Holistic Industries LLC, a licensed cannabis grower in Maryland, has been fined $65,000 and placed on six months of probation by the Maryland Cannabis Administration (MCA) following an investigation that revealed employee theft and violations of state cannabis regulations.
According to documents released by the MCA, the investigation, which began in February 2024 after an anonymous complaint, uncovered instances of an employee diverting cannabis products for unauthorized distribution. Surveillance footage confirmed the employee, Agent E.W., was observed on multiple occasions removing sealed cannabis products from the facility.
Further investigation revealed that Holistic Industries had also failed to maintain accurate cleaning and equipment maintenance logs, lacked proper inventory controls and did not adhere to its own standard operating procedures regarding security and video surveillance. Notably, the company’s internal investigation revealed that security cameras were obstructed and inventory discrepancies were found.
MCA determined that Holistic Industries violated several sections of the Code of Maryland Regulations (COMAR), including those related to inventory control, security, and record-keeping. The violations included failing to maintain accurate cleaning logs, improper inventory maintenance, failing to secure cannabis products, and deviating from their own SOPs regarding 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 must also provide monthly inventory reports to the MCA.
Holistic Industries took steps to mitigate the issues, including terminating the employees involved, hiring new management personnel, implementing enhanced security measures and conducting a full inventory audit. They also submitted a corrective and preventative action plan to the MCA, according to the consent order.
