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CCB adopts settlement with Empire Company LLC, $30,000 in civil penalties
Summary
The Cannabis Compliance Board approved a settlement resolving disciplinary allegations against Empire Company LLC, including admission of two violations and civil penalties totaling $30,000 to be paid after board and court approval.
The Cannabis Compliance Board on April 17 approved a settlement with Empire Company LLC to resolve disciplinary allegations arising from a 2023 audit and summary suspension.
Senior Deputy Attorney General Emily N. Bordelov told the board the case grew out of an investigation under prior ownership that led to a November 2023 summary suspension and a court-ordered receivership. Bordelov said the facility (referred to in the record as Empire or the respondent) admitted to two violations: one Category 3 violation related to failure to follow an approved security plan for CEID C184 and one Category 4 violation for improper storage related to P120. "Respondent will pay civil penalties in a total of $30,000 which is allocated equally amongst the licenses, so $15,000 each," Bordelov said.
The settlement ties the timing of payment to both board and district court approvals. Bordelov said the district court was scheduled to hear the receiver's motion to approve the settlement on April 24, 2025; if the court and the board approve and the order is filed promptly, the 30-day payment period would begin on the date the last required approval is filed (Bordelov noted a target example date of May 26, 2025, if filings align). She also described mitigating factors considered by staff, including Tonopah Farm's investment and operational work to bring the licenses into compliance.
Board members heard from counsel for Tonopah Farm and a representative for the court receiver, who said Tonopah Farm took over operations in March 2024 and had invested funds and resources to restore operations. The board moved to adopt the settlement terms and the motion carried with no recorded opposition; the chair indicated she would sign the stipulation after the meeting so the parties could seek court approval.
The board record shows the settlement resolves allegations including security, seed-to-sale tracking, tagging, inventory control, harvest/waste management, and sales-reporting issues; the agreement was presented as an alternative to a contested hearing that could have produced larger penalties or additional violations.
Next steps: the Receiver will seek court approval (scheduled April 24, 2025) and, if the court signs the stipulation and the order is entered, Empire (or the entity operating the licenses) will be required to make the civil-penalty payments within the 30-day window set in the settlement.
