Maine’s Congressional Delegation urges DOJ to crack down on Chinese-owned cannabis operations in state

Wed, 01/31/2024 - 9:45am

    U.S. Senators Susan Collins and Angus King, and U.S. Representatives Chellie Pingree and Jared Golden continue to urge the U.S. Department of Justice to crack down on illegal Chinese-owned marijuana operations in Maine. In a letter to Attorney General Merrick Garland, the Delegation highlights the increasing number of illegal growing operations that are detrimental to Maine businesses that comply with state laws.

    “We write to follow-up to our August 23, 2023, letter regarding reports of a memo that was produced and circulated by Border Patrol officials over alleged illegal Chinese marijuana growing operations in the state of Maine,” the letter said. “Since that time, there have been multiple raids across the state; since the beginning of this year, police have arrested eight people and seized more than 4,400 cannabis plants at four growing sites in Belgrade, China, and Cornville, Maine.”

    The Delegation said: “We applaud Maine law enforcement for their continued efforts to investigate and shutdown these illegal operations, and we encourage the Department of Justice  and other federal partners to provide additional support for these efforts. These illegal growing operations are detrimental to Maine businesses that comply with State laws, and we urge the DOJ to shut them down.”

    Last August, the Delegation sent an initial letter to the DOJ asking the agency to address the illegal growing operations run by foreign governments or entities. At the time, media reports indicated that there were 270 suspected Chinese illegal marijuana growing operations in Maine worth an estimated $4.37 billion, the Delegation said.

    The Cannabis Legalization Act, passed by Maine voters in 2016, established a regulatory framework governing adult cannabis use in Maine. The legislation specifies regulations for tracking cannabis plants and product, enforcement and compliance, health and safety data, labeling and packaging, and licensing and fees.

    The full text of the letter follows:

    Dear Attorney General Garland:

    We write to follow-up to our August 23, 2023, letter regarding reports of a memo that was produced and circulated by Border Patrol officials over alleged illegal Chinese marijuana growing operations in the state of Maine. Since that time, there have been multiple raids across the state; since the beginning of this year, police have arrested eight people and seized more than 4,400 cannabis plants at four growing sites in Belgrade, China, and Cornville, Maine.

    According to the Border Patrol memo, law enforcement in the state have identified 270 suspected properties that have been used as illegal Chinese growing operations, producing an estimated $4.37 billion in revenue. We applaud Maine law enforcement for their continued efforts to investigate and shutdown these illegal operations, and we encourage the Department of Justice (DOJ) and other federal partners to provide additional support for these efforts. These illegal growing operations are detrimental to Maine businesses that comply with State laws, and we urge the DOJ to shut them down.

    Maine towns and legally operated dispensaries have been seeing and feeling the impacts of these illegal operations. While these illegal operations may be secretive, they are often not hard to spot for neighbors in these tightknit communities; the arrests and seizures in Belgrade occurred when state troopers executed search warrants following “community complaints.” Additionally, court documents from a case in Carmel, Maine, shows that the house rented by one defendant was billed $6,900 a month for power—indicating a large-scale operation. These illegal operations may be impacting legally run dispensaries that are diligently complying with Maine state laws—one dispensary owner estimates that these illegal growers are selling marijuana for half the price that she purchases product from ‘by-the-book’ growers. This cost differential is unfair.

    While we are glad that Maine law enforcement is making progress to identify and shut down illegal operations, the scale of these reported operations within the state is alarming and requires immediate action. We again reiterate our previous request for additional information about what the DOJ is doing to address this situation. We request answers to the following questions:

    1.      What is the DOJ doing to address illegal growing operations, including illegal growing operations that are run by foreign governments or entities?

    2.      These reports identify Chinese ownership. Is the DOJ aware of this alleged Chinese ownership or any other foreign involvement in these operations?

    3.      Are the profits from these illegal operations being returned to the country of origin?  If so, through what mechanisms?

    4.      Please provide any additional information about the memo identified in these reports, including who produced it, when the information contained in the memo was first obtained, and what actions have been taken in response?

    5.      What action is the DOJ taking to swiftly shut down any illegal marijuana growing operations in the state of Maine?

    6.      What support is DOJ providing to Maine law enforcement agencies (state, county, and municipal) as they work to identify and arrest those participating in illicit activity related to illegal marijuana growing operations?

    7.      What, if any, additional support does DOJ need from Congress to support Maine law enforcement in these efforts?