The Omaha man accused of running a warehouse that supplied area smoke shops with illegal THC products has been sentenced to 18 months of probation after being found guilty of an amended possession charge. Abdulmalek Nagi, 31, was sentenced Tuesday in Douglas County District Court, more than a year and a half after investigators say they raided a warehouse full of vapes, edibles, cash and other drugs.
According to the Omaha World-Herald, Nagi was arrested last year on suspicion of operating an illegal drug distribution warehouse supplying area smoke shops with marijuana products. He was initially charged with three counts of possession of a scheduled drug with intent to distribute after detectives executed a search warrant at a warehouse at 2700 S. 9th St., the paper reports. Police told the newspaper detectives found a large-scale illegal THC sales operation supplying numerous area smoke shops with illegal THC products.
The case had already drawn local television coverage when it first broke. KETV reported that Nagi, whom it also identified as 31, was convicted of an amended charge of possession of a controlled substance and was accused of supplying several smoke shops with illegal Delta-9 THC products. Investigators told the station they seized thousands of illegal Delta-9 THC vape pens and cartridges, THC waxes, THC-infused candies, leafy marijuana, Khat, psychedelic mushrooms and a significant amount of cash from the scene.
Conflicting Reports on the Warehouse's Location
Accounts of exactly where the warehouse sat have varied. KETV reported that Omaha police said Nagi was running the warehouse in the area of 48th and F streets, while WOWT's report on the raid placed the warehouse near 50th and F Street. Neither discrepancy has been resolved in the available reporting.
WOWT reported that Nagi was booked into Douglas County Corrections on a charge of possessing a scheduled drug with intent to distribute, with his bond set at $150,000. The outlet also reported that the raid involved an Omaha Police SWAT team, a K-9 unit, the Sarpy County Sheriff's Office and the Nebraska Attorney General's Office. KETV separately reported that two other possession counts Nagi faced were dropped because of insufficient evidence, leaving the single amended charge that led to his conviction.
A Wider Crackdown on Mislabeled Hemp Products
The Nagi case has unfolded alongside a broader local enforcement push against THC-infused products sold as hemp. Per the Omaha World-Herald, the Douglas County Sheriff's Office purchased products from stores across the county and tested their chemical composition as part of that effort. Nebraska Attorney General Mike Hilgers said deputies found products labeled as hemp that were technically marijuana because of a concentrated delta-9 compound, according to the paper's reporting.
That enforcement activity extended well beyond this single case. KETV reported that Hilgers' office issued cease-and-desist letters to more than 100 retail locations and franchised stores in Omaha selling THC-containing products. The attorney general's office said investigators purchased products from stores owned by 35 companies and found that each store investigated had at least one product marketed as hemp that actually had a delta-9 concentration over the legal limit, the station reported.
The legal distinction driving these cases traces back to federal law. Marijuana remains illegal in Nebraska, while hemp is legal, according to the World-Herald. The 2018 federal farm bill legalized and regulated the production of hemp and set a 0.3% limit on delta-9 THC content, but it did not place limits on other derivatives of the hemp plant such as delta-8, delta-10, CBD and THCA, the paper reported. A Nebraska Legislature statute excerpt likewise states that hemp is not considered a controlled substance under the state's Uniform Controlled Substances Act, though the available text does not spell out how that definition applies to specific mislabeled products.
Part of a National Pattern
Omaha is not alone in grappling with this gray area. MJBizDaily reported that law enforcement officials have raided and charged dozens of hemp operators across the country ahead of a federal closure of a hemp-product loophole. The outlet noted that in September, 12 people were arrested in a seven-county law enforcement sting in Pennsylvania over alleged sales of high-potency THC products in smoke shops and convenience stores, and that 13 ostensibly legal hemp shops were raided by North Carolina county sheriff's deputies and local police on October 14. Attorneys and advocates cited in that report said they expect state and local law enforcement to take the lead on these issues going forward.
