California police hand deliver $800K worth of cannabis to distributor after illegal raid

California police personally delivered $800,000 worth of cannabis to a distributor last week, months after the department illegally seized the trove of goods.

Costa Mesa cops and other city officials begrudgingly returned more than 100 pounds of bud, boxes of vapes and other marijuana devices to Se7enleaf Thursday as part of a settlement reached last month with its owners.

Although the months-long fight for the products has finally ended, co-owner Michael Moussalli said the damage to his business has already been done.

“They essentially wrecked my business with what they’ve done,” Moussalli told The Post Wednesday.

“I’ve lost customers. I’m in a situation now where I may not be able to stay in one of my two facilities, because there’s a lot of financial burdens that need to be addressed. And, and quite frankly, I’m trying to right this ship as best as possible and save the business millions of dollars in damages and delays.”

The saga began on Sept. 7 when Costa Mesa authorities stormed into the Se7enleaf facility and aggressively raided its stock, accusing Moussalli and partner Matteo Tabib of using the established business to deliver products for their second budding business, High Seas.

Investigators claimed neither Se7enleaf nor High Seas had the appropriate license for delivery, but Moussalli emphasized that he and Tabib were using a third-party vendor for the delivery, who had the appropriate permits for the job.

High Seas was also in the process of obtaining its cannabis business permit approval at the time and was just waiting for the final sign-off, Moussalli said.

The city’s confusion over the operation was not from Moussalli and Tabib trying to skirt legal avenues, but from the investigator’s failure to conduct due diligence, he added.

“They came in, they conducted this raid, and they destroyed the Se7enleaf business,” the co-owner said.

Moussalli and Tabib sued the city just weeks later, presently a clear case that they were following the appropriate avenues to deliver their product, but claimed they were “extorted” by Costa Mesa officials into reaching a settlement in the case.

The city refused to approve the permit for High Seas, claiming it couldn’t do so until the investigation into Se7enleaf was finished, which Moussalli and Tabib realized could last years.

Because his businesses were rapidly losing money every second they fought for the permit, Moussalli and Tabib felt like they had no other option other than reaching a settlement with Costa Mesa.

In exchange for the return of its products, the business partners would pay for the legal costs of the case.

“They essentially held the High Seas permit hostage through their quote-unquote investigation, which over the over the next few months, we clearly showed them we were not doing anything illegal. Everything was being done through the appropriate licenses and by the appropriate license holders,” Moussalli said.

Even though the city came out on top of the situation — despite illegally raiding the cannabis business — the police and city officials made it clear they were not happy to be returning Se7enleaf’s products.

During last week’s handoff, employees reported overhearing one of the lead sergeants repeatedly making claims insisting that Se7enleaf was operating illegally.

The comments came as no surprise to Moussalli, who said it was just an extension of the officials’ attitude throughout the raid, investigation and legal dispute.

“They were very arrogant. They were very aggressive,” he recalled.

The months-long battle with the city has cost Moussalli and Tabib not only thousands of dollars in legal fees, but an untold millions in potential business.

Several other cannabis boutiques have cropped up since they were raided in September, usurping the pair’s business while they struggled to fight for their permits.

“We were bullied in this process. We were extorted in this process, because the city told us the only way they were going to settle was if we pay for all of the legal fees and the rates, fees and everything associated with this mess that they created,” Moussali said.

The city of Costa Mesa declined The Post’s request for comment.