CCD Fines Bernie Ellis $20,000 for “G*nja Giveaway”
The New Mexico Cannabis Control Division (CCD) has taken legal action against Alto Llano, operated by Bernie Ellis, a vocal cannabis advocate and former public health epidemiologist.
The charges follow an unprecedented act on November 1, 2024, when Ellis distributed 25 pounds of cannabis to around 200 individuals in Dixon, New Mexico, during an event he called the “Great G*nja Giveaway.” This bold move, intended to protest industry challenges, has put Ellis at odds with regulators and risks severe penalties, including license revocation and hefty fines.
Alleged Violations
The CCD has outlined several violations under the Cannabis Regulation Act (CRA):
1. Trafficking Cannabis Products
Alto Llano Cannabis allegedly distributed cannabis outside licensed facilities and without proper courier authorization, which constitutes trafficking under their micro-producer license.
2. Operating Without Permits
The CCD asserts that retail activities were conducted without necessary state and local permits, and Alto Llano Cannabis also failed to remit taxes on the cannabis distributed.
3. Track-and-Trace Failures
During a November 5 inspection, the CCD discovered inventory discrepancies, finding no cannabis at the licensed facility despite BioTrack records suggesting otherwise.
Ellis’ Defense
Ellis framed his actions as a protest against an oversaturated cannabis market and exploitative pricing. According to him, dispensaries were offering as little as $600–$700 per pound for high-quality flower, only to resell it at $4,500 per pound—a markup he deemed unfair. With declining prices and an expiring license, Ellis opted to distribute his product directly to medical patients rather than risk black-market sales.
“I helped many medical cannabis patients save money on their medicine,” Ellis said, justifying his actions as a way to meet patient needs and avoid waste.
A Legacy of Advocacy
This is not Ellis’ first legal clash over cannabis. In 2002, his Tennessee farm was raided for growing marijuana for AIDS and cancer patients, leading to a seven-year legal battle and cementing his reputation as a staunch advocate for medical cannabis.
Settlement and Penalties
As the legal battle unfolded, Alto Llano Cannabis reached a settlement with the CCD on December 20, 2024. Key points include:
• License Revocation: Immediate revocation of Alto Llano Cannabis’ license, with a three-year prohibition on reapplying.
• Financial Penalty: A $20,000 fine to be paid within 30 days.
• Surrender of Licenses: All CCD-issued licenses must be returned.
• Acknowledgment of Violations: Ellis accepted the violations outlined in the Notice of Contemplated Action.
• Waiver of Rights: Ellis forfeited his rights to appeal or contest the charges.
Broader Implications
Bernies case could point to systemic challenges in New Mexico’s cannabis market, including oversupply, depressed prices, and limited options for small growers to distribute surplus product. While Ellis’ twenty-thousand dollar protest raises critical questions about industry fairness and sustainability, the CCD emphasized the importance of compliance to maintain a safe and equitable market.
