Company vows to sue over damages after New Mexico authorities destroy cannabis crops

State police have destroyed tens of thousands of pounds of marijuana plants at greenhouses in northwestern New Mexico, marking what regulators say is the largest seizure and destruction of cannabis in New Mexico since new possession and cultivation laws took effect in 2021.

Authorities announced the operation Monday, saying dozens of agents were assigned to eradicate the plants in October. The state Cannabis Control Division had started the process of revoking the license of NNK Equity LLC, having filed a noncompliance order and a default order earlier this year.

The company was accused of not posting its licenses on site, failing to obtain water rights for cultivation, not having cameras that could monitor certain areas of its operation and violating sanitation and health requirements.

“The organization involved showed a blatant disregard for the laws of this state and we will prove that once this investigation is over,” New Mexico State Police Chief Troy Weisler said in a statement.

Jacob Candelaria, an Albuquerque attorney who represents NNK Equity, disputed the state's claims and accused regulators and state police of violating his client's civil rights. He said the state failed to properly serve notice of its intent to revoke the company's license and subsequently denied a request for a hearing on the merits of the case.

He said clients Irving Lin and Bao Xue speak Mandarin Chinese and have limited ability to understand the written English language. Lin asked for a Chinese translation, but the attorney said regulators did not respond to his request.

The Cannabis Control Division stated in filings related to the case that it complied with notice and hearing requirements and had afforded the company its due process rights.

The company plans to ask a state district judge to set aside the order revoking the license and to order state regulators to hold a hearing, Candelaria said. He added that NNK Equity also plans to sue the state for destroying what he said amounted to hundreds of thousands of dollars of private property.

“The idea that law enforcement officers can destroy public property based upon a temporary restraining order — which can be entered without notice to all parties and before a hearing on the evidence — which was the case here, should concern all of us who believe in the Constitution.”

According to state regulators, NNK Equity was issued a license in December 2023 for a marijuana growing operation at a property in Waterflow, a rural area on the edge of the Navajo Nation and just south of the Colorado border. The region also made headlines earlier this year when state regulators cracked down on two other operations and Navajo Nation authorities ended up filing their own charges against two tribal members.

In the latest case, the Cannabis Control Division conducted a compliance check in June and determined that NNK Equity had exceeded its allotted plant count. The New Mexico State Police Special Investigations Unit was brought in and later found plants at a second location that was not licensed.

The violations outlined by state regulators also involve transportation and tracking requirements, which include assigning identifying numbers to each plant.