SAN JOSE — Police found more than 70 pounds of illegal cannabis products and 40 pounds of psilocybin mushrooms at four smoke shops across the city, resulting in the arrests of five men and pending citations to the owners of the businesses and properties, authorities said.
The investigation was sparked by a tip from the community reporting illegal cannabis sales at a smoke shop, said SJPD Chief Paul Joseph at a news conference Monday.
“These businesses weren’t just bending the rules, they were breaking them outright,” Joseph said. “What we found inside wasn’t minor. This wasn’t a little extra on the side. This was large-scale, illegal sales of cannabis products — unregulated, untaxed and unsafe.”
On Wednesday, officers conducted search warrants at four smoke shops — Grizzly’s Smoke Shop, E. Side Smoke Shop, JT’s Smoke Shop and McKee Smoke Shop, according to a press release. Undercover officers went to the smoke shops to attempt purchases of the illegal items, Joseph said.
Officers confiscated 74 pounds of cannabis products, 40 pounds of psilocybin mushrooms and 426 canisters of nitrous oxide, authorities said. They also found a firearm and $11,000.
“Let’s be clear, these were not your typical corner stores. They were selling illegal drugs and keeping a loaded gun on hand,” said San Jose Mayor Matt Mahan at the press conference. “San Jose celebrates its small businesses, but when a business is a front for crime, peddling illegal substances and threatening neighborhood safety, we will take decisive action.”
Five suspects were arrested during the operation, with two booked into Santa Clara County Main Jail on suspicion of drug-related crimes and three given citations, authorities said.
“That’s not just a code violation,” Joseph said. “That’s a criminal operation, and when drugs and weapons start mixing in a business model that deliberately bypasses regulation, the risk to the public is real and immediate.”
San Jose’s code enforcement department is also going to each location to document violatons and incur penalties, which could be up to $10,000 for business owners and property owners, Joseph said. The stores currently remain open but will be subject to followup administrative investigations by code enforcement, Joseph said.
Mahan said that deaths in the United States due to nitrous oxide have more than doubled since 2019. Four percent of eighth graders reported trying inhalants like nitrous oxide in a survey conducted last year, he added.
Nitrous oxide is a gas — commonly used to charge cans of whipped cream, or as an anesthetic in dental surgery — that some use to attain a short high by inhaling the gas directly. It can cause brain damage if abused.
“It’s among one of the most misused and accessible inhalants, driven by its low cost, easy access from unscrupulous small businesses and even kid-friendly marketing,” Mahan said. “This is why we take these cases seriously. Lives, especially our children’s lives, depend on keeping these substances off our streets.”
San Jose City Councilmember Peter Ortiz said that he has been pushing for a moratorium on new smoke shops in the city and stricter regulations for exisiting smoke shops. He added that San Jose’s East side has a high number of smoke shops.
“We must protect our youth, hold bad actors accountable and keep our neighborhoods safe,” Ortiz said.
The operation included collaboration from SJPD special operations officers, code enforcement and the division of cannabis regulation, as well as officers from the downtown services unit, the metro unit, the street crimes unit and the violent crimes enforcement team, Joseph said.
“Our message to anyone operating outside of the law is clear,” Joseph said. “If you sell illegal drugs under the cover of a retail counter, we will find you. If you think a smoke shop sign makes you untouchable, it doesn’t. And if you profit from endangering our neighborhoods, expect a knock on your door from the San Jose Police Department.”