Distribution of a Controlled Substance / 21 U.S.C. Sec. 841(a)(1) is the federal law which makes it a crime to distribute, dispense, or possess with intent to distribute a controlled substance. Distribution of a controlled substance includes any act of transferring a controlled substance from one person to another, whether for money, goods, or services. Types of distribution of a controlled substance include selling, trading, gifting, bartering, or giving away a controlled substance. This law applies to all controlled substances, including both illegal and legal drugs. Penalties for distribution of a controlled substance can range from a misdemeanor to a felony, depending on the amount and type of controlled substance involved.