Various local and federal law enforcement agencies have converged on the Lazy Lion “smoke club” in Colorado Springs’ Knob Hill neighborhood. Crews at the scene say the El Paso County Sheriff’s Office is there, along with the FBI and IRS. A search warrant is being executed and is part of what officials are calling an “ongoing investigation.”
A News 5 investigation in late 2014 discovered money changing hands in exchange for marijuana. The club says its members were simply reimbursing the club. Law enforcement said at the time that whether it was a direct sale or reimbursement, it didn’t matter in the eyes of the law. In December of 2014, police said they were investigating the club.
Since our investigation, the Lazy Lion’s attorney has told News 5 that he’s seen the reimbursement model hold up in court. He called it a loophole in the law.
This is a developing story and will be updated as more information becomes available.