The state of Nevada just got its very own Cannabis Compliance Board, which didn’t waste in time in punishing wrong-doers. During the Board’s inaugural meeting on Tuesday, July 21, vertically-integrated cannabis operator CWNevada was penalized for violating various regulations set out by the state.

Based on a report published by the Las Vegas Review-Journal, Nevada’s Cannabis Compliance Board (NCCB) ordered CWNevada to pay a cash fine and face asset-related forfeitures as a result of 21 alleged violations; e.g. improperly using the state’s MJ inventory track-and-trace program and failure to pay state taxes, in addition to being dishonest with Nevada’s cannabis regulators.

Included in the list of penalties was a $1.25 million fine, the obligatory sale of eight additional licenses and the withdrawal of six business permits. The company was also accused of selling cannabis products that have not been tested; those products would have been sold to customers inside Las Vegas-based Canopi dispensaries.

About the Nevada Cannabis Compliance Board (NCCB)

Responsible for providing oversight across Nevada’s recreational cannabis industry – which became active in January 2017 – the NCCB deals with various facets of public health, licensing and business operation regulation. The board ordered the defendant to pay a penalty for its actions during the recently-held inaugural meeting.

Dispensaries aside, CWNevada also operates cultivation and production facilities in various parts of Nevada. Since members of the Board have a duty to ensure that cannabis license-holders are carrying out their day-to-day operations to the highest ethical standards, it makes sense that CWNevada would have to give up some of its licenses.

Three other dispensaries investigated by Nevada Cannabis Compliance Board

It’s not just CWNevada that is feeling the heat from cannabis regulators in Nevada. The NCCB is also investigating other dispensaries across the state that continued selling Cherry OG F3 – a cannabis product that did not pass laboratory testing – after orders were given by the Department of Taxation and CCB on March 5.

All of Nevada’s licensed cannabis dispensaries and retail stores were on the receiving end of the issued order, which was stamped as urgent due to the products containing harmful contaminants; such as Aspergillus, coliforms, Enterobacteriaceae, mold and yeast. 

Despite being asked to take action, Waveseer of Las Vegas, LLC (Jenny’s Dispensary), Paradise Wellness Center, LLC (Las Vegas ReLeaf) and Desert Aire Wellness, LLC (Sahara Wellness) carried on advertising/selling Cherry OG F3 to customers. Combined, these stores sold around 375 grams of the tainted product from May 19 and June 29.