Michigan CRA Revokes Class C Grower License Following Diversion Investigation (August 2025)

Investigation Summary

Between October 2024 and March 2025, the Michigan Cannabis Regulatory Agency (CRA) Compliance Division conducted a covert investigation in coordination with the Michigan State Police following an anonymous tip. Investigators documented the unauthorized transfer of 214 pounds of cannabis flower and 12 pounds of concentrate to parties not licensed under the Michigan Regulation and Taxation of Marihuana Act (MRTMA).

Administrative Action

Pursuant to R 420.305 of the Michigan Administrative Code and MCL 333.27963, the CRA issued a Final Order of License Revocation effective August 1, 2025. Key findings:

1. Diversion of licensed product — violations of R 420.305(1)(c) and R 420.305(1)(e)
2. Falsification of statewide monitoring system records — violations of R 420.404
3. Failure to cooperate with CRA investigators — aggravating factor under R 420.306

Criminal Referral

The CRA referred the matter to the Michigan Attorney General's Office. The principal licensee was charged under MCL 333.27965 (delivery of marijuana to unlicensed persons). Criminal proceedings are pending.

Industry Impact

This revocation is among the largest diversion enforcement actions in Michigan's regulated history. It signals that the CRA will pursue permanent revocation — rather than suspension — where diversion is intentional and accompanied by record falsification. Multi-license holders should review their monitoring protocols immediately.