, yeah</i> ♪ <i> VAN ZELLER: That night,
Buddy introduces me</i> <i> to a couple of his
fellow outlaw growers.</i> -VAN ZELLER: K. Pete.
-MAN: Pete. Pete. Buddy Powers, you have
a different mask situation on. so I could barely recognize you. <i> Unlike Buddy, K and Pete</i> <i> didn't bother dealing with
the legalization process.</i> What do you guys think
would happen to you if you weren't wearing masks, if you just did
this interview openly? BUDDY: Sheriffs. (laughs) They'd come down on us. They would come down
on you guys? BUDDY: Exactly. ♪<i> I'm back in the groove, in the
ride till the wheels fall off</i> ♪ <i> VAN ZELLER:
These outlaws aren't part</i> <i> of any organized
criminal group.</i> <i> They're mostly
independent farmers</i> <i> who've built relationships
over the years</i> <i> with underground operators
up the supply chain.</i> This isn't just, like,
throw some seeds on the ground and you have $10 million
and never work again. It's not like that. You know,
there's a whole bunch of pieces. What about the licensed growers
or licensed operations? BUDDY:
They're paying their taxes, creating a legal business. But their farm is going to
sell crap to the legal market, and they're gonna sell
all their good stuff out the back door to us. <i> That's right --
In his experience,</i> <i> those few thousand growers
who managed to get licensed,</i> <i> nearly all of them are still
operating in the black market.</i> So their quality stuff
they're selling the back door. Why are they doing that? BUDDY: Because they don't
want to pay taxes on it. VAN ZELLER: How many people in
the legal business of marijuana do you think are still
in the black market? BUDDY: Every farm I work with
that is legal sells to me. And I'm not legal. ♪♪ ♪♪ <i> Of the 60,000 estimated
outlaw growers like Buddy,</i> <i> only a tiny fraction
have managed to get licensed.</i> ♪<i> My heart</i> ♪ <i> VAN ZELLER:
Many others have dropped
out of the game entirely.</i> ♪<i> Rolls out to you</i> ♪ <i> VAN ZELLER:
With demand for weed higher
than it's ever been,</i> <i> dangerous criminals are
rushing in to fill the void.</i> Do you think there will
always be an illicit
side of this business? BUDDY: So, everything in life, there's always going to be
a shadow in the bright light. ♪<i> 'Cause I need you</i> ♪ <i> VAN ZELLER:
There's one group of growers</i> <i> making even more money,</i> <i> a group that few people
know about.</i> ♪<i> Oh, I need you</i> ♪ -YU: Good Morning
-VAN ZELLER: Good morning. So this is it, huh? YU: This is it. ♪<i> Whoa</i> ♪ The curtain here,
you're gonna leave it. And then behind that curtain,
you're going to put plywood. VAN ZELLER: So the neighbors
outside will see the curtains. But, in fact,
this is all hidden? YU: Correct. <i> VAN ZELLER: This could be
any family's dream home.</i> You have water sources
everywhere, so, you know, watering the plants with
the water pump and timer would be ideal. <i> But some buyers
have other intentions.</i> This is where the biggest grow
will take place. <i> Tom Yu is a former
gang detective with the LAPD.</i> <i> He's raided hundreds of homes
just like this one.</i> The biggest activities
of organized crimes is indoor marijuana grows. <i> Here in California's
pricy real-estate market,</i> <i> criminals are shopping for
homes exclusively to grow weed.</i> These groups of people,
they don't want attention. Their goal is to make money. And how much money can you make
from an indoor grow like this? $2 million or $3 million,
minimum. -VAN ZELLER: A year?
-Yeah. Wow. That's a lot of money. A lot of money, and the punishment
is virtually none. <i> Lessened penalties have
only emboldened growers</i> <i> to expand operations</i> <i> and, in return,
caused law enforcement</i> <i> to expand their crackdowns.</i> RICH: Well, we got several
complaints from neighbors about the smell
of the marijuana. Our guys went out there, heard the humming
from the equipment inside. So, you're pretty sure that there's an indoor
marijuana grow in there? Yeah, my guys,
they're very rarely wrong. And in terms of the approach, anything we should
be cautious about? Grows have been getting
hit with a lot of
home-invasion robberies. So a lot of the growers have
started to arm themselves. So, we always keep
in the back of our mind that these guys
could open fire, so... VAN ZELLER:
Hence the body armor? Hence the body armor. <i> This is police body-cam footage</i> <i> of officers executing
a search warrant</i> <i> on a suspected grow house</i> <i> in San Bernardino County,
outside L.A.,</i> <i> one example
of many, many others.</i> OFFICER: Police!
