Onalaska Couple Accused of Running Large Pot Growing Operation Pleads Not Guilty

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An Onalaska couple accused of running a large-scale marijuana growing operation pleaded not guilty at a hearing Thursday in Lewis County Superior Court.

James and LaVeta Arnold are charged with manufacturing marijuana in a school zone, possessing marijuana with the intent to deliver in a school zone and money laundering.

Trials are scheduled for the week of May 4.

The couple is out of custody on bail and had a number of supporters at the hearing Thursday. The Arnolds and their supporters declined to comment when approached by The Chronicle after the hearing.

Hunt set bail last week at $25,000 for James Arnold, 55, and $10,000 for LaVeta Arnold. Both were bailed out of the Lewis County Jail on Feb. 11.

The investigation into the “elaborate indoor clandestine” operation was conducted over several months by the Centralia Anti-Crime Team and the Lewis County Sheriff’s Office. A search warrant for controlled substances in the 200 block of Griel Road in Onalaska was served on Feb. 5, according to a press release from the Centralia Police Department.

Officers found and seized about 614 pot plants and more than 40 pounds of processed and packaged pot with a street value between $2,000 and $2,200 per pound.

According to court documents, James Arnold was located at the residence and his wife was located nearby at the time of the search warrant. They admitted to growing pot for more than 15 years for personal medical marijuana use. However, during the last five years, they allegedly told officers they had been selling it for a profit of about $136,000 yearly.

A total of 33 firearms, including hunting rifles, assault rifles and handguns and ammunition, were seized by officers. The Arnold’s home den had about 30 taxidermied animals heads, which officers seized.

Six vehicles — a 2006 Harley Davidson motorcycle, a 2014 Ford F350 pickup, a 1948 Ford F-150 hotrod pickup, a 1937 Chevrolet hotrod passenger car and a 1968 Chevrolet Corvette — were located at a bodyshop in Onalaska and appear to have been purchased with proceeds from the operation. They were seized.

James Arnold admitted to financing multiple trips to hunt exotic game in Africa and purchasing all or part of the six vehicles with drug money.

Personal records, computers, banking information, growing equipment, some personal property and cellphones were also seized.

James Arnold is also the vice president of the medical marijuana dispensary Urban Medicinals, with locations in Olympia and Tacoma. According to court documents, he admitted to financing the pot growing operation with thousands of dollars from his legitimate business, Alpha Marine Installations.

Law enforcement officials arranged to continue conversations about the investigation and allow the Arnolds to live at their home. However, the Arnolds failed to continue talks with authorities and officers learned the couple was warning others about law enforcement being involved. The couple was also allegedly making plans to flee. After authorities got another search warrant, the couple was arrested and booked into the Lewis County Jail on Feb. 10.

According to Centralia police, the case is also being referred to the Internal Revenue Service for possible investigation of tax fraud or business tax evasion.

Manufacturing marijuana in a school zone and possession of marijuana with intent to deliver in a school zone both have maximum penalties of five years imprisonment. Money laundering carries a maximum sentence of 10 years imprisonment.