Legal Battle Looms as New Mexico Cannabis Company Challenges State’s Crop Destruction
A New Mexico cannabis grower is planning to file a lawsuit against state authorities after the destruction of tens of thousands of marijuana plants in a dispute over noncompliance. NNK Equity LLC, the company involved, claims its rights were violated in what has become the state’s most significant cannabis seizure since legalizing marijuana possession and cultivation in 2021.
The state’s Cannabis Control Division (CCD) conducted the operation in October, with dozens of agents involved in the destruction of NNK Equity’s plants. This move followed noncompliance and default orders earlier in the year, accusing the company of serious regulatory violations. These included failing to post required licenses on-site, lacking water rights for cultivation, not installing mandatory surveillance cameras, and ignoring sanitation standards.
New Mexico State Police Chief Troy Weisler emphasized the state’s strict enforcement, saying, “The organization involved showed a blatant disregard for the laws of this state, and we will prove that once this investigation is over.”
However, NNK Equity’s attorney, Jacob Candelaria, disputes these accusations, arguing that his clients’ civil rights were violated. He claims that the CCD did not provide adequate notice of the license revocation or allow a hearing before proceeding with the destruction of the plants. Candelaria further argued that the company’s owners, Irving Lin and Bao Xue, who primarily speak Mandarin, had requested a translation of the notices but did not receive one. While regulators insist they followed all legal protocols, including proper notice and hearings, Candelaria maintains that due process was not observed.
In response to the revocation of their license and the destruction of their property, NNK Equity intends to seek a judicial review to overturn the decision and demand a hearing. The company is also preparing to sue the state, claiming that the loss of the plants—valued at hundreds of thousands of dollars—was a violation of due process rights.
Candelaria criticized the process that allowed law enforcement to destroy property based on a temporary restraining order, which he argues was issued without notice or a hearing. “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—should concern all of us who believe in the Constitution,” he said.
NNK Equity, which was licensed in December 2023 to operate in Waterflow, a rural area near the Navajo Nation, has faced scrutiny for regulatory violations. In June, state regulators found that the company had exceeded its permitted plant count and discovered a second, unlicensed location. Other issues included failure to assign identification numbers to plants, violating transportation and tracking regulations.
This conflict over NNK Equity’s destroyed crops is part of a larger crackdown on the cannabis industry in New Mexico. Authorities have recently targeted other cannabis operations, and the Navajo Nation has filed charges against two tribal members. As New Mexico’s cannabis industry grows, these disputes reflect the tensions surrounding the regulation and enforcement of the new legal market.
