CLARE — Michigan cannabis regulators have revoked 20 medical marijuana grower licenses and imposed a $2 million fine — tied for the largest penalty ever issued by the Cannabis Regulatory Agency — against a Clare company after investigators found packages identified as marijuana flower that contained no THC and instead resembled dirt and mulch.
The CRA announced the enforcement action against GP Holdings LLC, doing business as Millie Montana Industries, following a years-long case involving 35 violations at its operation at 9684 Russell Road in Clare.
The $2 million fine is particularly notable because it comes just 13 days after the CRA announced another $2 million penalty against Michigan Investment 10, a Pinconning cannabis processor.
CRA spokesman David Harns confirmed to MITechNews that the two penalties are tied for the largest fines imposed by the agency.
“I know that we just issued a $2M fine for Michigan Investments 10 just last week. These two are tied as the highest,” Harns told MITechNews.
Harns said the CRA generally does not comment beyond its official releases because of the possibility of pending litigation.
CRA: Packages Contained No THC
According to the CRA, its investigation found GP Holdings transferred packages to a licensed processor using manifests identifying the contents as marijuana flower.
Samples from three packages contained no THC and, according to the agency’s findings, resembled and had the consistency of dirt and mulch.
Samples from additional packages appeared to contain shake, kief or post-harvest plant waste even though they also were identified on transfer manifests as marijuana flower.
“Shipping dirt and mulch under manifests identifying it as marijuana flower is egregious conduct that strikes at the integrity of Michigan’s regulated marijuana market,” CRA Executive Director Brian Hanna said.
“The statewide monitoring system depends on licensees accurately reporting what they grow, possess, and transfer,” Hanna said. “When a licensee misrepresents its product, disregards tracking requirements, and fails to maintain basic safeguards, the consequences must reflect the seriousness of that conduct.”
CRA Found 35 Violations
The case extended well beyond the contents of the packages.
CRA investigators identified violations involving inventory, operations, security and recordkeeping.
Among the violations identified by the agency were incorrect product descriptions and weights on transfer manifests; untagged marijuana flower, mulch, ground plants and biomass stored in bags, bins, barrels and outdoor storage units; and transfers of untested marijuana packages to a processor without CRA approval.
Investigators also cited the replacement of nonviable plants with seeds brought into the facility without transfer manifests and inaccurate or delayed entries in Michigan’s statewide monitoring system.
Security deficiencies included storage units without alarm systems, adequate surveillance coverage or commercial-grade locks and failure to maintain required surveillance recordings.
The company also failed to provide required standard operating procedures, employee records and a waste-disposal plan, according to CRA.
Investigators further found that storage units, an industrial hemp dryer and an industrial grinder had been added without CRA approval.
Company Stipulated Allegations Were True
The enforcement case dates back several years.
During an October 2025 contested-case hearing, GP Holdings stipulated that the factual allegations contained in CRA’s first superseding formal complaint were true and constituted violations of Michigan law or administrative rules.
In January 2026, an administrative law judge recommended that CRA find the company responsible for all 35 alleged violations and impose an appropriate sanction.
The first superseding formal complaint was dated Aug. 16, 2022.
The final CRA order revoked medical marijuana Class C grow licenses GR-C-000901 and GR-C-000906 through GR-C-000924 and ordered GP Holdings to pay the $2 million fine.
All 20 licenses had already been closed before the final order was issued.
CRA also said future license applications involving the company’s supplemental applicants may be reviewed in light of the violations documented in the case.
CRA Approved Other Licenses While Case Was Pending
CRA licensing records reviewed by MITechNews show GP Holdings continued to receive licenses after the August 2022 complaint underlying the disciplinary case.
On July 14, 2023, CRA approved additional medical Class C grow licenses for GP Holdings operating as Millie Montana Industries at the same 9684 Russell Road location.
CRA also approved adult-use Class C grow license AU-G-C-001282 for GP Holdings/Millie Montana Industries at that address on July 14, 2023.
CRA licensing records subsequently show the agency denied renewal of AU-G-C-001282 on July 16, 2024.
Another CRA licensing report shows the agency approved renewal of that same adult-use license on Jan. 14, 2025.
MITechNews asked CRA about the licensing history and why licenses were approved or renewed while the disciplinary proceeding involving the earlier medical licenses remained unresolved.
Harns said the agency typically does not comment outside its releases because of potential pending litigation.
The licensing records do not establish that CRA acted improperly. The disciplinary case involved specific medical licenses, while subsequent licensing actions involved other medical licenses and an adult-use license.
Second $2 Million Fine In 13 Days
The Millie Montana action follows another major CRA enforcement case involving Michigan Investment 10, which operated a cannabis processing facility in Pinconning.
On Sept. 16, CRA announced a $2 million fine, closure of the company’s adult-use processor license and revocation of its medical processor license.
CRA had summarily suspended the processor licenses on Nov. 15, 2023.
Following a Dec. 4, 2023 post-suspension hearing, an administrative law judge dissolved the summary suspension on Jan. 12, 2024. A contested-case hearing had been held Jan. 8-9, 2024.
On June 18, 2026, the administrative law judge issued a proposal for decision recommending findings that the company had violated the cited statutes and administrative rules. CRA subsequently accepted the ALJ’s findings of fact and conclusions of law.
In announcing the $2 million penalty, Hanna singled out serious surveillance failures.
“These were egregious violations, capped by the fact that their camera in the extraction room was pointed at a wall instead of the activity it was supposed to monitor,” Hanna said.
“Michigan’s cannabis laws and rules are designed to protect public health and safety and ensure accountability throughout the regulated market. When a licensee disregards those requirements to this extent, the CRA will take appropriate action.”
Two Record Fines Raise Enforcement Question
The two cases involve different companies, different licenses and different violations.
But together they represent an unusual development in Michigan cannabis regulation: according to CRA spokesman Harns, the two $2 million penalties are tied for the largest fines the agency has imposed.
And they were announced just 13 days apart.
Both cases also involved fundamental components of Michigan’s regulated marijuana system, including inventory controls, product tracking, security and regulatory compliance.
The back-to-back record fines raise a question for Michigan’s cannabis industry: whether these are isolated responses to two particularly serious cases or an indication of tougher CRA enforcement.
The agency has not said the cases represent a broader change in enforcement policy.
What is clear is the size and timing of the penalties.
In less than two weeks, Michigan cannabis regulators announced two $2 million fines — tied for the largest in CRA history — while closing or revoking licenses associated with both operations.
