Michigan revokes 20 marijuana grower licenses for company's 'egregious conduct'

(FOX 2) - A mid-Michigan-based company had 20 grower licenses revoked for ‘egregious conduct’ after it shipped dirt and mulch while claiming it was marijuana flower. 

GP Holdings LLC, which operated in Michigan as Millie Montana Industries, was also fined $2 million by the state. 

The violations were uncovered at the company's facilities in Clare, located at 9684 Russell Road.

‘Egregious conduct’

Big picture view:

The Cannabis Regulatory Agency revoked 20 Class C grower licenses that had been held by a limited liability company doing business in Michigan.

An investigation by the CRA found GP Holdings transferred packages to a licensed processor under manifests that identified the contents as marijuana flower. 

The material that was tested resembled dirt and mulch, according to a release from the department.

More tests of other packages that were being distributed "appeared to be shake, kief, or post-harvest plant waste" despite being identified as marijuana flower.

There were other violations that were uncovered, which led to a $2 million fine.

"Shipping dirt and mulch under manifests identifying it as marijuana flower is egregious conduct that strikes at the integrity of Michigan’s regulated marijuana market," said CRA Executive Director Brian Hanna. "The statewide monitoring system depends on licensees accurately reporting what they grow, possess, and transfer. When a licensee misrepresents its product, disregards tracking requirements, and fails to maintain basic safeguards, the consequences must reflect the seriousness of that conduct."

‘Numerous violations’

Dig deeper:

The other violations found at the company's operations included:

• Incorrect product descriptions and weights on transfer manifests.
• Untagged marijuana flower, mulch, ground plants, and biomass stored in bags, bins, barrels, and outdoor storage units.
• The transfer of untested marijuana packages to a processor without CRA approval.
• The replacement of nonviable plants with seeds brought into the facility without transfer manifests.
• Inaccurate and delayed entries in the statewide monitoring system.
• Storage units without alarm systems, adequate surveillance coverage, or commercial-grade locks.
• Failure to maintain the required surveillance recordings.
• Failure to provide required standard operating procedures, employee records, and a waste-disposal plan.
• The addition of storage units, an industrial hemp dryer, and an industrial grinder without CRA approval.