Federal agents began investigating Sparky Rose in 2005, after the Los Angeles Police Department raided a West Hollywood medical marijuana dispensary called the “Yellow House” that he was running as part of the “Compassionate Caregivers” chain. Rose then went on to become the director of “New Remedies Cooperative” in San Francisco, which was raided by the Drug Enforcement Administration in October 2006. After searching the dispensary and various associated grow sites, agents reported seizing $125,000 in cash and thousands of marijuana plants. Calling Rose “a major statewide pot supplier,” the U.S. Attorney charged him with various counts for the manufacture and distribution of marijuana. He was also charged with money laundering, based on the government’s accusation that he laundered over $3 million from marijuana proceeds in order to supply himself with a $9600/week salary and various luxury items such as a Porsche convertible. Rose maintained that these calculations were grossly inaccurate and denied that he and his employees were profiteering from medical marijuana. However, Rose eventually accepted a plea deal and, in March 2008, was sentenced to 37 months.  He served his time in the prison camp at Lompoc, California, and was released to a Los Angeles area halfway house in August 2009. 

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