Michigan revokes grower license, fines Millie Montana $250K for dirt fraud

Enforcement action terminates cultivation operations

The CRA's summary suspension order immediately halted all cultivation, processing and distribution activity at Millie Montana's facility pending administrative review. The agency cited violations of MCL 333.27959(1)(a), which prohibits fraudulent misrepresentation of cannabis product identity, and MCL 333.27959(1)(d), which mandates accurate labeling and manifest documentation in the state's track-and-trace system.

Millie Montana Industries held a Class A cultivation license issued under the Michigan Regulation and Taxation of Marihuana Act (MRTMA). The company operated a 10,000-square-foot indoor facility in Kalamazoo County.

Inspectors documented substitution in 47 outbound shipments

CRA field agents sampled 47 shipments between June and September 2026 and found that packages manifested as premium flower contained dirt, mulch, shake, kief or trim in 100% of cases. Lab analysis confirmed zero detectable cannabinoid content in the substituted material. It wasn't flower. It was dirt. Millie Montana's Metrc manifests listed the shipments as compliant flower ranging from 18% to 24% THC.

Deliveries to 14 provisioning centers across six counties showed the same substitution pattern, and retailers reported customer complaints beginning in July 2026, prompting the CRA's targeted inspection sweep.

Financial penalty structure reflects statutory maximums

The $250,000 fine represents the maximum civil penalty available under MCL 333.27965(2) for Class 1 violations involving fraudulent product substitution. Each shipment constitutes a separate violation under a strict reading of the statute, but the CRA consolidated the 47 incidents into a single enforcement action. The agency retains authority to pursue additional penalties if criminal charges follow.

Michigan's tiered penalty framework authorizes fines from $10,000 to $500,000 depending on violation severity and licensee history. Millie Montana had no prior enforcement actions on record.

Track-and-trace integrity now under broader review

The CRA announced it'll audit Metrc manifest accuracy across all Michigan cultivators in Q4 2026, with random physical sampling of shipments to verify product identity against declared cannabinoid profiles. The agency's September 30 bulletin directed all provisioning centers to photograph and weigh incoming flower shipments before acceptance.

Michigan's seed-to-sale tracking system relies on licensee-reported data, and the Millie Montana case exposed a gap in real-time verification at transfer points. For full background on Michigan's compliance framework, see the CannIntel topic hub on Michigan Cannabis Compliance.

Administrative hearing scheduled for December 2026

Millie Montana has 21 days to request an administrative hearing under MCL 333.27968, with a preliminary conference set for December 12, 2026. The company may challenge the evidence or seek a settlement that converts the revocation to a suspension with corrective-action terms. If the revocation stands, the license can't be reissued to any affiliated entity for three years.

The CRA's enforcement docket will determine whether criminal referral to the Michigan Attorney General is warranted under MCL 750.520, which criminalizes fraudulent sale of adulterated goods.