Stay where you are! Police! <i> All across California,
authorities are busting</i> <i> multimillion-dollar
marijuana grows...</i> <i> REPORTER: Hundreds of plants,
rooms are now greenhouses.</i> <i> VAN ZELLER:
...right in the middle of
residential neighborhoods.</i> On this street alone,
the sheriff's department identified seven problem houses. What the community
don't want to do is have a bunch
of indoor marijuana grow in a community
where their kids play outside. They attract robberies,
assaults. YU: We've seen murders,
we've seen kidnappings arising from these type
of indoor grows. <i> An average pot grow house</i> <i> draws an enormous amount
of electricity...</i> <i> REPORTER:
Holes drilled in walls for
impromptu electrical wiring</i> <i> and a bypass circuit breaker.</i> <i> VAN ZELLER: ...enough
to rack up an electric bill</i> <i> costing almost $100,000 a year.</i> <i> But these criminal groups have
a workaround for that, too.</i> <i> Using makeshift wiring,</i> <i> they bypass
the home's electric meter,</i> <i> allowing them to draw power
without being charged</i> <i> and, more importantly,
without drawing attention.</i> They're paying less power here than what would be
in an apartment. <i> But even more surprising</i> <i> is who's growing all
of this illegal weed.</i> OFFICER: We have
two Asian suspects in custody. They're both from China. <i> Since legalization,</i> <i> the authorities have continued
busting scores of grow houses</i> <i> operated by Chinese syndicates.</i> <i> REPORTER: Officers arrested two
Chinese nationals at the home.</i> I would say 99.9%
of all indoor grows are Chinese nationals
or criminal enterprises. <i> REPORTER: The story
involving drugs, guns,</i> <i> millions of dollars,
and a rocket launcher.</i> We've seen everything
from an AR-15 to AK-47s to your traditional semiautomatic,
you know, handguns. <i> VAN ZELLER:
They fly the workers over,</i> <i> put them up
in a newly purchased home,</i> <i> and task them with growing weed
until their debt is paid off.</i> RICH: They're working off
almost indentured servitude. <i> VAN ZELLER: And when the people
at the bottom are busted,</i> <i> the top dogs simply
move on to the next one.</i> YU: Unfortunately,
90% of apprehensions do not involve
the people on top. They're insulated. Do you think these places
will keep popping up? YU: 100%. Your demand is higher in a post-legalized
marijuana world. So where does supply come from? It comes from dispensaries
or these type of engagements. VAN ZELLER:
The criminal underworld. YU: Correct. <i> Although the Chinese gangs
are big players,</i> <i> I want to see how
the biggest ones operate.</i> <i> I'm told the biggest
black-market growers</i> <i> are also not from
the United States.</i> <i> They are the Mexican cartels,</i> <i> and they're growing
in our national forests.</i> <i> You may think
of the Mexican cartels</i> <i> as smuggling weed
over the border.</i> <i> The truth is, they're
planting it right here</i> <i> in American soil.</i> <i> Ironically,
legalization has created</i> <i> a kind of safe haven for them
to operate in California.</i> <i> We're heading to an area
where cops are finding</i> <i> a lot of cartel grows, where
land is free and abundant.</i> <i> Our national forests.</i> ♪<i> When you are near me</i> ♪ They're literally
just picking up and dropping two guys at a time
into the field, into the mountains there. ♪<i> I'm trembling so</i> ♪ ♪<i> I feel...</i> ♪ <i> VAN ZELLER: Nowadays,
if you head out for a hike,</i> <i> you might just wander into</i> <i> a multimillion-dollar
drug operation.</i> OFFICER: Drugs. (speaking indistinctly) RICH: Yeah. People don't bring their kids
out here anymore because they ran into
cartel members with guns and they just were fearful
for their safety. VAN ZELLER: Oh, wow! RICH: So, with all these plants
standing up under this cover, it's pretty much
a little forest in here. VAN ZELLER: And who's coming
out here and growing this? RICH: All of the forest grows
that I've encountered have all been Mexican nationals. I've never seen anyone
other than Mexican nationals in the forest. <i> It's estimated
that at least 40%</i> <i> of all of California's
black-market weed</i> <i> is growing on public lands
just like this.</i> So you see this
bottle right here, carbofuran. Skull and crossbones. This has been banned
in the United States because it's so toxic. <i> They leave in their wake</i> <i> a trail
of environmental damage,</i> <i> dead animals,
and toxic chemicals.</i> This is to stop the animals
from eating the plants -or destroying the grow?
