Billion dollar marijuana operation, illegally run by Chinese nationals in the U.S.

Drug policy experts say Chinese Nationals are changing the black market with illegal marijuana grow houses across the nation.
Billion dollar marijuana operation, illegally run by Chinese nationals in the U.S.
Updated: Dec. 29, 2023 at 4:14 PM EST

WASHINGTON (Gray DC) - Illegal marijuana farms are being run by Chinese nationals across the state of Maine and in several other states across the country.

Many of these illegal grow house have been reported to police-- leaving licensed marijuana dispensary owners furious, as they allege nothing is being done.

While those who live near these grow houses experience several electricity blackouts and all that comes with living next to a home that’s growing millions of dollars’ worth of marijuana.

City leaders say these grow houses are often times located in suburban neighborhoods and at least one has been reported as being across the street from an elementary school.

“What we’re seeing in legal states is that the black market for marijuana continues to beat the legal market,” said drug policy expert and Vice President of Smart Approaches to Marijuana, Luke Niforatos.

It’s legal to grow weed in the state of Maine - you can actually grow about 3 mature plants but border patrol was alerted to 270 different properties growing enough weed to gross about 4 billion dollars a year. This operation is said to be run by Chinese nationals who then send their earnings back to China.

It’s an illegal and economic problem, that city leaders say is growing.

“All of these are states have allowed for legal marijuana,” said Niforatos. “So, what it kind of begs the question of is does legalizing marijuana open the doors for cover for illegal foreign actors to begin Illegally growing marijuana?”

A deep dive into how this billion dollar operation impacts the community.

Mexican Cartels have been the top dog of Black-Market marijuana trade in the U.S. according to the Washington Post but now Chinese Nationals have quietly built a billion dollar operation, showing up with suitcases full of cash to buy farmland in marijuana friendly states according to drug policy experts.

“I think there’s a lot of concerns here .. as far as how states are regulating marijuana and how illegal cartels are taking advantage,” said Niforatos.

This is an advantage that marijuana dispensary owners say they don’t have. Many of them pointing out the somewhat difficult process to get a legal license to sale marijuana, even in legal states.

“They have every right to feel that way,” said cannibas law attorney, Jonathan Webb. “These are individuals that went through the licensing process; they’re adhering to state laws; they’ve done everything right.”

Senator Angus King of Maine acknowledging the issue.

“It’s a real concern and our delegation here in Washington sent a letter to the justice department to ask them to look into this, unfortunately we haven’t heard back,” said Senator King.

Several members of congress are now drafting up solutions, which could include banning Chinese nationals from owning farmland at all.

I reached out to the Department of Justice to follow up on Senator King’s concern and have not heard back.