For years, Darrin Varnell, Pawnee County Sheriff, had received alarming reports about a cannabis farm near Maramec—men carrying assault rifles, a worker fleeing in fear, and even an incident where a man with a machete chased a naked woman.
So when the DEA raided the site in January 2023, Varnell felt a sense of relief. The operation was shut down, and agents seized $45,000 in cash, more than 17,000 cannabis plants, and a firearm. The farm’s manager, Jiubing Lin, was arrested and later pleaded guilty to conspiracy charges tied to a broader Chinese money laundering network.
However, the relief was short-lived. Just days later, deputies noticed workers dismantling structures at the raided farm and rebuilding them at another site nearby. Records revealed that both locations were controlled by the same group of owners, one of whom had previous charges for wildlife trafficking and armed robbery and alleged links to an illegal New York Chinese police station.
Despite the raid, the farm continues to operate legally under a state-issued license, expanding with new structures. Similar trends have been reported across Oklahoma, where criminal organizations, particularly those with ties to Chinese syndicates persist despite state efforts to shut them down.
Six years after cannabis legalization, Oklahoma remains a hotspot for illegal activity. State authorities struggle to prosecute major crimes like drug trafficking and human exploitation, leading them to focus on ownership fraud instead.
Oklahoma law requires cannabis business owners to have lived in the state for at least two years, but many circumvent this by using locals as stand-in owners. While the state has cracked down on fraudulent licenses, many operators have now met the residency requirement and legally re-registered.
Legislators have introduced several measures aimed at tightening regulations. Some proposals seek to lower the threshold for aggravated cannabis trafficking, while others would eliminate out-of-state cannabis business ownership. Additional measures target human trafficking and foreign nationals with ties to hostile governments.
The state has also implemented new rules, such as stricter licensing policies, employee background checks, and restrictions on foreign land ownership. Authorities claim these efforts have made Oklahoma one of the most regulated cannabis markets in the U.S. However, critics argue that enforcement gaps remain, allowing illicit operators to thrive.
Illegal activity persists despite a reduction in licensed farms from 9,400 in 2021 to around 3,000 today. Investigations reveal that some farms with revoked licenses continue operating, sometimes under dangerous conditions for workers.
Law enforcement officials also acknowledge a backlog in administrative hearings, meaning many questionable operations remain active. Meanwhile, asset seizures have become a major financial resource for the state, with nearly $1.7 million confiscated from suspects this year, much of it from alleged Chinese traffickers.
Violence within the industry has not abated. Recently, a high-profile Chinese investor in Oklahoma’s cannabis market was murdered in Edmond, and another farm owner was charged with shooting a worker. Authorities also continue to investigate links between the industry and sex trafficking rings, illegal gambling dens, and organized crime.
While officials tout progress in regulating the industry, challenges remain. Some experts suggest limiting farm sizes to curb large-scale criminal operations, while others argue for better enforcement of existing laws. In the meantime, law enforcement continues to battle deep-rooted criminal networks operating under the guise of legal cannabis businesses.
Established marijuana companies like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) are all-too-aware of how challenging it can be to operate in a market that is rife with illicit sellers. The entire industry therefore hopes that Oklahoma authorities make inroads in stamping out the marijuana black market so that licensed companies can have a chance to thrive.
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