-RICH: Yeah. Yeah. They'll mix that carbofuran
into the water supply. And it's so toxic that
about a quarter teaspoon will kill a black bear. So if we got a good dose
of that, we're gonna die. <i> Even with all this
stepped-up enforcement,</i> <i> the authorities are
only able to eradicate</i> <i> 20% of the state's harvest.</i> RICH:
This is a good vantage point to just look out over the valley and see all the different
marijuana grows. One there. One right there.
Another back there. VAN ZELLER: Oh, my God.
They're not even trying to hide. Are they dangerous?
Are they armed usually? RICH:
They are definitely armed. We've had hikers and hunters
get guns pulled on them. We've had people
get snatched up. <i> REPORTER: The raids have found
growers that are heavily armed.</i> <i> A game warden got shot through
both legs with an AK-47.</i> SOLDIER: Don't move.
Stay down! <i> Shocking twist in the murder</i> <i> of an El Dorado County
sheriff's deputy.</i> <i> VAN ZELLER: The massive amount
of product and cash</i> <i> being generated by these
operations has led to violence.</i> It's just getting
really concerning and scary. SHERIFF:
To say that the California laws
that have been passed are gonna be able to adequately
deal with this situation is a fallacy. <i> The profits from illegal weed
growing on our public lands</i> <i> is helping the cartels</i> <i> pay for all manner
of sinister operations.</i> The single-biggest source
of the money for the guys with the horrific violence along
the border on the Mexican side and on our side now
are making it from marijuana. ♪♪ ♪♪ ♪♪ <i> No matter if it's
Mexican cartels,</i> <i> Chinese home growers,
or outlaws like Buddy,</i> <i> the most dangerous part
of the game</i> <i> is the next link
in the supply chain...</i> <i> distribution...</i> <i> when millions of dollars
of product and cash</i> <i> are in the same location
at the same time.</i> ♪♪ ♪♪ VAN ZELLER: So do you think
they're catering for the weed businesses
around here? SARAH: Oh, for sure. The distro that I work out of,
there's people selling hundreds of pounds a day
in that one location. <i> I'm meeting a contact
in an area that she says</i> <i> is the distribution epicenter
of the state's</i> <i> multibillion-dollar
black market.</i> <i> Ironically, these few blocks
in downtown L.A.</i> <i> where it all goes down</i> <i> is just around the corner
from the Hall of Justice.</i> People that I meet
all the time in the business are telling me that they
have distros downtown. <i> Sarah's what you call
a small fish.</i> <i> She works as a trimmer inside
distribution warehouses</i> <i> in this area,
some legal and some not,</i> <i> so we're hiding her identity.</i> We're going to meet George, who is a big player
in this industry. He has several distributions moving millions of dollars
a day of product. <i> That's right.
A million dollars a day.</i> <i> This is the big leagues.</i> <i> But even with so much
on the line,</i> <i> her contact has agreed,
reluctantly, to meet with me.</i> I know that you've been
trying to help us get
access to this world. How long have you been
trying to convince him? SARAH:
For about two months. VAN ZELLER:
Has George made any requests in terms of what we can
and cannot film? SARAH: Yeah,
a pre-mixed vocal changer. So not only does he want us to distort his voice
once this episode airs, he also wants to distort
his voice immediately. SARAH: Exactly. That's the first time we've
ever been asked to do that. SARAH: Yeah, people
are scared in this industry. ♪♪ VAN ZELLER: Okay. ♪♪ ♪♪ (birds chirping) (sirens wailing in distance) VAN ZELLER: This is sort of a
distribution center for weed? <i> I found my way inside a
distribution warehouse in L.A.</i> <i> in an area considered the heart
of the marijuana black market.</i> ♪♪ ♪♪ (elevator bell dings) ♪♪ <i> One of the big players
in that world,</i> <i> someone I'm told moves more</i> <i> than a million dollars' worth
of product daily,</i> <i> has agreed to meet me.</i> <i> Well, kind of.</i> -Okay. We ready?
