A local medical marijuana dispensary may be in even more trouble now. CannaHelp in Palm Desert continues to do business, even after the city revoked their business license.

"They may well be in violation."

Palm Desert City Attorney David Irwin won't discuss what possible action may be taken against CannaHelp, after the medicinal marijuana dispensary defied the city's cease and desist order to operate.

CannaHelp allegedly sold marijuana to an undercover cop who didn't have necessary credentials. Irwin says that's a city violation.

"They would service people who had certain identification and they didn't do that."

We visited CannaHelp to talk to owner, Stacy Hochanadel, to get his side of the story. He wasn't available for comment.

Feds and local police recently raided CannaHelp, suspecting it sold marijuana for profit. We spoke with Hochanadel after the raid. He said he was, indeed, drawing a salary from CannaHelp sales.

"If you look at the Compassionate Use Act, it specifically says, you shall not sell marijuana for a profit. So I think your interview was very interesting," said Erwin.

Caregivers in Palm Springs shut down after it was raided last month. Marijuana patients say they're the ones really affected.

"People voted a law in and it's kind of a bummer."

With Caregivers now out of business and CannaHelp in hot water, Capps is the only dispensary in the Valley that has not been in trouble. We tried to talk to them about the subject, but they refused.

Meanwhile, Palm Desert's city attorney and his staff are busy figuring out their next move.

"Several alternatives. I don't know which one we will take and I'm not even free to share the alternatives with you."