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Park City Resident Sentenced to Probation in Marijuana Conspiracy Case

Park City Resident Sentenced to Probation in Marijuana Conspiracy Case

Gabriel Elstein, a former music venue owner and Park City resident, has been sentenced to three years of probation in a criminal marijuana conspiracy case. Elstein, who was previously the owner of Salt Lake City’s The Complex music venue, pleaded guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering in May 2024.

According to court documents, Elstein was involved in a conspiracy to transport hundreds of pounds of marijuana from California to Utah, along with his wife, Angela Elstein, and St. George resident Scott Gordon. The indictment alleged that the trio obtained marijuana from wholesale suppliers in California and recruited drivers to deliver the drug to various locations in the Midwest and Utah.

The proceeds from the drug conspiracy were used to fund The Complex and Bondad Productions, a business focused on promoting music shows. The indictment claimed that approximately $400,000 of the construction costs for The Complex came from marijuana cash proceeds laundered through Bondad Productions and The Complex bank accounts. Elstein admitted to using the funds to maintain the marijuana conspiracy, renovate The Complex, and financially support Bondad Productions and a third company, Dumbles Holdings.

As part of his guilty plea, Elstein agreed to pay the U.S. Treasury Department $10 million. However, he was able to raise and pay the forfeiture by selling his interest in The Complex, his Park City home, and a rental property in Midvale to a holding company for $10.2 million. The company then entered into a lease-back agreement with Elstein, allowing him to continue to operate The Complex and eventually buy back the assets.

Prosecutors had argued for a substantial prison sentence, but Elstein’s attorneys sought a probationary sentence instead. They pointed to his success while on pre-trial supervision for the past six years and his ability to lead The Complex as a businessman after he left the conspiracy. Ultimately, U.S. District Court Judge Clark Waddoups sided with the defense and sentenced Elstein to three years of supervised probation.