New Mexico Authorities Take Action Against Elite Steel Company for Multiple Violations
Albuquerque, NM – The (CCD) of the New Mexico Regulation and Licensing Department has issued a Notice of Contemplated Action against Elite Steel Company LLC and its controlling person, Adam Oakey, for a series of regulatory violations. The company is facing potential license revocation, suspension, or fines if the infractions are not addressed.
The violations stem from inspections conducted on December 18, 2023, and January 8, 2025, which revealed numerous compliance failures at the company’s facility. Below is a summary of the infractions:
List of Violations
Unlicensed Operations – The company was found cultivating and processing products despite failing to renew its license due to unpaid state taxes.
Lack of State and Local Permits – Inspectors found no record of a valid local business license.
No Security Alarm System – The facility lacked a functioning alarm system, including required sensors on entry points.
Inadequate Surveillance – The company's digital security system was unreliable, with gaps in recordings and failure to meet the 30-day video retention requirement.
Unapproved Water Usage – The company could not provide documentation proving the legal right to use water for cultivation.
Failure to Tag and Track Inventory – Over 160 plants and multiple large bags of product were not labeled with required BioTrack tags, making it impossible to verify if they were legally sourced.
Failure to Use the State’s Track and Trace System Properly – Major discrepancies were found between the company’s inventory records and the actual products onsite.
No Waste Disposal Plan – The company had no written procedures for properly disposing of plant waste.
No Product Recall Plan – No protocols were in place for recalling unsafe or non-compliant products.
Lack of a Cultivation Plan – Required documentation detailing production layout and processes was missing.
No Lighting Diagram – There was no map indicating the placement and wattage of grow lights.
No Pest Management Plan – The company failed to document approved pesticide use.
No Chain of Custody Records – Proper tracking of product movement was nonexistent.
No Employee Training or Workplace Policies – The company had no records of required training for safety, security, or compliance.
Onsite Product Consumption – Inspectors found evidence of employees consuming products within restricted areas.
Failure to Meet Minimum Standards for Producers – The company lacked required protocols for product testing, transportation, and contamination prevention.
Potential Consequences
Elite Steel Company LLC has 20 days to request a hearing or negotiate a settlement. If they fail to respond, the CCD will proceed with disciplinary actions, which could include license revocation, suspension, and significant fines.
This case underscores the importance of regulatory compliance for industry operators in New Mexico. Authorities have warned that businesses failing to follow established rules will face severe penalties.
