SALINAS — A judge ordered Salinas-based cannabis businesses Fuji Farms Inc. and Hands on Faith Association, as well as their former CEO Paul King, to pay a total of $2.4 million for growing cannabis without the proper licenses.
In a press release, the Monterey County District Attorney’s Office stated a default judgment was issued last week following three years of negotiations and litigation. Fuji Farms was ordered to pay $375,760 and Hands on Faith Association was ordered to pay $2,038,424.20. The DA’s Office stated King is personally liable for the entire judgment based on his role as CEO of the company and his involvement in the day-to-day operations and violations.
“The Monterey County District Attorney’s Office consumer protection unit is committed to ensuring fair competition in the licensed cannabis industry,” the DA’s Office said in the press release.
According to the DA’s Office, Fuji Farms operated a 75,000-square-foot outdoor cannabis cultivation between 2018 and 2019 without state licenses or local permits to engage in cannabis activity. During this period, the company harvested and processed thousands of illegal cannabis plants.
In early 2019, Hands on Faith’s temporary cannabis cultivation licenses expired. Shortly thereafter, King acquired the company and continued cultivating without renewing the licenses and permits. King sold over $1 million worth of illegal cannabis grown at Hands on Faith during this time through his licensed business, California New Wave.
The DA’s Office said investigators learned of the violations in this case while conducting routine regulatory inspections, authorized under state law and county regulation. All illegal cannabis discovered during these inspections was confiscated and will be destroyed.
California New Wave eventually ousted King as CEO of all its associated companies, and its operations in Salinas are now under new management and ownership. Additionally, California New Wave agreed to pay $150,000 in civil penalties as part of its negotiated stipulated judgment with the DA’s Office.
Source: www.mercurynews.com