New Mexico State Police have destroyed tens of thousands of pounds of cannabis in what regulators are calling the largest such seizure since the state’s new marijuana laws were enacted in 2021. This significant operation, targeting a growing operation in northwestern New Mexico, has sparked a legal dispute as the company involved, NNK Equity LLC, vows to fight back over what it claims are wrongful actions.
State Police’s Massive Cannabis Seizure
In October, state authorities assigned dozens of agents to destroy the marijuana plants at a greenhouse operation in Waterflow, a rural area near the Navajo Nation and close to the Colorado border. The operation was part of a broader crackdown following a series of violations that led to the state Cannabis Control Division moving to revoke NNK Equity’s license.
The company was accused of several infractions, including failure to post its licenses on site, not obtaining necessary water rights for cultivation, and neglecting sanitation and health requirements. There were also issues with surveillance cameras, which regulators argued were inadequate for monitoring key areas of the operation.
State Police Chief Troy Weisler didn’t mince words, saying, “The organization involved showed a blatant disregard for the laws of this state, and we will prove that once this investigation is over.”
Legal Response: Company Plans to Sue
In response to the seizure and destruction of its cannabis stock, NNK Equity has vowed to take legal action. Represented by Albuquerque attorney Jacob Candelaria, the company disputes the state’s claims, arguing that its civil rights were violated throughout the process.
Candelaria raised concerns over the state’s failure to properly notify NNK Equity about the intent to revoke its license and its refusal to grant a hearing on the matter. He also pointed out that his clients, Irving Lin and Bao Xue, speak Mandarin Chinese and had limited proficiency in English, making it difficult for them to fully comprehend the proceedings. Lin had requested a Chinese translation of the notice, but according to Candelaria, the request was ignored.
The Cannabis Control Division maintains that it complied with all legal requirements, including serving notice and offering the company its due process rights. Despite these claims, NNK Equity plans to seek a state district judge’s intervention to have the license revocation overturned.
Additionally, the company intends to sue the state for destroying what it considers to be hundreds of thousands of dollars worth of private property.
State Regulators Defend Their Actions
Despite the ongoing legal battle, state regulators are standing firm. According to the Cannabis Control Division, NNK Equity was issued a marijuana cultivation license in December 2023 for a facility in Waterflow. Following a routine compliance check in June, regulators discovered that the company had exceeded its permitted plant count.
The situation escalated when investigators found unlicensed plants at a separate location, which led to a further investigation. State Police Special Investigations Unit was called in, uncovering even more violations related to transportation and tracking requirements. Specifically, NNK Equity failed to properly assign identifying numbers to each of its plants, a key requirement under state law.
The state’s actions have raised important questions about the balance of power between private business operations and state regulation, especially within the cannabis industry. Critics of the state’s actions argue that regulators and law enforcement acted too swiftly, without providing adequate opportunity for the company to address the alleged violations.
Implications for New Mexico’s Cannabis Industry
The dispute between NNK Equity and state regulators highlights growing pains in New Mexico’s rapidly expanding cannabis industry. Since recreational marijuana was legalized in 2021, the state has faced increasing challenges in regulating cultivation, sales, and distribution.
With cannabis still illegal at the federal level, state laws continue to evolve and create complexities for businesses operating within the industry. This case, along with others involving violations of cultivation limits and tracking requirements, underscores the difficulties faced by companies trying to comply with a constantly shifting regulatory framework.
For now, all eyes are on the legal battle that will likely determine not only the fate of NNK Equity but also set a precedent for how the state handles similar cases in the future.
