Holistic Industries LLC, a licensed cannabis grower in Maryland, has been fined $65,000 and placed on six months of probation. This decision came from the Maryland Cannabis Administration (MCA) after an investigation uncovered employee theft and various violations of state cannabis regulations.
The MCA’s investigation began in February 2024, prompted by an anonymous complaint. It revealed that an employee, referred to as Agent E.W., diverted cannabis products for unauthorized distribution. Surveillance footage showed this employee removing sealed cannabis products from the facility on multiple occasions.
Further findings indicated that Holistic Industries failed to maintain accurate cleaning and equipment maintenance logs, lacked proper inventory controls, and did not follow its own standard operating procedures regarding security and video surveillance. The company’s internal investigation also uncovered that security cameras were obstructed and there were discrepancies in inventory records.
The MCA determined that Holistic Industries violated several sections of the Code of Maryland Regulations (COMAR). These violations included improper inventory maintenance, failure to secure cannabis products, and deviations from their own standard operating procedures concerning video surveillance, inventory, and security.
In a consent order, Holistic Industries agreed to pay the fine and accept probation to avoid a full administrative hearing. As part of the probation, key management personnel are required to complete advanced training courses and quizzes related to cannabis cultivation and inventory management. The company is also obligated to provide monthly inventory reports to the MCA.
To address the issues, Holistic Industries has taken several corrective actions. This includes terminating the employees involved, hiring new management, implementing enhanced security measures, and conducting a full inventory audit. Additionally, they submitted a corrective and preventative action plan to the MCA as part of the consent order.
