The medical marijuana business Champlain Valley Dispensary allegedly outsourced the growth of approximately 300 cannabis plants to a farm that wasn’t licensed to grow pot, which grew them to maturity before the dispensary returned to harvest the crop.
A lab test conducted last fall by the Agency of Agriculture, Food and Markets found that a piece of plant debris recovered at Pete’s Greens vegetable farm in Craftsbury contained 21 percent THC, the psychoactive compound found in marijuana.
The farm had a license to grow hemp plants, according to an agency document, but the legal limit for THC in Vermont-grown hemp is 0.3 percent. Plants with a higher concentration of THC are considered marijuana and are subject to strict growing regulations that require a permit, locked facilities and other security measures.
According to an Agency of Ag report obtained by the cannabis information and advocacy organization Heady Vermont, agency staff responded last October to an anonymous complaint that Pete’s Greens was growing weed. Cary Giguere, the agency’s director of plant health and resource management, said Friday in an emailed statement that the agency regularly receives such reports, but investigations usually find that the plants in question are legal hemp.
“We had multiple complaints of non-compliance over the course of the last growing season,” he wrote. “All of those cases were investigated within 48 hours of receiving the complaint. All but one of those cases proved to be hemp after the samples were tested at the Vermont Agriculture and Environmental Laboratory.”
According to the agency’s report, that sample was collected on a farm road at Pete’s Greens on October 3, 2018, just one day after Champlain Valley Dispensary staff came to the farm and finished harvesting 230 of the plants.
Agency staff interviewed Pete’s Greens business manager Amy Skelton about what they’d found. She told them the plants were the dispensary’s and that farmer Pete Johnson had agreed to grow them on his land.
In an interview Friday, Johnson said he was “totally blown away” when he learned that the sample from his farm tested at 21 percent. Johnson said he’d been in talks last spring with Champlain Valley Dispensary about the possibility of growing medical marijuana in his greenhouse space if the company got another license to grow weed. Since Johnson hadn’t done so before, “they said, OK, why don’t you grow some hemp for us?” he recalled.
“In hindsight, I should have definitely had a contract and some description of the seed stock,” Johnson said.
According to Johnson, state officials told him last October that they didn’t plan to test the samples they collected on his property, and then he never heard back. It wasn’t until this week, when a reporter for Heady Vermont showed him the results of the tests, that Johnson said he learned he’d been growing some fairly potent leaf.
In a written statement, Champlain Valley Dispensary executive director Shayne Lynn said the farm partnership was for hemp, but he didn’t explain why the plants had such a high concentration of THC.
“Since the inception of the state’s medical cannabis program, we have been strong advocates for the development of clear and beneficial testing standards for cannabis and hemp products grown in Vermont,” he wrote. “After consultation, we acted in compliance with all state laws and regulations. We appreciate the state’s thorough examination.”
Giguere, in his statement, said that the Agency of Ag referred the case to the Department of Public Safety, which houses the state’s medical marijuana registry and regulates marijuana dispensaries. The agriculture agency only regulates hemp, and Giguere said it can hold rogue hemp growers to account through its licensing system.
“Growers found not to be in compliance jeopardize their ability to apply for hemp licensure in future years if the non-compliance was found to be other than negligent,” he wrote.
Johnson said he plans to apply for another hemp license this year, though he’s partnering with a different company and has a contract and documentation of the seeds’ genetics. Giguere told him that the Ag investigation “wouldn’t have any effect on me getting a future hemp permit,” Johnson said.
It’s unclear whether the Department of Public Safety took any action in response to the agency report. An email obtained by Seven Days reveals that an Ag Agency employee emailed Public Safety Commissioner Tom Anderson the investigation and test results on November 20, 2018.
Vermont State Police spokesman Adam Silverman confirmed that Champlain Valley Dispensary is still licensed by the state but offered little more information about the matter.
“When DPS received notification of this incident from the Agency of Agriculture, Food and Markets late last year, the Department reviewed the matter for compliance with the rules and regulations of the Vermont Marijuana Registry, a component of DPS,” he wrote in an emailed statement. “We are unable to comment further at this time.”
Rep. Sarah Copeland Hanzas (D-Bradford) said she learned of the allegations Thursday evening, but the information didn’t change her view of the cannabis regulation bill under consideration by the House Government Operations Committee, which she chairs. Interviewed Friday, she said the Department of Public Safety seems more concerned with processing regulatory forms efficiently than regulating medical weed businesses.
“Maybe this is [an] indication that there hasn’t been a truly regulated market,” Copeland Hanzas said.
House Government Operations vice chair John Gannon (D-Wilmington), who has worked for the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, said the department isn’t organized like a normal regulatory agency. Most importantly, he said, there is no regulatory enforcement staff within the Department of Public Safety’s medical marijuana program.
Senate Judiciary Committee chair Dick Sears (D-Bennington) said Friday morning that the case shows the need for a fully regulated marijuana market in Vermont.
“It seems to me that the quicker we get to tax-and-regulate, the better off we’ll all be,” he said. “And these problems will all go away.”
To help stifle the illicit market for weed, Sears is pushing a policy in a separate bill that would allow the Vermont Department of Taxes to collect a $100,000 fine from anyone caught selling drugs illegally. He said that could also help in situations where businesses violate regulations.
“I don’t want to send anybody to jail, but I am in favor of having them pay taxes on their ill-gotten gains,” he said.
