Michigan cannabis regulators revoked a prominent MMJ cultivator’s licenses for violations including allegedly shipping dirt and mulch labeled as marijuana flower.
The state Cannabis Regulatory Agency also fined Clare, Michigan-based GP Holdings, doing business as Millie Montana Industries, $2 million, the agency said in a press release Tuesday.
“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 in a statement.
It’s the second $2 million fine, the biggest ever imposed in the state, the CRA has issued in recent weeks. On Sept. 16, the CRA also fined Michigan Investment 10, a manufacturer of the popular brand Muha Meds, and revoked its processing license after finding evidence of possible diversion.
Millie Montana Industries claimed at one time to be the biggest woman-owned cannabis licensee in Michigan.
The company has been closed since 2025 “due to risks involved in the market,” its owner, Amelia Yousif, told the CRA.
Did a Michigan marijuana company ship dirt claiming it was cannabis flower?
The CRA began investigating Millie Montana in 2022 after it requested video surveillance during several product transfers and was told that the footage did not exist.
Samples from three packages sent to a processor contained no THC and resembled and had the “consistency of dirt and mulch,” the news release stated.
Samples from additional packages appeared to be shake, kief or post-harvest plant waste despite being identified on the manifests as marijuana flower.
Later investigations found Metrc irregularities, the CRA said.
In his statement, the CRA’s Hanna said the situation was serious.
“When a licensee misrepresents its product, disregards tracking requirements and fails to maintain basic safeguards, the consequences must reflect the seriousness of that conduct,” he said.
What did Michigan marijuana regulators find at Millie Montana?
The CRA investigation also found other violations, including:
- Incorrect product descriptions and weights on transfer manifests
- Untagged marijuana flower, mulch, ground plants and biomass
- Untested marijuana packages transferred to a processor without CRA approval
- Storage units without alarm systems, adequate surveillance or commercial-grade locks
- Inaccurate and delayed entries in the statewide monitoring system
- Failure to provide required standard operating procedures, employee records and a waste-disposal plan
- Adding storage units an industrial hemp dryer and industrial grinder without CRA approval
With 2025 revenue of about $3.17 billion, Michigan is one of the largest cannabis markets in the U.S. by sales.
It also has spent years dealing with oversupply and falling wholesale prices.
