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SALT LAKE CITY — The man prosecutors called “one of the most notorious marijuana traffickers in recent Utah history” and whose money drove other music promoters out of business was sentenced Wednesday to three years of probation.
The defendant, Gabriel Elstein, has already paid the U.S. government $10 million in forfeitures. That was, in part, so the government wouldn’t seize The Complex, a concert venue at 536 W. 100 South in Salt Lake City. Prosecutors say Elstein – whose supporters have included former University of Utah football coach Ron McBride – was laundering marijuana money through the business.
Federal Judge Clark Waddoups on Wednesday sentenced two other co-defendants, Scott Dale Gordon and David C. Justice, to probation.
Elstein, Gordon and Justice were first indicted in 2018. Court documents have described a scheme where from 2007 through 2014 they purchased marijuana from California and sold it in cities as far away as Chicago, generating $10 million in gross proceeds.
Much of that money was used to renovate The Complex and outbid other venues and promoters for musical acts.
“I couldn’t compete with them,” Corey Adams told FOX 13 News in an interview before the sentencing hearing.
Adams, who said he favored prison for Elstein, once operated the Murray Theater as well as the Avalon Theater in South Salt Lake. He said he once promoted all the Utah shows for metal acts including Korn and Insane Clown Posse, until The Complex offered those bands more.
“Whatever I would offer, [the defendants] would offer double, triple the money,” Adams said. “Because it didn’t matter to them whether they’ve turned a profit on the show or not. They were laundering money.”
Adams was an early partner with Elstein and Gordon on The Complex, but said he left the project over concerns about the source of their money. He took his worries to law enforcement. Prosecutors wrote that federal agents began their investigation “because of the complaints from these local music venues.”
Elstein pleaded guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering.
According to a memorandum prosecutors filed with the court, Elstein has sold his interest in The Complex and that of his home in Park City and a rental property in Midvale to a holding company. The holding company then entered into a “lease back” agreement with Elstein, prosecutors wrote.
“He plans on buying back these assets at some future date from [the holding company] with the revenue from The Complex,” according to the memo.
Elstein and his defense team had argued for a sentence of probation. He contended he needed to care for his three children, that he entered into the conspiracy in his early 20s before his brain was fully developed and that he has been a good citizen since the indictment, including coaching youth football and working with charities. They also argued a prison sentence for Elstein would further harm The Complex and workers there might lose their jobs.
Prosecutors asked for four years in prison.
“Gabe Elstein comes before this Court as one of the most notorious marijuana traffickers in recent Utah history,” government attorneys wrote in a brief before the hearing.
They went on to say that Elstein didn’t agree to plead guilty until it was clear at least one co-defendant was cooperating with prosecutors. As for the charity, prosecutors suggested it was to gain favor at sentencing.
McBride was in the courtroom Wednesday with other Elstein supporters. Elstein held events in support of McBride’s foundation.
Elstein smiled and hugged his attorneys after the hearing.
Outside the courthouse, Elstein attorney Joel Kittrell acknowledged it was a good outcome for his client.
“Mr. Elstein,” Kittrell said, “has built an amazing business – The Complex serving the community here for music and different cultural needs. Mr. Elstein, as the judge pointed out, is a different person since this conspiracy started a long time ago and ended a long time ago.”
Kittrell disputed accusations the money laundering hurt other concert promoters.
“There’s absolutely no evidence ever presented that any other business suffered because of The Complex,” he said.
Elstein’s wife, Angela Elstein, was earlier sentenced to probation, though she’s been back in court for failure to comply with the terms. It’s possible her probation is revoked and she’s sentenced to incarceration.
“}]] The man prosecutors called “one of the most notorious marijuana traffickers in recent Utah history” and whose money drove other promoters out of business was sentenced Wednesday Read More