-GEORGE (distorted voice): Yeah. VAN ZELLER: So I'm currently
in an empty room and in front of a table
with nine pounds of all sorts
of different kinds of weed. George, I'm just explaining
what's happening to the cameras 'cause it feels really weird
that it's just me here, -so I'm just explaining.
-GEORGE: Yeah. Yeah. <i> George didn't want
his actual voice recorded.</i> George is actually out of view. Didn't feel comfortable
being on-camera. But he can hear me
because of my mic. <i> So we're using a voice changer
that alters it while he speaks.</i> If I were a buyer,
I would come in here. You'd have all these bags out
here with the different samples. -They look at it, smell it.
-GEORGE: Yeah. Yeah. VAN ZELLER: Possibly try it.
Smoke it. And then they place orders.
Is that it? GEORGE: Yeah. <i> On the table is a variety</i> <i> of high-end, exotic,
indoor and outdoor weed.</i> <i> Each pound bag costs
between $2,000 and $4,000.</i> What's the largest order
you've ever received? GEORGE: I mean... <i> Just one order that size is
worth around a million dollars.</i> How much money is there
to be made in illegal weed? <i> I decide not to push it.</i> So, George, you operate just
a black-market business, or do you operate also
a legal business? A licensed, as well. If you were to give me
a general sense of how much money you make
with your legal versus your illegal business,
what would you say? (George clears throat) Wow. So why operate a legal business if you're not even
making money out of that? You know, you don't
feel comfortable with even being
in the same room. Why do you think there is
so much fear and mistrust? Do you carry a gun? ♪♪ ♪♪ Okay.
So I think we're close, guys. Getting people to talk to us
has been insanely hard, but we got sent a location
somewhere downtown where we're going to
meet with someone. Not entirely sure who yet. <i> Unlike George, who operates
on both sides of the law,</i> <i> I'm told that this new contact
runs a distribution warehouse</i> <i> that is 100% illegal.</i> <i> It's known as a trap house,</i> <i> and it's just
a few blocks away.</i> Oh, here. Is it here? <i> But the only other information
I'm given</i> <i> is where to meet him.</i> Kind of looks like a --
just a parking structure. ♪♪ ♪♪ <i> At first glance, there's
nothing out of the ordinary.</i> Are we sure this
is the right place? <i> Once we reach the top,
I can't believe my eyes.</i> ♪♪ (sirens wailing in distance) (horn honks) (wailing continues) (helicopter blades whirring) (horn honks) <i> I'm meeting a contact</i> <i> who supposedly operates
a trap house,</i> <i> selling bulk purchases
in the weed black market.</i> VAN ZELLER:
This is very strange. <i> It turns out this location is
more than just a meeting point.</i> They're looking at us. I would put cameras down. <i> It's the trap house itself.</i> Hi. How are you?
Mariana. Nice to meet you. (indistinct talking) ♪♪ <i> Right there, at the top
of this random parking garage</i> <i> in downtown L.A.,</i> <i> they're dealing millions of
dollars' worth of illegal weed.</i> CASPER: You're more beautiful
than I thought. Oh, thank you. You're making me blush
right off the bat. CASPER: I might have to
ask you out on a date. Depends on how
you answer my questions. -CASPER: Oh, okay, okay.
-Wait, so this is your place? CASPER: Uh, maybe. <i> Their operation
is so brazenly out in the open</i> <i> that I'm amazed
they can pull it off.</i> So, yo, why are you doing this,
though, for real? VAN ZELLER: Why am I doing this? CASPER: Yeah.
And are you the cops? VAN ZELLER:
No, I am not the cops. CASPER: Are you DEA? VAN ZELLER: No, I'm not DEA. <i> But as we talk,</i> <i> they lay out the upside
to a location like this.</i> So you sell -- Is it sort of
a distribution center? CASPER: This business is
based on a black-market model. We're a trap. You know what I mean?
A glorified trap house. <i> It's kind of like
the Costco for weed.</i> <i> Ample parking, bulk purchases,
and lots of free samples.</i> VAN ZELLER:
So people come in here,
and that's what we're seeing is customers coming up here
and buying weed from you guys? CASPER: Yeah, they come in
and they donate their funds and capital. And they get to leave with some
great flowers and products. <i> Weed grown all over California</i> <i> by outlaws like Buddy,
the Mexican cartels,</i> <i> the Chinese syndicates,</i> <i> it all ends up moving through</i> <i> an underground distro
just like this.</i> VAN ZELLER:
How much money do you think
is made here every day? CASPER: Um, it pays the bills.
