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Cannabis Compliance Board approves $30,000 settlement with Empire Company LLC
Summary
The Cannabis Compliance Board on April 17 approved a settlement resolving disciplinary allegations against Empire Company LLC, requiring $30,000 in civil penalties and a board‑approved plan of correction. The payments are contingent on district court approval of the receivership sale.
The Cannabis Compliance Board approved a settlement agreement on April 17, 2025, to resolve disciplinary allegations against Empire Company LLC, a cannabis facility formerly dual‑licensed for cultivation and production located near Tonopah.
Senior Deputy Attorney General Emily N. Bordelov told the board the investigation of the facility under prior ownership led to summary suspensions in late 2023 and a receivership. The settlement resolves two admitted violations: a Category 3 violation for failing to follow an approved security plan (CEID C184) and a Category 4 violation for improper storage of cannabis and cannabis products (CEID P120).
Under the agreement, Empire (now under new ownership as Tonopah Farm LLC) will pay $30,000 in civil penalties allocated equally between the two licenses ($15,000 per license). Payment is due 30 days after the final required approvals are filed; Bordelov said the district court hearing on the receivership motion is scheduled for April 24, 2025, and, if the court and the board’s approvals are filed the same day, the penalty payment would be due on or before May 26, 2025, at 5 p.m.
Bordelov said CCB staff considered mitigating factors in negotiating the settlement, including Tonopah Farm’s post‑receivership investment and corrective actions. She said the respondent provided a plan of correction that staff approved as a condition to lifting the summary suspensions; CCB staff represented that Tonopah Farm is operating the licenses without compliance issues.
Counsel for the receiver and counsel for Tonopah Farm spoke in support of the settlement. A representative for Tonopah Farm told the board the company invested substantial funds to restore compliance after taking over operations; the board’s presentation recorded that amount as about $6,000,000. Member Mazurana moved to approve the settlement; Member Dratt seconded. The board approved the motion by voice vote; the chair announced the motion carries.
The board directed staff to finalize and sign the stipulation so it can be submitted to the court for the receivership approval. The agreement requires the board’s approval and the district court’s approval in the receivership action before the penalty payment schedule and other conditions are triggered.
Votes at a glance - Agenda item 3 (consent agenda): Motion to approve the consent agenda was moved and seconded; the chair announced the motion carries. (Consent items referenced collectively; no individual item was pulled for substantive debate at that time.) - Agenda item 5 (Empire Company LLC disciplinary settlement): Motion to adopt the settlement terms and approve the agreement was moved by Member Mazurana, seconded by Member Dratt; the board approved the settlement (voice vote; chair announced motion carries).
