Money found in Paonia murder investigation forfeited to government; DEA's claim says cash stashed in safes was from marijuana sales

Friends discovered Arnold and Gallegos dead inside a garage apartment on the property on Feb. 4; subsequent evidence demonstrated the pair died on Feb. 2.

Mark Burns, 65, a former tenant who had been evicted from the main home the year before, was charged with their murders, which he denies. His defense team in prior court hearings pointed to multiple other people who might have had a motive to harm Arnold.

Prosecutors produced surveillance video showing a man they say is Burns arriving at the property and shooting both victims. They allege Burns had become embroiled in a civil case involving Arnold and Arnold’s ex-girlfriend, who Burns was dating. They said Burns knew the property and he knew Arnold well enough to know that Arnold didn’t keep his money in the main home on the property.

The Drug Enforcement Administration in filing for civil forfeiture this past July asserts the $362,270 found in safes on the property after the deaths was money from unlicensed marijuana grows and sales and thus, subject to forfeiture to the U.S. government.

The forfeiture complaint details a dispute over marijuana plants from 2019, when Arnold told law enforcement someone had stolen five plants, valued at about $40,000 from an unlocked structure. Later that same year, Arnold also reported the theft of 8 pounds of marijuana.

According to the federal court filing, Arnold identified a possible suspect. The person named in the document is not Burns, and the person has not been charged in Arnold and Gallegos’ deaths.

In 2021, the same person Arnold had suspected in the theft reported finding his windshield smashed and a note stating “my weed, or my money you stole!”

The man told law enforcement he thought Arnold had done it and that in 2020, Arnold had accused him of stealing marijuana.

In 2020, law enforcement got a tip about possible illegal marijuana cultivation at Black Bridge Road. That tip identified a man who was neither Arnold, nor the person he suspected of taking his marijuana in 2019. This man also is not Mark Burns.

The man spoke to authorities after the deaths were discovered and explained that he was allowed to grow marijuana on Arnold’s property, where he lived in a camper. During this time, he reported, nine different people attempted to take the marijuana, but were unsuccessful.

Law enforcement also spoke to the man who had suspected Arnold of breaking his windshield over allegedly stolen marijuana. He stated Arnold had been in the marijuana business for 20 years and learned how to refine his grow operations to produce larger yields.

The man said he had helped Arnold for eight years, distributing the product and in a three- to four-year period, selling about $100,000 of it to a person he would meet at a Montrose motel. That person would take the drug to New Mexico, the document said.

“(Man) stated that Arnold knew that distributing marijuana in this manner was illegal. (Man) knew that Arnold had kept at least $100,000 in United States currency in a safe in his shop,” Agent William T. Neff wrote in the forfeiture complaint.

Authorities spoke with still another man, who in April this year discussed grow ops on Arnold’s property. This witness said he helped Arnold package his wares and that customers from Denver would buy the drug in 2- to 5-pound quantities.

Arnold commanded a price of up to $1,450 per pound, particularly from his “Peyote Cookie” variety. This variety was grown from seeds sold by a business in the United Kingdom.

The witness reported that he would receive $100 per pound of the marijuana he sold for Arnold, but that dropped after Arnold partnered with the man who moved into a camper on his property, as well as because Arnold “was charging too much,” and so, was unable to sell as much marijuana.

Neff determined Arnold was not licensed with the state of Colorado for a marijuana grow. State records also showed Arnold had no reported state wages from 2019 to February 2022.

The complaint sought forfeiture of the assets and, in accordance with legal rules, the government published a notice of complaint for forfeiture to all known interested parties.

On Sept. 15, Arnold’s estate filed a claim, asserting an interest in the money. The estate reached a settlement with the government on Oct. 13. Final judgment entered on Oct. 21, giving $36,227 to Arnold’s representative and $326,043 to the government.

The settlement is between the government and Arnold’s estate; it does not involve the local district attorney’s office.

“We are aware of this federal action,” Assistant District Attorney Rob Zentner said. “I cannot comment further on this issue.”

Burns is due in court Friday for a motions hearing in the criminal case. He is the only person charged in the deaths. A second motions hearing is set for Dec. 2, with trial for now slated next year.

Katharhynn Heidelberg is the Montrose Daily Press assistant editor and senior writer. Follow her on Twitter, @kathMDP.