Pays the bills. VAN ZELLER:
I mean, it does more than
just pay the bills, I assume? CASPER: What would you say,
what we doing? MAN: $700,000 a week. $700,000 a week?
No. CASPER:
I mean, this is a billion-dollar
industry, so, you know, I'm just somebody getting
a little piece of the pie, you know, a little, small piece. <i> Their shelves
are stocked with bags</i> <i> of what looks like
brand-name marijuana,</i> <i> some of the same kinds
I've seen sold</i> <i> at legal dispensaries.</i> <i> We have no way to confirm.</i> <i> But they swear
it's the real deal.</i> <i> And if it is,
then buyers are getting</i> <i> some of the world's best weed</i> <i> without having to pay a cent
of those hefty taxes.</i> So the weed that you sell here,
where does it go to? CASPER: I really don't know. I don't ask any questions. VAN ZELLER: I mean,
if they're buying this amount, all these pounds, they're probably going
and reselling it, right? CASPER: Yeah, the black-market
businesses, that's what you do. You buy tennis shoes
at one price, and you flip it and sell it
for another price. <i> In the supply chain,</i> <i> think of it as the place
that dealers go</i> <i> to get their weed in bulk</i> <i> before selling it
to individual consumers.</i> Do you guys --
because we were able to pretty much just drive up. Do you have lookouts? Do you have people knowing
who comes in and out? CASPER: Yeah. I mean, there's
a strategic system in place. Is that your security guard
behind you? CASPER: No. VAN ZELLER: This guy
with the gun behind you? -CASPER: That's not a gun.
-VAN ZELLER: That's what? -CASPER: That's not a gun.
-VAN ZELLER: That's not a gun? -What is it?
-CASPER: I don't know. Okay. CASPER: I can be honest
with you, though. -Please.
-CASPER: I got things around. And there's a problem,
somebody's going to be attentive to it, for real. Got it. Okay.
I won't ask you again, then. CASPER: Aw, you're so sweet.
I knew you were sweet. I'm about to get that date,
I'm telling you. <i> I asked if I can
talk to any of the buyers,</i> <i> but he's not willing to risk
losing a potential client.</i> VAN ZELLER:
Would you want to be legalized? Would you want to run a
legal operation, if you could? Or do you prefer
the black market? CASPER: No, I'd rather go legal. VAN ZELLER: So, what do
you think would happen to you if you got caught? Why do you say
it's a risky business? CASPER: Because firepower. Hmm. Guns. CASPER: Right now, you know,
it's jungle rules. You know, the bigger dog wins. <i> Still, after seeing the massive
size of this operation,</i> <i> the question remains,
who's buying all of this weed?</i> <i> And where is it headed?</i> ♪♪ ♪♪ <i> I still have one question
that I need to answer.</i> <i> So I'm heading
to an old connection.</i> (siren wailing in distance) ♪♪ ♪♪ VAN ZELLER: So we're meeting
a guy I know here in L.A. that traffics guns
and fentanyl and meth and a bunch of other drugs. ♪♪ ♪♪ There's police everywhere. ♪♪ ♪♪ Dude, I can totally
smell it from here. (Juan laughs) -VAN ZELLER: Right?
-JUAN: Yes, ma'am. <i> I've been all over the state,</i> <i> working my way through
the supply chain.</i> <i> What I want to know is,
where is all this weed going?</i> VAN ZELLER:
So what do you have here, Juan? JUAN: Got a little bit
of crystal meth. Is that a pound? JUAN: Yeah.
It's about a pound right here. We got a little bit of
different kinds of marijuana. We got a little bit
of everything, you know. In the 10 years
that you've been in business, what's made you most money? JUAN: The marijuana. VAN ZELLER:
Where do you get it from? JUAN: Different sources.
Can't say. VAN ZELLER: But do you grow it,
or do you buy it? JUAN: Yeah, we buy it in bulk. And then you package it. -Is this your packaging?
-JUAN: Yes, ma'am. -And then you sell it.
-JUAN: Yeah. This right here
is about an ounce. VAN ZELLER: Ooh.
That's so intense. JUAN: Yes, this is
the good stuff right here. (knock on door) Oh, excuse me.
I got somebody, real quick. -Is it a client?
-JUAN: Yes. -Customer?
