Federal Indictment Alleges Sen. Louise Lucas Used Public Office to Protect Marijuana Enterprise

Virginia — Virginia state Sen. Lillie Louise Lucas has been indicted on allegations that she led a criminal marijuana distribution enterprise involving relatives and business associates and used her legislative position to protect its operations and pursue financial benefits.

The Justice Department announced the eight-count indictment against seven defendants on October 22. The charges involve an alleged racketeering conspiracy, marijuana distribution, money laundering, honest services fraud through bribery, maintaining drug-involved premises, possession of firearms in furtherance of drug trafficking, and wire fraud.

The announcement describes several defendants’ alleged roles but does not provide a complete defendant-by-defendant breakdown of the charges.

Lucas, 82, of Portsmouth, allegedly approved and directed the enterprise’s activities, including arranging the acquisition and distribution of at least 100 kilograms of marijuana and supervising the laundering of marijuana proceeds. FBI Director Kash Patel described the alleged conduct as a five-year scheme worth an estimated $4.5 million.

The charges are allegations. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in court.

Prosecutors allege political influence protected the business

Lucas was elected to the Virginia Senate in 1991 and has served as president pro tempore since 2020, according to the release. She also chairs the Senate Finance and Appropriations Committee, which handles the state budget, tax policy and state expenditures.

Prosecutors allege she used that authority to shield what they call the “Lucas Enterprise” from criminal scrutiny and influence legislation benefiting its operations.

Attorney General Todd Blanche said the allegations concern a public official placing her financial interests ahead of the people she represents. First Assistant U.S. Attorney Theophani K. Stamos said the case alleges that Lucas exploited access and influence to facilitate drug trafficking and other offenses.

Family members and business associates allegedly managed operations

According to the release, Lucas’ business relationship with Carlton Upton Jr., 54, of Chesapeake, involved VA Freedom Life, an umbrella business for The CBD Shoppe and The Cannabis Outlet, beginning in 2019.

Upton managed The CBD Shoppe and allegedly worked with Lucas to obtain a recreational marijuana license that would benefit the enterprise.

In 2021, Lucas and her daughter, Lisa Lucas-Burke, opened The Cannabis Outlet in Portsmouth. Prosecutors allege another daughter, Theresa Lucas-Lamb, and Lucas-Lamb’s son, Ryan Eichelberger, acquired marijuana, supervised its distribution and managed the outlet.

Lucas identified herself as president and CEO of VA Freedom Life on her February 1, 2022, Statement of Economic Interests filed through Virginia’s legislative ethics disclosure process, according to the release.

$750,000 transaction central to licensing allegations

Prosecutors also described an August 2022 transaction in which Lucas allegedly paid $750,000 for full ownership of a business serving as a shell holding company for a co-conspirator’s expected Virginia recreational marijuana license.

Lucas allegedly failed to disclose that ownership interest on required Statements of Economic Interests.

The release further alleges that Lucas met with the co-conspirator at her office in the capitol complex to receive a partial repayment. She also allegedly discussed the co-conspirator’s qualification for a recreational marijuana license with other officials, including legislators, with her actions tied to receiving a bribery payment from that person.

The announcement does not identify the co-conspirator or specify the legislation Lucas allegedly sought to influence.

Disaster loan and firearms allegations

A separate allegation concerns an Economic Injury Disaster Loan application submitted by Upton in April 2020 for Virginia Freedom Life. Prosecutors allege that he made materially false attestations on the application, which resulted in an $11,800 loan.

The FBI executed federal search warrants at The Cannabis Outlet and The CBD Shoppe on May 6. Agents recovered marijuana and firearms at both locations, according to the release.

Assistant U.S. Attorneys Eric M. Hurt and Brian J. Samuels of the Eastern District of Virginia are prosecuting the case.

The supplied announcement includes no response from Lucas or the other defendants and does not identify a trial date.