The Michigan Cannabis Regulatory Agency (CRA) has initiated formal legal proceedings against One Love Labs, LLC, an adult-use cannabis processor operating under license number AU-P-000519. Located at 1271 Eden Way, Suite P in Chesaning, Michigan, the business faces serious allegations that could lead to significant penalties, including fines, license suspension, or even revocation.
The CRA's complaint, filed on July 31st, 2024, accuses One Love Labs of multiple violations of the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and associated administrative rules. These allegations are based on findings from a CRA investigation that began in June 2024.
The formal complaint outlines several critical violations:
Improper Transfer and Mislabeling: On June 25th, 2024, One Love Labs accepted a shipment of 50,067 grams of product identified as CBD isolate. However, the CRA determined that the product was actually cannabis. The shipment originated from an Oregon-based industrial hemp processor, not a licensed cannabis business, and was delivered via UPS, bypassing Michigan's requirement for secure transport by a licensed provider.
Mixing of Products Without Proper Testing: The CRA alleges that One Love Labs mixed the received isolate with five grams of THCA oil they had produced. This new mixture was labeled and logged in Michigan's statewide monitoring system (Metrc) under a new tag, but without ensuring all necessary compliance tests had been passed before creating the new product.
Non-Compliance with Testing Protocols: During an inspection on June 29th, 2024, CRA agents found that the company had failed to properly sample and test the combined product. Video surveillance indicated that samples were taken only from one bucket, while the other nine remained sealed. This improper sampling resulted in incomplete and unreliable testing, which is a direct violation of the state's strict testing regulations.
Premature Transfer of Product: Despite pending test results, One Love Labs transferred all 10 buckets of the questionable isolate back to the originating Oregon processor on July 3rd, 2024, in an apparent attempt to avoid further scrutiny.
The CRA's complaint underscores the potential penalties One Love Labs could face, including the suspension, revocation, or restriction of their operating license. The CRA also has the authority to refuse license renewal or impose significant fines. One Love Labs has the right to request a hearing within 21 days of the complaint to contest the allegations or negotiate a compliance agreement.
One Love Labs must decide how to respond to the complaint, whether by requesting a hearing or attending a compliance conference to discuss the allegations and potentially resolve the issues without further legal action. If they fail to respond, the CRA will proceed with a contested case hearing to determine the appropriate sanctions.
These allegations against One Love Labs, if proven, highlight the importance of strict adherence to Michigan's cannabis regulations and the potential consequences for those who fail to comply.
The Cannabis Regulatory Agency (CRA) has formally filed multiple complaints (1, 2, 3, 4) against Hongrui Enterprises, Inc., a medical cannabis cultivation business located at 1100 Industrial Blvd., Albion, Michigan. The complaints highlight a series of alleged violations of the Medical Marihuana Facilities Licensing Act (MMFLA) and related administrative rules, potentially leading to severe sanctions, including fines, suspension, or even revocation of the company's licenses.
Hongrui Enterprises holds four active, stacked Class C medical marijuana grower licenses, which allow the company to cultivate a specific number of plants under Michigan law. According to the CRA, the company has committed numerous violations, as detailed in their formal complaint:
Surveillance System Issues: During an August 2023 site visit, CRA investigators discovered that the Michigan State Police had seized Hongrui's surveillance system, leaving the facility without video monitoring capabilities. Despite this, the business continued to operate without a functioning surveillance system. When CRA investigators returned in November 2023, the surveillance issues persisted, with cameras not recording and no employee on-site who could operate the equipment.
Unsecured Facilities: The complaints describe a facility that failed to meet basic security requirements. In multiple inspections, investigators found grow rooms and other sensitive areas left unlocked, allowing unauthorized access. Garage doors were also left partially open and inadequately secured, presenting additional security risks.
Untracked and Untagged Cannabis: Investigators found a significant number of untagged and untracked cannabis plants. During the initial inspection, 3,171 untagged plants were discovered, far exceeding the number allowed under Hongrui's licenses. By March 2024, the number of plants had ballooned to 10,738—more than double the permitted amount.
Fire Safety Violations: The Bureau of Fire Services (BFS) conducted inspections in March and April 2024, revealing numerous fire code violations. These included unsafe electrical work, obstructed exits, and a disabled fire protection system. The lack of a working fire protection system and unauthorized modifications to the facility raised significant safety concerns.
Improper Storage and Handling of Chemicals: The CRA found chemicals improperly stored in various locations throughout the facility. These were not secured in locked storage areas as required by regulations, further compounding the facility's non-compliance.
Failure to Comply with Regulatory Requirements: Hongrui Enterprises reportedly failed to maintain proper documentation, including employee records and Standard Operating Procedures (SOPs), and did not conduct required criminal background checks on prospective employees. The company also did not report material changes to their operations, such as the installation of new LED lighting, to the CRA as mandated.