-JUAN: Yes, ma'am. -Come on in, guys.
-MAN: How are you, brother? JUAN: Pretty good. Pretty good. -VAN ZELLER: Hi. How are you?
-MAN: Alright. JUAN:
I hope you guys don't mind, I'm doing a little
documentary in here. But we good. We good. VAN ZELLER: Obviously,
you guys are covered already. MAN: It's that COVID.
We gotta be like this. MAN #2: Right. MAN: Oh, yeah. VAN ZELLER:
Do you guys live in L.A.? -MAN: Nah.
-Oh? Where? MAN: We live in
the south side Brooklyn. -VAN ZELLER: Where?
-MAN: South side of Brooklyn. -You're from New York?
-MAN: Hell, yeah. Did you come all the way
to California to buy weed? MAN: Hell, yeah. VAN ZELLER: You're serious? MAN: Yeah. ♪<i> Do-do-do-do-do-do-do</i> ♪ <i> ♪ Kisses left unkissed ♪</i> MAN: Light that up. <i> VAN ZELLER: In fact, up to 80%
of the weed grown in California</i> <i> ends up in the hands
and the lungs</i> <i> of consumers outside the state.</i> MAN: So what kind of questions
you wanted to ask me? VAN ZELLER:
So you're going to fly -- Do you fly or do you drive back? My mind is blown. So do you fly? -(laughs) You teleport?
-MAN: Teleport. VAN ZELLER: That means you don't
want to answer my question? MAN: That means we teleport. That's the weed talking
right here. MAN: Yeah. Yeah. Yeah. ♪<i> You held me tight</i> ♪ ♪<i> You felt desire</i> ♪ <i> VAN ZELLER: Transporting weed
over state lines is a felony.</i> MAN: Gotta risk it
to get the biscuit. You know what I'm saying? <i> Their preferred destinations?</i> JUAN: Here we go. <i> States where weed
is still illegal.</i> BUDDY: They'll end up close
to the East Coast or Midwest, Illinois, Wisconsin, Florida. <i> REPORTER: The drugs were found
inside a car</i> <i> being hauled cross-country
from California.</i> And it will go as far as
Flushing, New York, to Atlanta. <i> REPORTER: The drugs were
headed to New Jersey.</i> <i> VAN ZELLER: Where it sells for
double, even triple the price.</i> Where you're really
going to make your money is black market in other states. MAN: The marijuana in California
is about $1,000 a pound. Ships it, drives it,
sends it wherever it's illegal. MAN: Once you get to Alabama, the price may be
$3,500 per pound. <i> VAN ZELLER:
The way it's transported...</i> MAN: Every way
you can possibly think of. Air. Mail. Train. Bus. Mules. MAN #2: RVs.
We have people that put it in their luggage
on airplanes. Grandmas driving. I mean, literally, if there
was camels, it would be camels. <i> But I'm told if you're truly
a big player in the game,</i> <i> you're in
the trucking business.</i> ♪♪ <i> REPORTER:
Police unloaded 500 pounds</i> <i> of marijuana from a semi.</i> <i> REPORTER #2: 60 bags
piled high with marijuana.</i> <i> REPORTER #3: The drug-sniffing
dog pointed police</i> <i> to boxes of narcotics
in the trailer.</i> You put on a shirt, tie, put a little cross
in the rearview mirror. And if you get pulled over when you're driving pounds
of weed, you just go, "I know that God brought
you here for a reason. Do you believe in our Lord
and Savior Jesus Christ?" (horn honks) <i> VAN ZELLER: Since 2012,</i> <i> recreational marijuana
legalization</i> <i> continues to gain approval
at the ballot box,</i> <i> one state after another.</i> <i> If California
is any indication,</i> <i> get ready for some black market
grows in your forests</i> <i> and in the house next door.</i> <i> That is, if they
aren't there already.</i> BUDDY: We're all black market.
We always will be. <i> One thing seems certain.</i> <i> Until the U.S. decides
to legalize weed nationwide...</i> OFFICER: Sheriff's department!
Search warrant! <i> ...the outlaws
will have the upper hand.</i> MAN:
The black market will be here as long as the legal market
keeps screwing up. VAN ZELLER:
Did you think that legalization
was gonna change anything? I honestly thought that,
"Okay, that's it. The marijuana team's done. There won't be any
need for them anymore." OFFICER: Sheriff's department!
Search warrant! Search warrant.