Golden Roots, LLC Faces $530,000 Fine for Unlicensed Cannabis Activity
Albuquerque, NM — The New Mexico Regulation and Licensing Department (the “Department”) has issued a final decision and order against Golden Roots, LLC, resulting in a substantial fine for unlicensed cannabis activity. The decision, stemming from Case No. 2023-029, was finalized on May 7, 2024, after a comprehensive evidentiary hearing held on March 7, 2024.
Background: Golden Roots, LLC’s cannabis license was revoked on October 25, 2023, following violations of the Cannabis Regulation Act, as established in Case No. 2023-002. Despite the revocation, Golden Roots continued commercial cannabis operations. This prompted the issuance of a Notice of Contemplated Action (NCA) on November 8, 2023, by Clay Bailey, Superintendent of the Cannabis Control Division, alleging further unlicensed activity.
Hearing and Findings: During the March 7, 2024 hearing, both parties presented their cases. The Cannabis Control Division, represented by Administrative Prosecutor Robert Sachs, provided substantial evidence including testimony from New Mexico State Police Officer Wayne Harvey and Division Inspector William Fresquez. Surveillance reports, audio recordings, and photographs demonstrated continued cannabis sales at Golden Roots' facilities in Albuquerque after their license revocation.
Key findings included:
Surveillance by Officer Harvey and Inspector Fresquez indicated ongoing cannabis transactions.
Audio recordings confirmed that Golden Roots employees were selling cannabis products.
Photographic evidence showed cannabis products displayed in retail areas.
Despite Golden Roots’ attempt to dismiss the action, claiming an ongoing appeal of the revocation order in District Court, the hearing proceeded. The evidence led Hearing Officer Max Shepherd to conclude that Golden Roots continued unlicensed cannabis activities beyond the revocation date.
Conclusion and Order: The Department determined that Golden Roots, LLC conducted unlicensed cannabis operations for 53 days, from the revocation date until January 1, 2024. Consequently, a fine of $10,000 per day was imposed, totaling $530,000. The fine must be paid within 90 days of receiving the order via certified mail.
This decision serves as a critical enforcement action under the Cannabis Regulation Act, underscoring the state's commitment to regulating commercial cannabis activities. Golden Roots, LLC retains the right to appeal the decision within 30 days.
