Small Town, Big Violations: CCD Issues NCS in Chaparral, NM

The New Mexico CCD) has issued an NCA on Long Term Capital NM LLC, operated in Chaparral, New Mexico, for a list of infractions that reads more like a checklist of what not to do in the regulated space. After a routine inspection on October 27, 2023, the business was found to be operating in open defiance of core compliance standards. If they don’t request a hearing within 20 days, the CCD will move forward with disciplinary action—no court appeal, no second shot.

The 17 Violations:

1. No Local Business License
They were selling product and manufacturing on-site but didn’t have a local business license—at all. Even after being asked a second time, they failed to produce one.

2. No Inventory Logged in the State System
The operation had a full stash of product but zero entries in the state's inventory tracking platform. That means no way to know where the product came from, how much was sold, or where it went.

3. Unknown Product Sources
The inspectors found no paperwork showing where any of the product on site came from. No manifests. No receipts. Just product sitting there with no backstory. It could have come from anywhere.

4. No Surveillance System
There were no cameras, no monitoring, nothing to deter theft or provide oversight. It's required to have 24/7 video recording before any operation begins, but this place was flying blind.

5. Operating From an Unlicensed Vehicle
Instead of working out of an approved facility, they were selling and producing from a mobile unit—without any license for that location. This bypasses all kinds of building, zoning, and safety regs.

6. No Excise Tax Charged
They had ads and signs offering tax-free adult-use sales, which violates New Mexico’s excise tax law and gives them an unfair advantage over compliant businesses.

7. No Product Testing Documentation
There was no proof that any of the product on site had gone through required testing protocols. That’s a major health risk. If anything contaminated was sold, it’s on them.

8. No Sales Records
The team on-site couldn’t provide a single receipt, ledger, or digital record showing any transactions. That’s a huge issue for tax reporting, regulatory oversight, and accountability.

9. No Restricted Access Areas
There was no separation between the public and the product. Anyone could walk in and grab what they wanted. No locked doors, no gates, no signs—just open access.

10. No Alarm System
No audible alarms. No perimeter sensors. No emergency response setup. This place was completely unsecured, which puts the product, employees, and customers at risk.

11. No Chain of Custody Logs
Chain of custody logs are how a company shows control over its product from start to finish. This business had none. No way to track who handled the product, when, or where it was moved.

12. No Employee Training Program
There were no documented training procedures for employees—nothing about compliance, emergency protocols, or safety. No signed acknowledgments, no records.

13. No Food Handler Certifications
Any staff involved in making or packaging consumables must have ANSI-accredited food safety training. Nobody on the team had proof they completed it.

14. No Waste Disposal System
Any product that needs to be destroyed must be logged and rendered unusable. This business had no waste documentation and no system in place.

15. Mobile Vehicle Was Unsecured
The mobile unit being used as a retail and production site had holes in it, and the doors and windows were so poorly maintained that anyone could force entry with minimal effort.

16. Product Stored at an Off-Site Storage Unit
They admitted to storing inventory at an unlicensed self-storage facility. When CCD went to check, they found large amounts of untagged product stashed in violation of storage regulations.

17. Doors and Windows Didn't Meet Security Standards
The mobile unit failed even the basic test: do the doors and windows lock? Inspectors found that they didn’t. And yet the place was still stocked with commercial amounts of product.

Supporting Evidence:

• CCD inspection reports and checklists

• Testimony from CCD personnel

• Photos taken during the October 27 inspection

Next Steps:

If Long Term Capital doesn’t request a formal hearing within 20 days, the CCD will move forward with revocation, fines, or suspension. No court appeal is allowed after that point.