4 San Jose smoke shops caught illegally selling mushrooms, whip-its in SJPD undercover operation

Five employees and business owners were arrested for drug-related crimes.

Dustin Dorsey Image
Tuesday, August 12, 2025
Bay Area smoke shops caught illegally selling mushrooms, whip-its

SAN JOSE, Calif. (KGO) -- A bust of illegal drugs being sold at smoke shops in San Jose has local leaders worried about public safety.

Police found four locations selling mushrooms, cannabis and nitrous oxide, illegally and as there's fear similar crimes may be taking place at other locations throughout the city.

Smoke shops throughout San Jose are highly regulated by city code enforcement to tobacco products - only.

But, word spread that illegal and dangerous drugs and products, like mushrooms and nitrous oxide, were being sold at certain locations.

An undercover operation by the San Jose Police Department revealed a troubling truth.

"This was large-scale, illegal sales of cannabis products - unregulated, untaxed and unsafe," SJPD Chief Paul Joseph said. "This is completely illegal. This is no different than a drug dealer on a street selling illegal drugs."

Five employees and business owners were arrested for drug-related crimes in the bust that spanned San Jose - including:

  • Grizzly's Smoke Shop

  • JT's Smoke Shop

  • East Side Smoke Shop

  • McKee Smoke Shop

MORE: High density of smoke shops in East San Jose pushes plan for temporary moratorium

Councilmember Peter Ortiz raised this issue to police, highlighting his ongoing push to clean up city smoke shops.

"I have been fighting for a citywide moratorium on new smoke shops and tougher regulations on the existing ones," Ortiz said. "We must protect our youth, hold bad actors accountable and keep our neighborhoods safe."

In total, officers seized 74 pounds of cannabis products, 40 pounds of psylocibin mushrooms, $11,000 in cash, a firearm and more than 400 cannisters of nitrous oxide - also known as whip-its.

"Deaths in our country from nitrous oxide abuse have more than doubled since 2019," San Jose Mayor Matt Mahan said. "Emergency room visits from use of the same inhalant are up 32% and at same time frame."

MORE: Santa Clara County, San Jose cracking down on illegal use, distribution of drug 'whip-its'

A San Jose mother reached out to ABC7, concerned that her son was being sold nitrous oxide at a local smoke shop.

It is why these leaders are so worried that the problem may span further than just these four locations.

"I would imagine that we could probably go to different locations throughout the city and potentially find the same problem occurring," Chief Joseph said. "Which is why we want to publicize what we're doing today - to let other businesses know that we are watching, we will be conducting additional investigations and anyone else who is engaging in behavior like this can expect the same type of enforcement action."

SJPD asks if anyone has information on illegal operations at smoke shops, reach out to the department's non-emergency line or email, or report the issue to 311.

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