Politically connected Oklahoma pot attorney charged again, this time in federal court

A politically connected attorney is accused in a federal indictment of conspiring with a Mandarin-speaking real estate broker in a "ghost-ownership scheme" that allowed foreigners and others to establish black-market marijuana farms in Oklahoma.

Both the attorney, Matt Stacy, and the broker, Chong Iu Phu, deny wrongdoing.

A grand jury indicted them April 2 in Oklahoma City federal court. The indictment was made public Wednesday.

Grand jurors alleged the two schemed to evade licensing requirements for medical marijuana grows and conceal the true owners. Medical marijuana grows are supposed to be at least 75% owned by Oklahoma residents.

Under the scheme, Stacy would find an Oklahoma resident to be listed as the grow owner or use an Oklahoma resident provided by his out-of-state client, according to the indictment. Other times, he would "make" his out-of-state client an Oklahoma resident, grand jurors alleged.

Who is Oklahoma real estate broker Chong lu Phu, and why was he indicted?

The broker, also known as Alex Phu, "aided and abetted marijuana traffickers in a variety of ways under the guise of professional services," grand jurors alleged. He listed his mother or father as the grow owner on several license applications.

"As one of the few Mandarin-speaking real estate agents in Oklahoma, Chong Iu Phu was uniquely situated to provide realty services to Mandarin-speaking foreign nationals and non-Oklahoma residents seeking to purchase property for their marijuana farms," grand jurors said.

Many of the residences owned by his companies have been identified during investigations as marijuana stash houses or the homes of black-market grow owners, according to the indictment. Services provided to growers included hiring armed security guards and finding contractors to do construction and other work.

More than 9,000 commercial grow licenses have been granted since Oklahoma voters approved medical marijuana in 2018. Grand jurors alleged many of these commercial grows were established fraudulently.

Also indicted was the broker's brother, Chanh Iu Phu, who also is known as Shawn Phu.

Indicted Oklahoma attorney Matt Stacy was already facing criminal charge

Stacy, 44, already faces a 2022 criminal charge accusing him of illegally finding straw owners for medical marijuana grows to get around the licensing requirements. That 34-count case is pending in Garvin County District Court.

Stacy served on Gov. Kevin Stitt's COVID-19 response team and became the hospital surge plan adviser. The attorney for a time was on the Governor’s Council on Science and Innovation.

Stacy donated $2,900 in 2021 to the governor's successful reelection campaign. After the attorney was charged in 2022, Stitt said he would be donating the contribution to charity.

Stacy ran as a Republican for the state Senate in 2016, but lost in the runoff election.

His defense attorney said Stacy looks forward to establishing his innocence and demonstrating he always worked for his clients within the bounds of law.

"For years, Mr. Stacy zealously represented his clients in a complex, inconsistent and ever-changing regulatory environment, and he regularly sought agency clarification for the very issues charged in this case," attorney Robert Goldstein said.

The attorney for Chong Phu, 47, called the allegations in the indictment "utterly baseless."

"My client is a successful Chinese-American business and family man who has called Oklahoma home since 1991," defense attorney Ed Blau said. "We look forward to our day in court."

The attorney for Chanh Phu, 41, called the indictment "further proof that any person of Asian descent in Oklahoma and working in the medical marijuana industry is a target by law enforcement."

Shawn has been in the community since 1991 and is a naturalized citizen, defense attorney Robert Don Gifford said.

Stacy and Chong Phu are charged together with one count of drug conspiracy. The attorney also faces a count of maintaining drug-involved premises.

Chong Phu and his brother are charged together in another drug conspiracy count. The broker also faces four counts of maintaining drug-involved premises.

Chanh Phu also faces a count of possession of marijuana with intent to distribute.

If found guilty, all three face up to life in federal prison, federal prosecutors said. Stacy is from Blanchard and the brothers live in Edmond, according to a news release.

The indictment arose from an investigation by an Organized Crime Drug Enforcement Task Force that targets the highest-level drug traffickers, according to the release.

Medical marijuana grows must be licensed through the Oklahoma Medical Marijuana Authority and registered with the Oklahoma Bureau of Narcotics and Dangerous Drugs Control.

Registrations for growers have dropped from 9,400 in 2021 to approximately 3,200 this year because of enforcement efforts, the narcotics bureau said.

The latest raid on a grow suspected of operating illegally came Thursday. Agents seized nearly 2,000 marijuana plants at Four Family Grow in Vinita and made two arrests, the narcotics bureau said.

This article originally appeared on Oklahoman: Politically connected attorney Matt Stacy indicted in OKC federal court