'Operation Candy Crush': TBI reports not 'properly written,' DA said

All charges in the controversial "Operation Candy Crush" sting have been dropped.

Operation Candy Crush, headed by the Rutherford County Sheriff's Office earlier this month, indicted the owners of 23 local stores accused of selling illegal hemp products.

►More: 'Operation Candy Crush': Rutherford County businesses closed, accused of selling CBD candy

Additionally, 19 store owners were hit with felony charges related to the sale of Schedule VI drugs.

Clash with TBI

"TBI is no longer willing to testify that this is a Schedule VI substance. We have no choice but to dismiss," District Attorney Jennings Jones said in an interview Wednesday.

Jones announced Wednesday morning that he had filed the motion to dismiss the case.

►More: 'Operation Candy Crush:' Legality of Rutherford County CBD raids is under question

Marijuana is illegal nationwide.

Industrial hemp, which must be properly licensed, is legal in Tennessee.

Thousands of dollars worth of items and cash were seized in the sting. Products labelled to contain the hemp-derivative CBD were sent to the Tennessee Bureau of Investigation for testing.

►More: 16 people to be arraigned Friday in 'Operation Candy Crush' roundup

The stores were padlocked for days before Judge Royce Taylor, who signed the initial warrants, dissolved the temporary injunction and allowed them to reopen last week.

►More: Stores reopen after 'Operation Candy Crush' hearing, but charges still active

"We were notified Friday that the DA is dropping the charges," one store owner, Stacey Hamilton, said Monday. "I'm elated and angry, very angry. From the moment I found out what they were doing, I knew I had committed no crime."

Results 'inconclusive'

The TBI determined that the products contained CBD, but were unable to determine the source of the material, and therefore whether or not it was legally-derived.

The DA released a statement Wednesday about the case that alleges the TBI backed off from initial statements based on lab reports, undermining the entire case.

Reports dating back to May 2017 indicate that TBI labs tested “candy products” containing cannabidiol, known as CBD. They are labeled in those reports as Schedule VI controlled substances

“That conclusion by the TBI meant that the substance the TBI lab detected on the candy products was prohibited under Title 39 of the Tennessee Criminal Code, which only exempts cannabidiol when used for medical and research purposes as provided for by the state,” the release from the DA’s shop showed.

Based on those conclusions, Jones’ report stated, the details were presented to the Rutherford County Grand Jury and Judge Royce Taylor in the circuit criminal court. They were presented as part of the petition to close the stores for being public nuisances.

Basis of all charges

However, those reports from the TBI are no longer supported.

“Chemists from the TBI have now informed my office that they cannot determine whether the cannabidiol detected on these products came from a hemp plant or marijuana plant,” the release said.

The TBI was unable to determine whether the CBD found was from legal or illegal substances. They were also unable to detect the amount of the psychoactive element THC in the items.

Those reports, now termed inconclusive, were the “foundations of all indictments and nuisance actions” in the case, Jones said.

All criminal charges will be dismissed and wiped from the records of storeowners, Jones said. All property seized is expected to be returned shortly.

Damage is done

"This has caused an enormous cost to all the store owners," Hamilton said. "I don't think they'll apologize in nearly as public a way as they condemned us as drug dealers."

►More: Operation Candy Crush: Businesses to reopen, judge said

Throughout the legal proceedings, the store owners stayed in contact and refused to look at any potential plea deals, according to Hamilton.

"The Sheriff’s Office was acting on orders of the court," RCSO spokesperson Lisa Marchesoni said in an email. "When an indictment or court order comes to the Sheriff’s Office, we are required to serve the documents."

Many of them had never even met before the indictments were handed down.

"The damage is done, but 19 small business owners stood together in solidarity and I'm extremely proud of that," Hamilton said.

More: CBD raids: 'Operation Candy Crush' owners sticking together, insisting on innocence

"I didn't do anything wrong, I try to do everything right," Last Stop Market owner Michael Zackaria said. "I don't think this will change the reality. Something needs to be corrected."

Store owners have indicated they plan to file civil suits related to the indictments and injunctions.

Reach Mariah Timms at mtimms@dnj.com or 615-278-5164 and on Twitter @MariahTimms.