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SAN FRANCISCO (CBS 5 / AP / BCN) ― The founder of an Oakland food factory that laces everything from candy and cookies to barbecue sauce with marijuana surrendered Thursday to face a federal drug charge and was later freed on $300,000 bond.

Michael Martin, 33, of El Sobrante, was granted release on bail by U.S. Magistrate Nandor Vadas following his initial appearance in federal court in San Francisco. If convicted on the charge of conspiracy to manufacture marijuana, Martin faces a possible maximum sentence of 20 years in prison.

Federal drug agents last week raided Tainted Inc. in Oakland and arrested three of Martin's employees on drug charges for allegedly producing such marijuana-laced products as honey, soda and other snacks. Authorities said they seized numerous laced products during the raids.

While Martin's employees were arrested, federal officials couldn't find Martin at the time and considered him to be a fugitive. But Martin said Thursday that he was on vacation and arranged to turn himself in once he heard of the raids.

Outside of court Thursday, Martin's attorneys Sara Zalkin and Tony Serra declined to comment on their client's business operations, except to say that they expected he would be indicted soon by a federal grand jury.

Martin's supporters with the nonprofit Safe Access Now organization said he was making Tainted's products for use by patients at medical marijuana clubs in California under the state's Compassionate Use Act.

While California has legalized marijuana use to treat medical conditions, federal drug law still bans the plant's use for all purposes and makes no exception for state medical marijuana laws. The U.S. Supreme Court has also ruled that federal law trumps state law when it comes to medical marijuana.

At a rally in Oakland earlier Thursday before his court appearance, Martin said, "I believe truly in my heart that I have done nothing wrong and have confidence that these charges against me will come to light as a horrific injustice and an inexcusable waste of our national resources."

To meet his bail, Martin's mother, Kimberly Miller, posted $150,000 of equity in her house in Apache Junction, Arizona. The remainder of the bail was met with an unsecured bond signed by Martin, his mother and his wife, Elinor Martin.

According to the search warrants, Tainted Inc.'s products first came to the attention of investigators in April 2004 when an internal Drug Enforcement Administration publication reported that agents had recently seized marijuana-laced candy bars called Buddafingas and Stoners that were wrapped in packages mimicking the popular brands Butterfingers and Snickers. The article put out a call for the identity of the laced candies' maker.

In March 2005, according to a court document filed by DEA agent William Armstrong, an anonymous e-mail to the DEA fingered Martin's Tainted Inc. as the candies' source. The DEA launched its investigation two months later and employed a paid informant who knew Martin to help, according to the document.

The informant bought $1,260 worth of Tainted products, including Stoner bars priced at $4 each, Mr. Greenbud bars at $8 each and $20 jars of laced peanut butter, according to the document.

The DEA also said that Tainted Inc. has purchased close to four tons of chocolate for about $14,600 from Guittard Chocolate Co. in the last two years.

"Tainting candy and other produces with marijuana is not sweet, it is criminal," DEA Special Agent Javier Pena said in announcing the raids last week.

The three others charged along with Martin are Jessica Sanders, 30, of San Leandro; and Oakland residents Michael Anderson, 42, and Diallo McLinn, 35. All are free on bond after making their initial appearances in federal court in Oakland last week. None have entered a plea.

Martin and the others are slated to return to court in Oakland for arraignment hearings before U.S. Magistrate Wayne Brazil on Oct. 26.

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