A man who operated large-scale marijuana growing operations on the Navajo Nation and near Estancia pleaded guilty Tuesday to multiple federal charges, including drug trafficking, immigration violations and environmental crimes.
Dineh Benally, who ran what prosecutors called an elaborate scheme involving Chinese investors and illegal workers, agreed to plead guilty to nine counts in U.S. District Court in Albuquerque. He faces up to life in prison and more than $10 million in fines when sentenced in December.
Under the plea agreement filed Sept. 23, Benally admitted to manufacturing and possessing with intent to distribute more than 1,000 kilograms of marijuana, hiring and harboring unauthorized aliens, smuggling goods into the United States, and environmental violations, including illegally discharging pollutants into the San Juan River.
According to court documents, Benally worked with Chinese business partners from 2018 to 2025 to solicit investments of $20,000 to $50,000 from Chinese nationals. Many investors were led to believe they were funding legitimate hemp and cannabis operations on tribal land and in Torrance County.
Benally created fake cannabis cultivation licenses and established companies, including Native American Agricultural Company, to legitimize the scheme, prosecutors said. At its peak, his Navajo Nation operation included more than 1,100 greenhouses across 30 farms covering 400 acres.
In Torrance County, Benally obtained a state commercial cannabis license to grow approximately 5,000 plants, but was operating with more than 20,000 plants when authorities raided the facility in January, which was first reported by The Independent. Court documents show Benally and an associate tampered with utility meters to steal electricity from Central New Mexico Electric.
During raids in January, federal agents seized more than 8,500 pounds of marijuana and found 10 Chinese nationals working illegally at the Estancia operation. Two were determined to be unauthorized aliens, according to the plea agreement.
The plea agreement also details environmental violations, including the construction of an unauthorized dam on the San Juan River and filling in river channels without permits. Benally admitted to dumping sandbags, rocks, sand and agricultural waste into the waterway.
Prosecutors agreed to recommend reduced sentences in exchange for Benally’s cooperation and acceptance of responsibility. The U.S. Attorney’s Office will not bring additional charges related to the admitted conduct.
Benally also agreed to forfeit two firearms and $35,060 in cash seized during the raids.
