Michigan company illegally imported cannabis from Oregon, state claims

This story was republished with permission from Crain’s Detroit. 

A mid-Michigan marijuana processor is the subject of a formal complaint by the state for allegedly illegally imported marijuana from Oregon.

The Michigan Cannabis Regulatory Agency inspected One Love Labs in Chesaning in late June after receiving a complaint that the processor had received out-of-state product listed in the state’s tracking system as hemp, but it was actually marijuana.

According to the complaint, One Love Labs imported more than 110 pounds of isolate — concentrated product containing pure CBD or THC — and listed it in the state system as a hemp concentrate, or CBD, from a legal processor in Oregon. That processor held a hemp-processor license in Michigan, but not a marijuana processor license.

During the investigation, One Love had a third-party lab test the product, under the supervision of the CRA, and found the so-called hemp product contained 86.49% THC — well above the legal threshold for hemp at 0.3%, according to the state.

It is against federal law to ship hemp product containing more than 0.3% THC across state lines and against Michigan regulations to process or sell product containing more than 0.3% THC that derived from another state.

More confounding is that during the investigation, One Love allegedly shipped the 110 pounds of the THC isolate back to the processor in Oregon — which, if true, would again be in violation of federal drug trafficking laws.

Representatives from One Love did not immediately respond to an inquiry about the allegations. The CRA would not comment further on the matter and declined to reveal whether the U.S. Drug Enforcement Agency or other federal agencies had been notified or are involved.

The state is, however, seeking to fine and potentially revoke the licenses held by One Love as a result of the investigation. One Love Labs makes vape cartridges, as well as edibles including gummies.

One Love was founded by Casey Yosin, son of Auburn Hills’ Hardwood Door and Bevel owner Craig Yosin. Mark Acchione, former chief investment officer for Rocket Loans, serves as the company’s COO.

This is the latest in attempts by state regulators to rein in bad behavior in the industry as illegal importing of marijuana and hemp products remains a problem.

Late last month, the CRA issued a formal complaint against Mount Morris marijuana processor Sky Labs LLC for allegedly using out-of-state hemp powder from Colorado and converting it to marijuana-based distillate under the guise of plants grown in Michigan in the state’s first major attempt to crack down on illicit market products coming in from out of state. Sky Labs manufacturers the popular vape brands Bossy and Flight.

The CRA alleges Sky Labs purchased 130,000 grams — nearly 287 pounds — of THCa isolate, which is a heavily-concentrated powder derived from hemp that when heated can be converted into a form of THC comparable to the psychoactive ingredient found in marijuana.

To combat illicit product in the market, the CRA is planning to open its own reference testing lab in 2025, after receiving a $4.4 million earmark from the state budget.

In June, the CRA banned the use of MCT oil, usually coconut oil, in distillate, which could potentially have adverse health effects.