Nevada’s newly minted Cannabis Compliance Board voted Tuesday to strip more than a dozen licenses from one of the state’s largest cannabis companies, which has been plagued by accusations of fraud, unpaid taxes and more in recent years.
In its inaugural meeting, the board — which officially took over cannabis enforcement on July 1 — also approved a new set of permanent regulations for the industry and lifted a freeze on the sale or transfer of cannabis licenses that had been in place since last fall after it was revealed that foreign nationals tried to buy political influence to enter the industry in Nevada.
The board voted 2-0 to approve a settlement agreement with CWNevada, with board member Dennis Neilander abstaining from the vote because the law firm he works for, Kaempfer Crowell, has represented the company in the past. Neilander noted that he himself has not represented the company and has never had a cannabis industry client.
According to the disciplinary settlement that laid out 21 violations by the company, CWNevada had failed to pay taxes to the state for nine months, sold cannabis products that either did not match or were not at all in the state’s seed-to-sale tracking system, sold products without proof that they had been tested for potency or toxins and heavy metals beforehand, failed to tag more than 4,000 cannabis plants with tracking numbers, hid or destroyed evidence and lied to the department.
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