There are many illegal marijuana farms, but federal agents targeted California's biggest legal one
But when the federal government decided to stage one of its largest raids since President Donald Trump took office in January, it picked the biggest legal grower in California.
Nearly two weeks later, the reason for the federal raid at two Glass House farm sites northwest of Los Angeles remains unclear and has prompted speculation. Some say the raid was intended to send a chilling message to immigrants in the U.S. illegally — but also to rattle the state's legal cannabis industry.
Meanwhile, the Republican Trump administration has been feuding with heavily Democratic California over funding for everything from high-speed rail construction to wildfire relief, so it's also possible Glass House was pulled into a broader conflict between the White House and Sacramento.
'There are plenty of other places they can go to find illegal workers,' said political consultant Adam Spiker, who advises cannabis companies. 'A lot of people believe there is a hint of politics in this. It's federal enforcement coming into California to go after cannabis.'
What happened during the raids?
On July 10, U.S. Immigration and Customs Enforcement and Border Patrol agents executed a search warrant for Glass House's farms in Carpinteria and Camarillo, court filings show.
At the Camarillo site, armored vehicles blocked the road, which is lined with fields and greenhouses, as masked agents deployed onto the property. One farmworker who fell from a greenhouse roof while running to hide later died from his injuries.
Outside the farm, officers faced off with demonstrators and fired tear gas to disperse them, a federal agent wrote in court filings. One demonstrator threw a gas canister back at Border Patrol officers, according to the agent. Another demonstrator, who is sought by the FBI, appeared to fire a gun.
More than 360 people were arrested, most suspected of being in the country without legal status. Those arrested included four U.S. citizens, including U.S. Army veteran George Retes, 25, who works as a security guard and was held for three days.
The operation came more than a month into an extended crackdown across Southern California that was originally centered in Los Angeles, where local officials say the federal actions are spreading fear in immigrant communities.
Why Glass House?
No cannabis was seized and the criminal search warrants used to enter the farm sites are under court seal. Authorities refused to share them with The Associated Press.
The government said the business was being investigated for potential child labor, human trafficking and other abuses. Agents found 14 children at one site. No information has been released about the minors.
The company has not been charged.
Federal and state laws allow children as young as 12 to work in agriculture under certain conditions, though no one under age 21 is allowed to work in the cannabis industry.
Company officials did not respond to calls or emails. In a brief statement on the social platform X, Glass House said it complied with immigration and naturalization warrants and 'has never knowingly violated applicable hiring practices and does not and has never employed minors.'
Some believe the raid was aimed at the legal marijuana market
After the raid, United Farm Workers — the country's biggest farm worker union — posted an urgent message to its social media accounts warning that because marijuana is illegal under federal law, workers who are not U.S. citizens should avoid jobs in the cannabis industry, including state-licensed facilities.
'We know this is unfair,' it said, 'but we encourage you to protect yourself and your family.'
Industry experts point to unwelcome publicity the company received after rival Catalyst Cannabis Co. filed a 2023 lawsuit alleging that Glass House 'has become one of the largest, if not the largest, black marketers of cannabis in the state of California.' The lawsuit, formally filed by Catalyst parent 562 Discount Med Inc., was dismissed last year but the headlines might have drawn the interest of federal investigators.
Who runs the Glass House farm sites?
The company was co-founded by Kyle Kazan, a former Southern California police officer and special education teacher turned cannabis investor, and Graham Farrar, a Santa Barbara tech entrepreneur.
Glass House started growing cannabis in a greenhouse in Carpinteria in Santa Barbara County when once-thriving cut flower operations were being reduced. It later bought property in Camarillo in neighboring Ventura County for $93 million that had six greenhouses and was being used to grow tomatoes and cucumbers.
To date, two of the greenhouses have been converted to grow cannabis. Workers' relatives said tomatoes are still being grown in other greenhouses at the location.
How did Glass House do it?
The raids have put the spotlight on a company that is alternately admired and reviled because of its meteoric rise in the nation's largest legal market.
Glass House is the state's biggest legal cultivator, dwarfing its nearest rivals. Glass House Farms is part of the broader company Glass House Brands, which has other businesses that make cannabis products.
'There is no farmer in California that can compete with them at scale,' Sacramento-based cannabis consultant Sam Rodriguez said.
Many legal operators have struggled despite the passage of Proposition 64 in 2016 — which was seen as a watershed moment in the push to legitimize and tax California's multibillion-dollar marijuana industry. In 2018, when retail outlets could open, California became the world's largest legal marketplace.
But operators faced heavy taxes, seven-figure start-up costs and for many consumers, the tax-free illegal market remained a better deal.
But as other companies folded, Glass House took off, fueling envy and suspicion by rivals over its boom at a time when much of the state's legal market was in crisis, in large part because of competition from the robust underground market.
In a recent call with investors, Kazan said company revenue in the first quarter hit $45 million — up 49% over the same period last year. He said he remained hopeful for a federal shift that would end marijuana's classification as a Schedule I drug, alongside heroin and LSD.
But 'we are a company that does not require federal legalization for survival,' Kazan said.
Glass House's sales grew as many others around the state declined.
