New Mexico State Police destroyed about 170,000 pounds (77.1 tonnes) of cannabis at two properties in Waterflow, at 23 Road 6940 and 3658 US Highway 64, in an operation on 16 October 2024.[1][2] The Cannabis Control Division had revoked operator NNK Equities’ licence in August 2024 over numerous violations, and obtained a temporary restraining order on 30 September telling the company to cease all production on both properties.[1][2] State police called it the largest cannabis seizure and destruction in New Mexico since recreational legalization in 2021.[3][4]

Investigators said NNK held a licence for 500 mature plants but far exceeded it: on 12 September they found an estimated 80,000 to 100,000 illegal plants at the Highway 64 site, and on 29 September police stopped a van registered to one operator carrying 10 pounds of cannabis flower.[2] “The organization involved showed a blatant disregard for the laws of this state,” State Police Chief Troy Weisler said.[1][2]

Arrests and a promised lawsuit

Irving Rea Yui Lin, 73, and Bau Xue, 59, were arrested on 24 December 2024 and booked into the San Juan County Detention Center on charges of trafficking cannabis products, unlawful possession of cannabis and illegal personal production.[2] The affidavit said the grow, “under the control and direction” of the two men, totalled more than 170,000 pounds.[2]

The company’s lawyer, Jacob Candelaria, said the operators were not properly notified of the licence revocation, were denied a hearing, and were not given documents in Mandarin, and vowed to sue the state for hundreds of thousands of dollars in destroyed assets.[3][4] The state said the violations left it no choice: “illegal operators endanger the people in our state and compromise our legal cannabis industry,” Regulation and Licensing Superintendent Clay Bailey said.[2]