AG files suit against Loma hemp operation

The suit alleges that Foxhole Farms and its owner, Dane Snover, have been billing his products as federally legal industrial hemp, but tests on some of those products obtained through undercover purchases showed they “far exceeded legally allowable levels of Delta-9 THC,” the psychoactive ingredient in marijuana.

“Companies that sell recreational cannabis do so under strict laws designed to keep THC away from kids and ensure consumers are buying products that undergo rigorous testing,” Attorney General Phil Weiser said in a release.

“When companies like the defendants in this case brazenly break the law, they undermine Colorado’s regulated cannabis market, make it easier for kids to get their hands on cannabis and may be exposing consumers to dangerous products,” Weiser added. “We will continue to hold accountable companies that try to make a quick buck by breaking the law.”

A message left on Snover’s voicemail for comment was not returned, and his company’s website no longer is active.

According to the lawsuit, filed in Adams County District Court, tests on Foxhole’s products, which have been on the market since 2019, show far higher THC levels than billed to consumers, creating a potentially dangerous situation for those not used to full-scale marijuana.

“Defendants’ apparent lack of proper standard operating procedures concerning product testing and quality control, coupled with their sloppy or misleading weights and measures, endangers public health,” the lawsuit reads.

“Their products can have significant legal and employment implications for consumers, as well as dramatic negative health effects,” the suit adds. “Even adults with a tolerance to cannabis can be put in danger by consuming these products, as they can unexpectedly become impaired in a precarious situation, such as while driving, if they are taking a product that is mislabeled, potentially putting others at serious risk as well.”

The lawsuit was filed in the 17th Judicial District (Adams County), instead of Mesa County, because products purchased by an undercover officer were sent to an address in Broomfield.

Weiser said his office first became aware of Foxhole’s alleged illegal practices last year when a consumer in another state filed a complaint saying the company had sold cannabis products to their 16-year-old son. The company’s website did ask customers to indicate they were at least 21 years or older, but it didn’t have an age verification system, and at no time during the undercover purchases were consumers required to show proof of age, the office said.

Three undercover purchases of edibles, vape cartridges and other items showed that many of the products sold over that website tested well above the legal limit to be classified as industrial hemp, which must have a THC rating of 0.3% or less.

Those purchases, which were mailed in single packages to an undercover investigator, came with a “Notice to Law Enforcement” document claiming the contents included products that contain less than 0.3% THC. None of them were in child-proof containers, as required by state law, the lawsuit says.

Although gummies in the first undercover purchase contained 0.705% Delta-9 THC, more than twice the limit allowed as hemp, and another product tested at 0.4881 THC, the “vape cart” came in at 40.189%, more than 133 times the hemp limit, the suit says.

Other subsequent undercover purchases of vape cartridges tested at 173 and 249 times the hemp limit.

One of the products also failed the state’s pesticide testing, and the company did not disclose to the undercover agent that its products contained prohibited pesticides. Another product tested positive for Benzene, a highly toxic solvent that is expressly prohibited under state regulations in industrial hemp manufacturing, the lawsuit says.

“Defendants have also knowingly or recklessly disregarded that many of their products may appeal to children, as they are clearly ‘copycat’ products which directly resemble or are identical to popular candies and snacks,” the lawsuit reads. “For example, defendants’ ‘Delta 9 full size cookies’ are marketed using a stock photo of the popular cookie brand Oreo.”