One seldom charged, but nevertheless existent, offense under the Texas Health and Safety Code (aka, where the drug offenses are) is for the “illegal barter, expenditure, or investment,” of funds for, or derived from, the sale of marijuana and other drugs. THSC s481.126. By “investing in drugs” I mean investing in the sale of, purchase of, manufacture of, or transport of drugs. Because “investing” in marijuana carries a different punishment than “investing” in methamphetamine or heroin, both are treated separately below. Suffice it to say, however, “investing” in either is very, very bad idea.
Investing in Marijuana
A person commits the offense of “illegal investment” if the person (1) barters property or finances or invests funds (2) that the person knows or believes are (3) intended to further the commission of an offense under THSC 481.121(a) [possession of marijuana] (4) that is punishable under THSC 481.121(b)(5) [possession of marijuana in amount greater than 50 pounds but 2,000 pounds or less.] So, in plain English, if a person invests in the purchase, sale, or distribution of an amount of pot greater than 50 pounds but 2,000 pounds of less, the person has committed “illegal investment.”
Because “invest” is not defined in the Texas Health and Safety Code, “invest” is interpreted according to its natural, ordinary, and familiar meaning. Texas courts have defined “invest” to mean “committing money in order to earn a financial return.” Jordan v. State, 816 S.W.2d 89 (Tex.Crim.App. 1991)(en banc). Arranging to purchase marijuana is certainly “investing” in it. Purchasing materials to cultivate a large quantity of marijuana could likewise be “investing” in it. Cultivating marijuana would certainly be “investing” in it. The “illegal investment” statute seems designed to punish people involved in the sale, transport, and cultivation of marijuana, as opposed to mere possession of the same.
As such, “illegal investment” applies to large quantities of marijuana—more than 50 pounds but 2,000 pounds or less. To give you an idea, if a Tom arranges to buy 125 pounds of marijuana for $40,000 from (people whom Tom does not know are undercover officers), Tom could be charged with illegal investment under 481.126.
Possession of this much marijuana is a second degree felony. Illegal investment or expenditure of funds in the purchase or sale of 50 to 2,000 pounds of marijuana is, itself, a second degree felony. s481.126(a)(2) and s481.126(a)(4). So why might a person be charged with illegal investment as opposed to possession? Because illegal investment does not require that the person actually receive the contraband. Id.; $21,180 v. State, 865 S.W.2d 181, 186 (Tex.App.—Corpus Christi 1993, writ denied). Instead, only an “intent to invest” is required. Rezapour v. State, 817 S.W.2d 67, 69 (Tex.Crim.App. 1991). It’s easier.
Investing in Other Drugs
It should be noted that “illegal investment” applies to other drugs—methamphetamine, heroin, etc.—as well. S481.126(a)(1) and s481.126(a)(3). In such instances, if a person barters property, expends funds the person knows are derived from the commission of a drug offense punishable by a term of life, then the person could face a first degree felony “illegal investment” charge. So, the short version: if you expend or invest in the commission of a drug offense that would carry a punishment of life in prison, you—as the investor—could face 5-99 years in prison yourself. For example, where Luster arranged to buy phenylacetic acid (the main precursor in the manufacture of methamphetamine), other precursor chemicals (ether, sodium acetate, and methylamine), and some lab equipment, he could properly be charged with first degree felony “illegal investing” in the offense of aggravate manufacture of methamphetamine in an amount more than 200 grams (an offense punishable by life in prison.) Ex parte Luster, 846S.W.2d928 (Tex.App.—Fort Worth 1993, discretionary review refused).
So, while investing in the drug trade might pay better than the stock market, it’s clearly the riskier proposition and is absolutely illegal.