Maggie’s Farm Licenses Revoked Amidst Looming Legal Battles
Maggie’s Farm, a cannabis retail and grow operating across Colorado and New Mexico, is facing escalating legal battles that threaten its survival in both states. Following looming fines and a recent major recall, the New Mexico Cannabis Control Division has revoked more than five licenses collectively managed by the group, imposed an $80,000 fine, and has banned the operator for three years.
New Mexico Violations
In New Mexico, the Cannabis Control Division (CCD) took action against Maggie’s Farm under Case No. 2024-015. The settlement, signed on October 28, 2024, addresses multiple complaints about the company’s operations, which include all its grow locations like WH Agriculture, SR Agriculture, and BC Agriculture, under the management of Kimberly Nanke and Winston Harold Conkling.
The CCD's investigation revealed 17 regulatory violations, ranging from improper inventory tracking to the use of unregistered pesticides and unsanitary conditions at cultivation facilities. The company is also accused of exceeding its licensed plant count and failing to display mandatory permits. Sources indicate that Maggie’s Farm refused to retrieve recently recalled products and has since been unresponsive to customer refund requests, further aggravating their issues.
To resolve these matters without a full hearing, Maggie’s Farm agreed to a settlement, including:
Surrendering all licenses by November 1, 2024.
Paying an $80,000 fine within 30 days.
Transferring remaining cannabis products exclusively to licensed businesses, with buyers assuming all compliance responsibility.
The CCD retains the right to impose further penalties if Maggie’s Farm fails to meet the agreement’s conditions or attempts to re-enter the market within the next three years.
Cash Seizures in Colorado
Meanwhile, in Colorado, Maggie’s Farm is entangled in legal and financial disputes, highlighted by recent cash seizures at its dispensary locations in El Paso and Pueblo counties. This followed a civil ruling by an El Paso County judge, leading sheriff’s officials to confiscate large sums of cash, documents, and keys from the company's safes. The seizures are not linked to criminal activity but add to the company's financial woes.
These actions coincide with the closure of five store locations across southern Colorado earlier this year. Founder Bill Conkling attributed the closures to “unforeseen challenges,” but the broader financial struggles suggest deeper issues.
Contempt of Court and Arrest Warrants
In a further blow, an El Paso County judge issued arrest warrants for Maggie’s Farm’s CEO, CFO, and managing partners after they failed to appear in court for a show-cause hearing. The hearing was tied to a civil case from Raven Security Group, which claims the company breached a contract for security services at three locations, leaving a debt of over $350,000. Despite writs of garnishment, only a fraction of this debt has been recovered.
Continued non-compliance led the judge to issue the contempt warrants, which could result in jail time if the company’s executives fail to meet future court requirements. Raven Security’s attorney warned that a potential bankruptcy filing could further complicate matters, leaving creditors with minimal recoveries.
Industry-Wide Challenges
Maggie’s Farm’s troubles reflect larger challenges within the cannabis industry, especially in states like Colorado, where falling prices and increased competition have significantly impacted sales. The company’s reliance on cash transactions—a necessity in an industry still limited by federal banking restrictions—has only added to its financial instability.
Conclusion
With regulatory violations threatening its New Mexico operations and legal entanglements in Colorado adding financial pressure, Maggie’s Farm is facing a tough road ahead. The company’s fate remains uncertain as it navigates the consequences of non-compliance, mounting debts, and a declining market. Without significant restructuring or new strategies, Maggie’s Farm may be headed for a dramatic transformation or, worse, a total shutdown.
