Virginia Senator Louise Lucas, Six Others Indicted In Federal Cannabis Corruption Case

State Sen. Louise Lucas of Portsmouth, one of Virginia’s most powerful Democrats, was indicted on federal racketeering, marijuana distribution and money laundering conspiracy charges, with prosecutors alleging she used her legislative influence to protect and enrich a cannabis business she co-owns.

Lucas, 82, surrendered to authorities, U.S. Attorney General Todd Blanche said during a news conference in Norfolk Thursday. Six others, including family members and close associates, were also in custody in connection with the alleged scheme.

The eight-count indictment, unsealed Thursday morning, charges Lucas with racketeering conspiracy, conspiracy to distribute and possess with intent to distribute marijuana, money laundering conspiracy, conspiracy to commit honest services fraud, and maintaining drug-involved premises.

State Sen. Louise Lucas, D-Portsmouth, faces federal racketeering, marijuana distribution and money laundering conspiracy charges tied to a cannabis business she co-owns. Prosecutors allege she used her legislative influence to benefit the business.(Photo by Charlotte Rene Woods/Virignia Mercury)

The indictment also includes firearms and wire fraud charges against other defendants.

Lucas struck a defiant tone in a statement posted on X following her indictment, accusing federal authorities of trying to silence her.

“I grew up under Jim Crow. I’ve seen what happens when people in power try to silence those who stand up to them,” she wrote. “I spent my life fighting back, and I’m not stopping now. I will not be intimidated. I will not be bullied. And I will not back down.”

The unsealing of the charges against the longtime senator and outspoken critic of President Donald Trump comes 12 days before the midterm elections.

The investigation predates the Trump administration, but the timing is unusual because federal authorities have typically avoided overt investigative steps involving political figures so close to an election.

Lucas is not on the ballot this year but has ties to prominent Democrats who are.

“We’re here today because of facts and evidence, which led to this investigation to begin many years ago, and facts and evidence that led to the grand jury to indict Senator Lucas and her alleged co-conspirators,” Blanche said.

Prosecutors allege Lucas directed an organization they called the “Lucas Enterprise,” arranging the acquisition and distribution of at least 100 kilograms of marijuana and supervising the laundering of proceeds.

FBI Director Kash Patel said prosecutors believe Lucas and her associates accumulated nearly $5 million in proceeds from the alleged criminal enterprise over almost five years.

“The purpose of her enterprise included trafficking large quantities of illegal marijuana, creating generational wealth for members and associates of her criminal enterprise,” FBI Director Kash Patel said during the news conference.

Marijuana is legal to use recreationally in Virginia but not to sell. Earlier this year, lawmakers passed a legislative framework creating a recreational weed marketplace that is set to launch next summer.

Prosecutors also allege Lucas used her position as chair of the Senate Finance and Appropriations Committee to shield the operation from criminal scrutiny and influence legislation benefiting it.

Blanche on Thursday accused Lucas of betraying the public’s trust.

“Her first duty should have been looking out for her constituents before herself,” he said. “But the charges listed in the indictment reflect the alleged behavior of a public servant who put her own financial interests before the people she was elected to serve.”

Prosecutors outline business dealings

According to Blanche, Lucas’ associates included her daughters, Lisa Lucas-Burke and Theresa Lucas-Lamb, and her grandson, Ryan Eichelberger, as well as Carlton Upton Jr, Prince Albert William Hudson III and Tamika Johnson.

Lucas and Lucas-Burke opened The Cannabis Outlet in Portsmouth in 2021. Prosecutors allege Lucas-Lamb and Eichelberger acquired marijuana, supervised its distribution and managed the store for the enterprise.

Upton was Lucas’ business partner in VA Freedom Life, an umbrella for The CBD Shoppe and The Cannabis Outlet beginning in 2019, according to the press release.

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

Prosecutors also allege Upton made materially false statements on an April 2020 application for an Economic Injury Disaster Loan for Virginia Freedom Life. The loan was funded for $11,800.

Another allegation centers on a $750,000 payment Lucas allegedly made in August 2022 for full ownership of a business serving as a shell holding company for a co-conspirator’s expected Virginia recreational marijuana license.

Prosecutors allege Lucas failed to reveal that interest on required financial disclosure forms. They say she met with the co-conspirator at her Capitol complex office to receive a partial repayment and discussed the person’s qualification for a marijuana license with officials, including legislators, depending on her receipt of a bribery payment.

Lucas had identified herself as president and CEO of VA Freedom Life on a February 2022 Statement of Economic Interests, according to the release.

Patel said the alleged operation also involved “recycling drug proceeds to expand the operation that she launched and created, and steering marijuana licenses to entities in which members held financial interest.”

The case became public May 6, when federal agents searched Lucas’ Portsmouth legislative office and cannabis businesses. The Justice Department said agents recovered marijuana and firearms at The Cannabis Outlet and The CBD Shoppe.

At the scene, FBI spokeswoman Cassandra Temple told the Mercury: “We are conducting court-authorized law enforcement activity today.” She declined to answer additional questions.

Fox News, which first reported the operation, said staffers were ordered out of Lucas’ office while agents searched. Witnesses saw agents carrying boxes from the building. The network also reported that armed SWAT officers ordered people out of the adjacent Cannabis Outlet and that at least three people were handcuffed.

Lucas arrived after the operation began and told a reporter she did not know what it concerned.

Lucas has called the investigation intimidation

After the May searches, Lucas characterized the federal action as political intimidation, saying it was “about far more than one state senator” and reflected “a clear pattern from this administration.”

In a statement on X at the time, she linked the raid to the redistricting referendum voters approved in April, saying Virginians had voted to “stop Trump’s scheme to manipulate the 2026 midterm elections.” The Supreme Court of Virginia later overturned the referendum.

“I am not backing down, and I will keep fighting for the people of Portsmouth and the Commonwealth of Virginia,” she said.

Lucas has served in the Senate since 1992 and as president pro tempore since 2020. Her finance committee chairmanship gives her considerable influence over the state budget, taxes and spending.

Earlier this year, she pushed to end or scale back sales and use tax exemptions for data centers, arguing the incentives had become too costly and strained Virginia’s electric grid and infrastructure. Resistance from House Democrats and Gov. Abigail Spanberger contributed to a month-long intraparty budget impasse.

What the indictment means for Lucas’ role in the Senate and the upcoming legislative session remained unclear as of Thursday morning.

Senate Majority Leader Scott Surovell, D-Fairfax, urged restraint in responding to the charges against his Democratic colleague.

“The federal indictment unsealed this week contains serious allegations, and Senator Lucas is entitled to the same presumption of innocence that every American receives,” Surovell said in a statement.

“She is innocent until proven guilty in a court of law. I will not comment on the evidence in this case, and I urge others to show the same restraint.”

Lucas’ cannabis business had drawn scrutiny years before the federal searches. Lucas co-sponsored legislation legalizing simple marijuana possession in 2021, but that change did not establish a regulated recreational retail marketplace.

A 2022 Mercury investigation found labeling discrepancies and quantities of delta-9 THC that made two tested products from The Cannabis Outlet illegal to sell under Virginia law at the time.

One cereal bar contained substantially less total THC than its packaging advertised. The reporting examined broader concerns about unregulated cannabis products following legalization of possession. 

This is a breaking news story that will be updated as more information becomes available. 

By Markus Schmidt, Virginia Mercury

Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis with questions: info@virginiamercury.com.