Detroit Dispensary Owner Banned for Non-Compliance with State Regulations

December 14th, 2023 Business & Industry
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In a significant enforcement action by Michigan's Cannabis Regulatory Agency (CRA), Anthony Czuchra, the owner of The Reef dispensary in Detroit, along with Clark Street Investment Group Inc., has been officially prohibited from holding a business license in the state's cannabis industry. This decision follows the discovery that The Reef was engaging in the sale of cannabis to individuals without a medical marijuana card.

The CRA's Exclusion List, which documents entities barred from participating in Michigan's cannabis market, now includes Czuchra and his business. This move comes after a complaint filed in October 2022 alleged that The Reef was conducting unauthorized sales of marijuana. Subsequent to this complaint, CRA officials conducted an unannounced inspection in November, where they uncovered a series of regulatory infractions.

These violations were extensive and varied. The Reef was found to be inaccurately tracking transactions, selling unrecorded marijuana products not registered with the state, and improperly consuming food and beverages in areas designated for storing and processing marijuana products.

Clark Street Investment Group Inc. and The Reef join other entities like Candid Labs, Klean Herbal Solutions, and Pharmaco on the CRA's voluntary exclusion list, highlighting the strict regulatory environment in Michigan's cannabis industry.

During the CRA's visit to The Reef, officials discovered several concerning practices in the dispensary's storage room. These included improperly labeled products, loose cannabis flower on trays, and instances of product contamination by the owner himself while rolling pre-rolled joints. Notably, Czuchra admitted to altering the strain names of certain cannabis products, changing 'Banana Runtz' to 'Grinch Mints' for the holiday season, a clear violation of state policy.

This incident underscores the rigorous standards set by Michigan's regulatory bodies for cannabis businesses and serves as a cautionary tale for other operators in the industry.

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