Two Torrance County marijuana-growing operations have been ordered to shut down and the owners each fined $1 million in rulings announced on Jan. 2. The fines are the largest by far the Cannabis Control Division has issued to violators.
“The illicit activity conducted at both of these farms undermines the good work that many cannabis businesses are doing across the state,” said Clay Bailey, acting New Mexico Regulation and Licensing Department superintendent. “The excessive amount of illegal cannabis plants and other serious violations demonstrates a blatant disregard for public health and safety, and for the law.”
Bliss Farm, which also does business as Love 420 and Grown Farm, just north of Estancia was cited for 17 violations. The registered owner of Bliss Farm is Chunlei Zhao and Grown Farm/Love 420 is Pengyu Wang, according to CCD records.
“The farm’s large number of cannabis plants on site and evidence of a recent harvest without records entered into the track and trace system led the division to conclude the plants were transferred or sold illicitly,” according to a department news release.
Bliss operators also remain under federal and state investigation in connection with
“allegations of potential wage theft and human or labor trafficking,” according to the state Attorney General’s Office. In addition, “our special agents along with state and federal law enforcement agencies are currently evaluating evidence recently recovered from the facility to determine if there have been any violations of the law.” The investigation remains ongoing and no resolution has yet been announced, the AG’s office said last week.
The Native American Agricultural Development Company, south of Estancia, was cited for eight violations, including growing almost 40,000 more marijuana plants than for which it was permitted. The farm is owned by Dineh Benally.
Benally, who ran for state senator in 2020, was previously under federal investigation in 2020 for an illegal cannabis growing operation he had ongoing on native Navajo land near Shiprock. Benally, who claims Navajo descent, has been sued by Chinese immigrant workers, alleging forced labor.
“CCD compliance officers also saw evidence of a recent harvest at NAADC, but no plants had ever been entered into the mandatory track and trace system,” the release said.
“Compliance within the industry is the (Cannabis Control Division’s) main priority and our office is committed to ensuring New Mexicans have access to safe cannabis products,” said Todd Stevens, CCD director. “The team worked diligently on both of these cases to determine the appropriate action for violations at a scale we hadn’t seen before. The outcomes were justified under the law based on the egregious conduct of these individuals and I hope this serves as a reminder to those who might be violating the laws and rules the state has put forth.”
The two Torrance County pot-growing operations become the fifth and sixth growing operations to be shut down by the CCD. Both were ordered to destroy all marijuana plants and cultivated product on site and immediately stop all commercial activity.
The division had previously issued $368,924 total against all prior transgressors, according CCD records. The fines will be remitted to the State Treasurer and are to be deposited by law in the Current School Fund.
During a June 2023 inspection, CCD found Bliss Farm had exceeded its grow permit by about 10,000 plants; was not utilizing the state’s mandatory track and trace system; had unpermitted structures, unsanitary conditions at production facility, as well as pests among its many violations.
Bliss Farm had a hearing in October, during which “the farm’s attorney stated that all violations had been remedied,” according to the release. “However, upon returning to the facility, compliance officers did not see any evidence that the violations were fixed.”
The Native American Agricultural facility underwent a September inspection and a hearing in November, during which Benally represented himself.
Among its other violations, it was shown the operation did not pay sufficient plant fees, had no chain of custody procedures and failed to use quality control assurance testing.
If the fines are not paid within 90 days of receipt, the Division can seek a court order to collect.