'I remain steadfast in the belief that it is not if but when the cannabis industry becomes America's next massive normalized industry, and I'm excited to participate along with investors in the corresponding reward that that change will bring,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
2 minutes ago
- Daily Mail
Video shows mom-of-five's final sighting with alleged killer before she was executed in chilling desert murder
Bombshell new video footage has provided crucial details in the investigation of a 2021 cold case murder in Phoenix, Arizona. Four years ago, the dead body of Alisha Marie Hale, also known as Alisha Bellotte, was discovered in a secluded desert area near Interstate 10 and Baseline Road. Hale, a 34-year-old mother-of-five, was found on June 3 at around 9am with a gunshot wound. It was later determined by investigators that the crime took place the day prior. Earlier this week, Arizona police released chilling video of the last time Hale was seen. In the footage, which was gathered from several different surveillance cameras and provided multiple angles, Hale can be seen driving with an unknown individual. A silver Dodge RAM truck is videoed flooring it down a dirt canal road. Then, moments later, two individuals exit the vehicle. One figure is thought to be Hale, and the other an unknown male in the range of 5'9 to 6 feet tall. The footage is blurry and hard to make out, but the two figures appear to chat for a bit upon exiting the vehicle. Then, they walk out of the camera's view and about two minutes later, only the male driver returns. Cameras captured footage of the truck speeding away immediately after, and a day later Hale's body was found. No suspects have been identified yet, and investigators are continuing to look for information about the case. The Phoenix Police Department are desperately imploring people to come forward if they know anything. 'We are not going to stop. We are going to continue looking for this person,' said Sgt. Brian Bower with Phoenix Police Along with the new video, investigators have released other details of the murder - including what Hale was last wearing, a long-sleeved dress with black and white stripes. 'We know what happened, we just would like to know why,' Detective Kevin Ham of the Phoenix Police Department said. 'Sometimes people that didn't wanna come forward in the past, feel more comfortable coming forward now,' Ham continued. A reward of up to $2,000 is being offered for information. Hale was also known by her married name, Alisha Marie Bellotte. Cameras captured footage of the truck speeding away immediately after, and a day later Hale's body was found According to her Facebook account, she attended Maryvale High School, northwest of downtown Phoenix, and graduated in 2005. Her obituary shares that Hale was born on February 15, 1987 in Phoenix to Melissa Smith and the late David Hale, but that she was raised by Dale Scott, 'the best Dad any child could ask for'. 'Alisha loved her family, music and dancing. She was a licensed Phlebotomist. She loved with all her heart. Alisha will always be loved and remembered for her passion for life and unconditional love she had for family,' the obituary continued. Hale was also a mother to five children - Emma, Chris, Natalie, Corbyn and Conner, according to her obituary.
Reuters
4 minutes ago
- Reuters
Man arrested at US Treasury building after climbing gate, agency says
July 27 (Reuters) - The U.S. Secret Service arrested a man after he climbed a gate at the U.S. Treasury building in Washington on Sunday at about 2:30 p.m., the agency said in statement. Traffic in the area was blocked off as Washington's Metropolitan Police Department's bomb squad, 'out of an abundance of caution,' examined a bag the man had left on the sidewalk outside the fence, according to the statement from a Secret Service spokesperson. It was not an explosive device, the spokesperson added. The Treasury building is located next to the White House on Pennsylvania Avenue. No Secret Service protectees were at the White House at the time, the statement said. The suspect was charged with unlawful entry and in connection with an outstanding warrant and was taken to a local hospital for a medical evaluation, according to the statement.
Reuters
4 minutes ago
- Reuters
Breakingviews - EU's lopsided Trump trade deal will be short-lived
BERLIN, July 27 (Reuters Breakingviews) - European Union trade negotiators may promptly celebrate the success they have achieved by clinching a deal with Donald Trump. If so, the question should be: If that passes for success, what would failure have looked like? Financial markets and European captains of industry will doubtless heave a sigh of relief at the agreement, announced on Sunday by the U.S. president and his European Commission counterpart Ursula von der Leyen. The continent's main exporters can base their investment and commercial plans on the 15% levy on U.S. imports accepted by the Commission. That's much lower than the 30% charge on European goods Trump had promised to impose on August 1 in the absence of a deal, which in turn was less than a previous 50% threat. Importantly, the rate applies to European cars, which join Japanese-made vehicles in escaping the 25% charge on U.S. auto imports, and to the continent's pharmaceuticals and semiconductors, which may have otherwise faced punitive sector-specific treatment. The deal also enables the Europeans to shelve counter-tariffs and other measures they had lined up. Some degree of uncertainty has at least been dispelled. Nevertheless, the tariff level still amounts to capitulation by Brussels. It must be compared not to Trump's threats, but to the 1.47% average, opens new tab rate previously applied to European goods crossing the Atlantic. Only two months ago, several EU governments were warning, opens new tab that a 10% across-the-board charge, similar to what the UK had obtained, would be a red line that should trigger some form of response. In addition to the added trade friction, the EU has also promised to import more energy – spending $250 billion a year on American oil and gas – and could invest some $600 billion stateside. That, at least, is Trump's interpretation of the deal. It's unclear whether these figures represent incremental amounts, or what time frame the president had in mind. Fuzzy as they are, these EU pledges at least do not look very binding. Yet the vague agreement also suggests Sunday's announcement is unlikely to be the last word. Even at the lower rate, the tariffs will hurt the U.S. economy. They will either bring much-needed revenue — a source of pride for Treasury Secretary Scott Bessent – or shrink imports. But they cannot achieve both at the same time. And if EU businesses do crank up investment in the U.S., the resulting capital flows will be to the detriment of the trade balance. All this means the EU's trade surplus, opens new tab with the U.S., which reached 198 billion euros in goods last year, partly offset by a 109 billion euro deficit on services, may not shrink much in the coming years. When the impulsive and unpredictable president can no longer deny the destructive impact of his tariffs, he will be tempted to yet again blame U.S. trade partners. It's puzzling that the EU, the world's largest, opens new tab trading power, has failed to grasp that the best way to fight bullying is to stand your ground. Follow Pierre Briancon on Bluesky, opens new tab and LinkedIn, opens new tab.
