NORFOLK, Va. — A day after a swarm of FBI agents raided his downtown Norfolk CBD store, Carlton Upton Jr. stood in federal court to face an indictment on three felony counts of wire fraud.

The raid notably happened at the same time federal agents executed search warrants on the office and businesses of state Sen. Louise Lucas, including The Cannabis Outlet in Portsmouth.

It remains unclear whether the Wednesday raid on Upton’s CBD Shoppe on Granby Street is connected to the raid on Lucas’ businesses across the river. But both The Cannabis Outlet in Portsmouth and The CBD Shoppe in Norfolk have operated under the parent company of VA Freedom Life, according to state and city business records. VA Freedom Life is currently registered in Upton’s name with the CBD Shoppe address.

Upton’s federal indictment alleges he received more than $100,000 in pandemic-era business relief funds from loan applications with false information about his past criminal record and reported business income. One of the loans received in 2020 was to a business the indictment refers to as Virginia Freedom Life.

VA Freedom Life has ties to both Lucas and Upton. When VA Freedom Life obtained a Portsmouth certificate of occupancy in 2021, Lucas was the applicant and the company was listed as doing business as The Cannabis Outlet at 1215 High St. Lucas listed herself as the owner and CEO of VA Freedom Life in 2022 and 2023 and reported income from the company, according to financial disclosure forms she’s required to submit as an elected official. She did not list any affiliations in 2020, when federal authorities said the loan to Upton was made.

After his initial appearance in court Thursday, Upton declined to comment about past or current relationships with any politician without consulting his attorney.

When asked about any connection between his case and the raid on Lucas’ businesses, Upton said, “I’m just a pawn.”

“All you need to do is interview (Lucas),” he told The Virginian-Pilot at the Norfolk federal courthouse Thursday.

FBI agents had executed “multiple court-authorized federal search warrants” on Wednesday, according to a spokesperson. Special agents could be seen going in and out of The CBD Shoppe, as well as Lucas’ Portsmouth office and the adjacent Cannabis Outlet. The scope of the investigation, or its goal, is unclear.

Upton was arrested April 27 in Atlanta, where he said he lives and works as an R&B producer. The courtroom on Thursday afternoon was empty — save for the magistrate, prosecutor and Upton, who was dressed in a tan suit with braided dreads pulled back into a pony tail.

After acknowledging his charges Thursday, he is now out on bond awaiting arraignment later this month.

No charges have been filed against Lucas. Lucas has not responded to requests for comment, though she has issued a statement characterizing the raid as political retribution from the Trump administration.

“Today’s actions by federal agents are about far more than one more state senator; they are about power and who is allowed to use it on behalf of the people,” Lucas said Wednesday. “What we saw fits a clear pattern from this administration: when challenged, they try to intimidate and silence the voices who stand up to them.”

Lucas, 82, is a powerful member of the state Senate and chair of the Senate Finance and Appropriations Committee who led the charge on Democrats’ redistricting efforts. Democrats had sought to redraw the state’s congressional boundaries mid-decade in a way that positioned them to gain four seats. But the state Supreme Court struck down that plan Friday.

Connection through VA Freedom Life LLC

As a General Assembly member, Lucas is required to file annual statements of economic interests that outline her employment, income and properties she owns or rents. She has not listed VA Freedom Life as a source of employment since 2023, and it was not listed in her 2020 or 2021 statements.

VA Freedom Life LLC advertises itself as a plant-based wellness brand. State Corporation Commission records show it was formed in 2019 and was doing business as “The Cannabis Outlet” between 2021 and 2023, and registered to Upton. Other SCC filings show it is registered as doing business as The CBD Shoppe.

SCC records show The Cannabis Outlet Portsmouth was last registered to Lucas in February 2023 using her Portsmouth office address on County Street. That registration expired in June 2023.

But other SCC filings show VA Freedom Life LLC “released” the fictitious name of The Cannabis Outlet on March 9, 2023 — the same day “The Cannabiss Outlet” was registered in Lucas’ name at her County Street address, according to the SCC.

Lucas received a business clearance and certificate of occupancy to establish The Cannabis Outlet in 2021, according to business records from the city of Portsmouth. She listed VA Freedom Life as doing business as The Cannabis Outlet, and was approved for the retail sales of “CBD oils, tinctures, gummies and slushies.”

City business clearance records show a name change for The Cannabis Outlet to Herbal Life LLC as of March 27, continuing the sale of CBD products. SCC records trace Herbal Outlet LLC back to Lucas’ office at 1214 County St. The business clearance from March specified “no approval as medical marijuana program, recreational marijuana, processing or manufacturing of marijuana or hemp into CBD.”

CBD is a nonintoxicating compound found in cannabis. The 2021 business clearance stated applicants must adhere to all local, state and federal laws for licensing and operation. A city spokesperson also told The Pilot that no violations or complaints have been reported for the 1215 High St. property.

Lucas championed legislation in 2021 that decriminalized possession of small amounts of cannabis in the state. Retail sales are still illegal, but the General Assembly passed a bill this year that would establish a retail market beginning next year. That legislation is now on Gov. Abigail Spanberger’s desk.

Upton’s indictment

Whether Lucas has any current association with VA Freedom Life and Upton is unclear. The FBI last week announced Upton’s indictment on three felony counts of wire fraud, with one of those counts related to a loan he obtained for VA Freedom Life — referenced as Virginia Freedom Life in the indictment. The other two counts are related to loan applications for different businesses. He obtained two other loans, but one was rescinded.

The indictment alleges Upton received more than $100,000 in federal pandemic-era funding after filing several applications for Small Business Association loans throughout 2020.

Between April and September 2020, Upton allegedly applied for six loans through the Economic Injury Disaster Loan program, an existing disaster-related program that provided $10,000 in advances and up to $2 million in loans to small business owners, according to the indictment. Three were declined.

He obtained a loan for $11,800 using VA Freedom Life. He listed the company’s revenue at just over $58,000 when applying in April 2020. He unsuccessfully applied for another loan for the business a few months later, according to the indictment, claiming at that point the company’s revenue was $450,000.

The loan proceeds could be used to cover fixed debts, payroll, accounts payable and other bills that could have been paid if not for the disaster — or in this case, pandemic. The funding cannot replace lost sales, profits or business expansions.

Unlike other SBA loans, funds come directly from the U.S. Treasury, according to the indictment. The program collects information on business owners like gross revenues, cost of goods sold and criminal history.

Federal authorities allege Upton was part of a “scheme” to fraudulently obtain pandemic-era disaster-related benefits in the form of SBA-sponsored loans, and that those loans contained false information about Upton’s business entities, income, employment and criminal history background.

Upton’s approved loan application for VA Freedom Life allegedly contained false information because Upton responded “no” to a question about a past criminal record. The indictment says Upton has four previous felony convictions. A Virginia court records search shows he’s previously been convicted of felony grand larceny and a felony habitual offender offense, among other charges.

If convicted on any of the three counts, the indictment calls for him to forfeit any property associated with the proceeds he received. Federal authorities could also seek an asset forfeiture order.

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