Given the scope of the violations, the CRA has indicated its intent to impose substantial penalties, which could include fines, suspension, revocation, or refusal to renew Hongrui's licenses. The agency has provided Hongrui with the opportunity to request a hearing or a compliance conference to discuss the allegations and potentially mitigate the consequences. However, if the company fails to respond within the designated timeframe, a contested case hearing will be scheduled to resolve the matter.
These allegations, if proven true, underscore serious lapses in compliance and operational standards at Hongrui Enterprises, potentially jeopardizing both public safety and the integrity of Michigan's regulated cannabis industry.
In downtown Bay City, a Mercedes-Benz with Wisconsin plates sat idling for hours with two men inside, unconscious and mouths agape. When police responded, they discovered the vehicle filled with cannabis products valued at nearly $100,000, along with an assault rifle and a handgun.
The cannabis haul, as it turned out, originated from a defunct Bay City dispensary that had reported to state regulators that its inventory was destroyed. How the two men from Wisconsin obtained the product remains unclear, but they now face a dozen charges between them.
This marks at least the third time this year that one of the men has been arrested on cannabis-related charges outside his home state. In a previous incident, he was arrested for allegedly lighting a cannabis joint near the baggage terminal of a Florida airport.
The incident began on July 16th, when police were dispatched around noon to the area of Second Street and Washington Avenue near the former Prime Event Center in Bay City. The report concerned two men slumped over in a parked white Mercedes-Benz, which was still running.
When officers approached the vehicle, they noted the back seat was "filled to the roof" with black garbage bags. Upon knocking on the windows, the driver, Caleb J. Trostle, woke up and claimed he and his passenger were just sleeping. The passenger, Jaden M. Spatz, struggled to keep his eyes open and spoke incoherently, according to police reports.
Trostle, 27, told officers that he and Spatz, 22, were in town for walleye fishing and were simply tired. Spatz refused to identify himself.
When Trostle provided a false name and birthdate, officers arrested him. Trostle, who was carrying $778.12 in cash, declined to speak further after being read his Miranda rights.
Spatz was also detained and taken to jail, where his condition worsened, prompting officers to take him to McLaren Bay Region hospital. During a search of the vehicle, officers found an open alcoholic beverage in the center console, a loaded Smith & Wesson 9mm handgun in the console, a loaded PTAC AR-15 rifle, 41 vacuum-sealed bags each containing about one pound of cannabis flower, hundreds of THC gummies, vapes, tinctures, and 12 jars of THC-infused peanut butter.
In the trunk, officers discovered burglary tools, including an angle grinder, hammers, prybars, wrenches, pliers, and a welding helmet.
Two construction workers in the area had reported the idling car with the unconscious men inside around 9:30 a.m. Police later confirmed with the state's Cannabis Regulatory Agency that the THC products came from a Bay City dispensary that had closed down and reported its inventory destroyed on June 15th.
When contacted, the dispensary's landlord stated that the owner had not paid rent for over a year and had been unresponsive. The owner, living in Canton, declined to speak with police regarding a possible break-in.
The day after his arrest, Spatz made a phone call from the Bay County Jail to a woman in Wisconsin, claiming he had been set up. The woman, however, expressed no sympathy, questioning him about the cannabis and criticizing his lack of caution.
Police estimated the total value of the 37.36 pounds of cannabis flower and other THC items at $82,181.26.
Both Trostle and Spatz have been arraigned in Bay County District Court on six charges each, including manufacturing between 20 to 200 cannabis plants, carrying a dangerous weapon with unlawful intent, carrying a concealed weapon, possession of a loaded firearm in a vehicle, and two counts of felony firearm.
The most serious charge, related to cannabis manufacturing, carries a maximum penalty of seven years in prison. A felony firearm conviction requires a minimum two-year prison sentence served consecutively to any related sentence.
As of August 14th, both men remain in Bay County Jail on $150,000 bonds.
Spatz was previously arrested on March 29th in Okaloosa County, Florida, after allegedly lighting a cannabis cigar at an airport baggage terminal. By June 12th, he was arrested again in Porter County, Indiana, on additional cannabis and gun-related charges. After posting a $1,500 bond, Spatz failed to appear for a July 23 court hearing as he was already in custody in Bay County.
Both men are scheduled for a preliminary examination on August 27th.
A lawsuit alleging that a Michigan township unlawfully blocked the establishment of a cannabis dispensary has been settled. The parties involved, including a cannabis entrepreneur and local developers, have agreed to resolve the case against the township.
U.S. District Judge Susan K. DeClercq dismissed the case with prejudice following a joint motion for voluntary dismissal filed by the township of Lima and the group known as Citizens of Lima for Cannabis. The motion was submitted on August 5, and the judge issued the dismissal order the next day.
