Lecture Notes: The Huffhines Brothers and the Counterfeit THC Vape Operation

Introduction

• Main Characters: Tyler Huffhines and Jacob Huffhines, brothers from Wisconsin.
• Early Life: Tyler was entrepreneurial from a young age, involving himself in sneaker flipping, used cars, and stock market investments.

The New Venture

• THC Carts Discovery: Introduced by older brother Jacob, who had a history in drug dealing.
• Business Potential: The illicit THC cart market was booming with high demand.

Operation Setup

• Strategy:
  • Sourcing: Purchased empty vape cartridges and packaging from China.
  • Production: Filled them with THC liquid from California, often diluted with Vitamin E acetate to reduce costs.
• Location: Set up in their mother Courtney's real estate office in Union Grove, Wisconsin.

Expansion and Production

• Mentorship: Tyler learned manufacturing techniques from a Californian contact named Moo.
• Growth:
  • Invested $300,000 to secure THC oil.
  • Hired associates, initially paying hourly, later per cartridge.
• Output: 3,000 to 5,000 cartridges daily; over 2.9 million cartridges produced.

Legal Trouble

• Discovery: A parent's intervention led to police discovering Tyler's Snapchat advertising the operation.
• Investigation and Raids: Police traced back to three properties; significant evidence and products were seized.

Legal Consequences

• Fines and Probation:
  • Jacob fined $10,000 and given probation.
  • Courtney fined $115,000.
  • Tyler received no fine, only probation.
• Outcome: Despite the scale of the operation, the family avoided prison time.

Conclusion

• Impact: The Huffhines' operation was the largest illegal THC vape ring in the US.
• Legal Loopholes: Despite serious charges, minimal legal repercussions were faced.