In a shocking turn of events, New Mexico marijuana regulators have taken decisive action against two growing operations in a rural county, revoking their licenses and imposing hefty fines of $1 million each. The first business, Native American Agricultural Development Co., is linked to a Navajo businessman who faced federal raids on his cannabis farming operations in northwestern New Mexico last year. This led to the Navajo Department of Justice suing Dineh Benally, resulting in a court order halting his operations.

Adding to the controversy, a group of Chinese immigrant workers filed a lawsuit against Benally and his associates, alleging that they were coerced into working long hours illegally trimming marijuana on the Navajo Nation, where cultivation is prohibited. The notice released by New Mexico's Cannabis Control Division accused Native American Agricultural Development of multiple violations, including surpassing the state's plant count limits, failing to track and trace inventory, and creating unsafe conditions. Benally and his attorney, David Jordan, have yet to respond to the allegations.

The second business to have its license revoked was Bliss Farm, located in rural Torrance County, not far from Benally's operation. State officials clarified that the two businesses are not connected in any way. Bliss Farm was cited for a staggering 17 violations, with evidence of a recent harvest without proper records entered into the state's track and trace system, indicating potential illicit transfers or sales. Adam Oakey, an attorney representing the investors who own Bliss Farm, expressed disappointment that the state did not work with them to address the issues before revoking the license. Oakey fears that this action may discourage other industry players from investing in New Mexico.

Clay Bailey, the acting superintendent of the New Mexico Regulation and Licensing Department, condemned the illicit activities at both farms, stating that they undermine the efforts of law-abiding cannabis businesses in the state. He emphasized that the excessive number of illegal cannabis plants and other serious violations demonstrate a blatant disregard for public health, safety, and the law.

The violations at Native American Agricultural Development were particularly egregious, with inspectors discovering approximately 20,000 mature plants on the premises - four times more than allowed under the license. Additionally, another 20,000 immature plants were found. The operation was also found to have inadequate security measures, lack of chain of custody procedures, and poorly maintained grounds filled with trash and pests. Compliance officers noted evidence of a recent harvest, yet no plants had been entered into the state's track-and-trace system.

These violations were initially reported by Searchlight New Mexico, an independent news organization, in the fall of last year. Navajo Attorney General Ethel Branch expressed the tribe's desire for justice, highlighting the harm caused by the previous grow operation in northwestern New Mexico. While federal prosecutors declined to comment, the New Mexico Attorney General's Office confirmed that they are actively investigating potential criminal activity within the state's cannabis industry in collaboration with federal partners.

The repercussions of these license revocations and fines are significant for both businesses. Bliss Farm, having already invested tens of millions of dollars, may have to resort to legal action to reopen the farm. Meanwhile, Native American Agricultural Development faces the consequences of its numerous violations, which could have far-reaching implications for the Navajo businessman and his associates involved in the operation. The New Mexico cannabis industry now faces increased scrutiny, with ongoing investigations seeking to uncover any potential criminal activity.