Originally filed in March, the lawsuit claimed that Lima's board of trustees engaged in a prolonged effort to prevent the opening of a cannabis dispensary. The complaint highlighted the involvement of several local entrepreneurs and real estate developers as well as Andrew Sereno, CEO of Michigan-based Glacier Cannabis, as key figures in the effort. The lawsuit accused the township of violating both the 14th Amendment and Section 1983 of the U.S. Code, which protect against civil rights infringements.
Details regarding the settlement agreement have not been made available in the court records.
Both the legal representatives for Citizens of Lima for Cannabis and the township of Lima declined to comment on the resolution of the lawsuit.
A Montana intellectual property attorney and his wife, attempting to recover losses from an alleged investment scam, have mistakenly targeted a Michigan cannabis company that was also a victim, according to the company's statements on Wednesday.
Cherry Industries LLC, a cannabis company based in Michigan, has initiated a lawsuit in federal court. The suit contends that false information has been disseminated through social media and misleading "tips" have been sent to Michigan cannabis authorities.
The legal action comes after a series of incidents involving a man who allegedly posed as a "highly successful entrepreneur," deceiving both Cherry Industries and the couple, Brian Pangrle and Silvia Marie Lazo. According to the lawsuit, both parties lost money investing with Lalit Kumar, who also used the alias Lalit Verma. Kumar's real identity remains uncertain due to the use of multiple passports and identities.
"Despite being caught up in one of the same Kumar/Verma schemes that damaged Cherry's own owner, even as defendants struggled to obtain justice through their putative class action they turned their sights on Cherry," the complaint stated. Pangrle and Lazo had filed a class action lawsuit in February 2021, accusing Kumar of defrauding investors. However, the case was halted after one of Kumar's businesses declared bankruptcy in October 2021.
Cherry Industries claims that Pangrle and Lazo have embarked on a "years-long scorched earth campaign" against them, mistakenly believing that targeting Cherry would harm Kumar/Verma. The lawsuit details how Kumar approached Cherry as a potential investor, claiming to have significant funds tied up in Chinese businesses. He managed to become involved with Cherry, convincing its owner, Clint Cerny, a former automotive executive, to invest in a personal protective equipment company, Future Health Technology LLC, at the start of the COVID-19 pandemic.
Kumar's promises about innovative protective face masks produced by Future Health were allegedly false, leading to significant financial losses for investors. Cherry Industries claims Kumar falsified scientific claims about the masks, pocketed the investments, and declared bankruptcy to avoid liability. Both Future Health and another of Kumar's companies, Redcliffe Medical Devices Inc., were registered at the same address in Southfield, Michigan.
Cherry Industries also asserts that they were named in a February 2021 Chapter 7 bankruptcy petition for Redcliffe. Kumar's attorneys falsely claimed to represent Cherry in these proceedings. The lawsuit notes that Lazo is listed as an unsecured creditor in the Redcliffe bankruptcy documents, which list numerous individuals financially involved with Kumar's face mask ventures.
Since late 2020, Pangrle and Lazo have allegedly implied or stated to third parties that Kumar/Verma owned or controlled Cherry Industries, accusing the company of being part of Kumar's fraudulent activities in widely shared social media posts. Cherry also claims that Pangrle and Lazo have repeatedly contacted the Michigan Cannabis Regulatory Agency, misleading regulators about Cherry's ownership. The cannabis industry requires clear and vetted ownership due to its heavy regulation, making these accusations particularly damaging.
Furthermore, Pangrle and Lazo have allegedly made false claims on social media that Cherry Industries uses the herbicide glyphosate in cannabis cultivation, suggesting the company's products are tainted or unsafe. Cherry Industries denies these allegations and argues that these falsehoods have caused substantial damage to their reputation and operations.
Cherry Industries is pursuing legal action for defamation, injurious falsehoods, and common law conspiracy. Brian Pangrle, a practicing intellectual property attorney based in Burbank, California, is licensed to practice law in California, New Mexico, and the District of Columbia.
A 15-year-old from Royal Oak was arrested in connection with two break-ins, including one at a cannabis dispensary. According to police, the incident occurred early Saturday morning at the Gatsby Cannabis Company on Meijer Drive near 14 Mile and Coolidge.
The police reported that the teenager smashed a window to gain entry into the dispensary and proceeded to ransack the building. The suspect stole more than $100,000 worth of cannabis and related products.
During a search of the teen's home, investigators discovered the stolen cannabis products and related merchandise. The teen is also suspected of fleeing from a Royal Oak officer in a high-speed chase before the dispensary burglary.
Authorities have charged the teenager with breaking and entering a business and third-degree fleeing and eluding. He is currently detained at Oakland County Children's Village. If convicted of the charges, the teen faces up to 10 years in prison for the break-in and an additional five years for fleeing and eluding.
Investigators also believe that the teen was involved in a home burglary on July 26th in the 800 block of McLean. However, no charges related to the home invasion have been announced yet.
"Our investigators quickly identified the suspect in this case and worked as a team to safely arrest this juvenile suspect and recover an astounding amount of evidence," said Royal Oak Police Chief Michael Moore.
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