NEWPORT NEWS, Va. — Virginia state Sen. Lillie Louise Lucas and six other defendants have been charged in an eight-count federal indictment alleging a racketeering conspiracy involving marijuana trafficking, money laundering, bribery and other crimes, officials stated Thursday.
According to the indictment, Lucas, 82, of Portsmouth, allegedly led a criminal organization prosecutors called the “Lucas Enterprise,” consisting of family members and close associates, including her two daughters and a grandson.
Federal prosecutors allege Lucas directed the enterprise’s activities, including arranging the acquisition and distribution of at least 100 kilograms of marijuana and overseeing the laundering of proceeds from marijuana sales.
The indictment also alleges offenses involving honest services fraud through bribery, maintaining drug-involved premises, possession of firearms in furtherance of drug trafficking and wire fraud.
Defendants are presumed innocent unless proven guilty.
Prosecutors allege Lucas used political influence to protect enterprise
Lucas, first elected to the Virginia Senate in 1991, has served as the chamber’s president pro tempore since 2020. She also chairs the Senate Finance and Appropriations Committee, which oversees state budget matters, tax policy and government expenditures.
Prosecutors allege Lucas used her political position to shield the enterprise from criminal scrutiny and influence legislation that could benefit its business operations.
Family members allegedly involved in marijuana distribution
According to the indictment, Carlton Upton Jr., 54, of Chesapeake, became Lucas’ business partner in VA Freedom Life in 2019. The company operated The CBD Shoppe and The Cannabis Outlet.
Upton managed The CBD Shoppe and allegedly worked with Lucas to obtain a recreational marijuana license that would benefit the enterprise.
In April 2020, Upton allegedly made materially false statements on an Economic Injury Disaster Loan application submitted on behalf of VA Freedom Life. The business subsequently received an $11,800 loan.
In 2021, Lucas and her daughter, Lisa Lucas-Burke, opened The Cannabis Outlet in Portsmouth.
Another daughter, Theresa Lucas-Lamb, and Lucas-Lamb’s son, Ryan Eichelberger, allegedly obtained marijuana, supervised its distribution and managed The Cannabis Outlet on behalf of the enterprise.
On Feb. 1, 2022, Lucas identified herself as president and CEO of VA Freedom Life on a statement of economic interests filed with the Virginia Conflict of Interest and Ethics Advisory Council.
Alleged $750,000 business deal and bribery scheme
In August 2022, Lucas allegedly paid $750,000 to acquire full ownership of a business serving as a holding company for a co-conspirator’s anticipated Virginia recreational marijuana license.
Prosecutors allege Lucas failed to disclose her ownership interest in the company on required financial disclosure forms.
According to the indictment, Lucas later met with the co-conspirator at her office in the state Capitol complex to receive a partial repayment.
She also allegedly discussed the co-conspirator’s eligibility for a recreational marijuana license with other government officials, including state legislators, while making her assistance contingent on receiving a bribe from the co-conspirator.
FBI searches uncover marijuana and firearms
On May 6, FBI agents executed federal search warrants at The Cannabis Outlet and The CBD Shoppe.
Agents recovered marijuana and firearms at both locations, according to federal authorities.
The indictment charges seven defendants in connection with the alleged criminal enterprise.
An indictment is an accusation, not a finding of guilt. All defendants are presumed innocent unless and until proven guilty in court.