See the Agency of Agriculture, Food and Markets report below:
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That is a remarkably strong strain of weed. Check it out for favorable characteristics. Goose that laid the golden egg sort of thing. https://www.leafly.com/news/strains-produc…
The dispensary clearly broke the law and put a legitimate business in jeopardy. Their arrogance and lack of respect for Pete’s Greens should not go unsanctioned.
As investigated by and first reported by Heady Vermont, is what I think you meant to say.
So unfortunate that these types of articles continue to come out about the unethical practices of CVD and nothing gets done about it. You would think that hearing this would at least warrant a second consideration of the bill that would hand only the medical dispensarys the ability to legally sell recreational marijuana for the first 15 mos of tax and regulate. Is this really the company we want to be the leader of this exciting new industry? I would hope not!
I have worked there for 4 years. We never grew hemp. I am very familiar with the varieties in question. They are not hemp. We never grew hemp I repeat! He knew exactly what kind of plants they are! He had them tested in house before having them sent to Petes He was advised by the lab and cultivation managers at that time that plants were not compliant or hemp. Both the owner and Sr.Director of Production knew that they were delivering hot plants allegedly. Thats why the Sr. Director of
Production personally assisted
In the cover up harvesting the crop Himself,allegedly. They knowingly broke the law and jeopardizes peoples company and livelihood allegedly. CVDs untouchable reign must end. He cannot be so blatant in his disregard for anyones concern, the law,businesses, community and be free of impunity.
The publics hunger for a high and the potential profits that can be realized open the door to all kinds of mischief, I predict that there will many more incidents of shenanigans as the state of Vermont continues down this dark path.
More hysterics from the Hysterical Society.
C ontaminated
V illainously
D ishonorable
Johnson knew exactly what was being planted on his farm, and was most likely compensated very well for the space. Pleading ignorance is such BS. A huge fine should be issued to both to set an example that this type of activity will not be tolerated.
Shayne was the director of cultivation at the time of the illicit transaction although he knows nothing about growing the plant.. The 5 years in business he knows deep in his heart that Champlain Valley Dumpspensary never grew hemp and currently still doe Not! He and the Sr. Director of Production , the current and past supervisor knew those varieties tested over the legal limit and still handed them over to Pete alledgey. They are now on a slander campaign convincing state reps on former employees stating that people are hating on them for being innovative . A true Sociopathic statement. What about the 3rd party testing of the 21% marijuana plants found at Petes, that the current Supervisor of cultivation , shayne and dont forget the Sr. Director of production loaded up for Pete from the location that provides only Marijuana not hemp Never Hemp!? Did employees have access to those 3rd party test results aswell? Sounds like cvdump is being run like our current administration! Do Vermonters want a trumpish dispensary in VT? Seems like it.
When past employees become subpoena and disclosure of records they still possess becomes public because past employees still possess that info the truth will prevail!
Champlain Valley Dispensary should be immediately shut down for the atrocities it has committed. The mold and mildew problems have been major issues for the dispensaries cultivation facilities since opening. In house lab testing for quality and health has allowed them to remain unmonitored. The management is a joke. Refusing to use safe and effective measures to reduce and remove the problems they have always faced. The employee turn over rate is one of the few outstanding things. Putting other businesses at risk because of the dispensaries actions is beyond shameful.
These two large companies need to be held to the same standard as any other small business would be in the state of Vermont. Champlain Valley Dispensary has an obviously cozy relationship with our state legislators and policy makers. They have successfully carried out a monopolistic regime and because of this, have been able to push sub-par, over priced products to people in need. Not to mention – all employees actively despise working here and also feel trapped by their far reach across the state. This company is not representative of the “vermont way” or what we stand for. If we wan’t tax and regulate in Vermont, we can’t have our largest company obviously abusing the system and setting bad examples.
FIRST IMPRESSION SAID IT ALL
The unprofessional and scheming behavior actually doesn’t surprise me. On my first visit, I was met by two “guys” that appear like everyday lay people off the street. No professional clothing, acting very laid back (one actually laid back in his chair), and making numerous jokes about getting high on their products. Not what I expected or wanted to hear from staff at a dispensary where I was desperate for direction and answers.
Not only was/is CVD lacking in their professionalism, over the last six months, the quality of the product sold at CVD has decreased tremendously. I doubt many CVD patients/customers are aware that there are aphids and powdery mildy on the medicine their are being sold, ingesting, applying, etc. I find it ridiculous that CVD charges double for what is currently on the street. So, not only is CVD selling a bad product, but they are cheating their customers. Again, obvious actions that illustrate the company’s complete disregard for their patients/customers and their egocentric motives.
From the bottom up, CVD is questionable and unethical. Without a doubt, CVD tricked Pete’s. This was an obvious and skillful scheme designed to deceive Pete’s. CVD’s deceitful and devious behavior must be stopped. They are frauds. Unprofessional staff, poor quality expensive products, a toxic environment to work in, consistent and evident COMPLETE disregard for patients, and egotistical cunning ILLEGAL motives.
Makes me wonder, what else is going on at CVD. This could be pandora’s box.
Thanks to political pressure from the voting public, you can now grow high THC cannabis in your house — but you still cannot grow it on a commercial scale because mass production of a natural pain reliever competes with the patent medicine cartel. Like many other states, the Vermont state government is infested with mobsters who represent an entrenched corporate mafia first and foremost. They also enjoy the support of many religious bigots (who pine for the days of slavery and regard your body as their property.)