Due to the federally illegal nature of cannabis, the DHS argued, the companies are not entitled to the return of their cannabis. Nor must the government return the money associated with the business through the lawsuit. Instead, the companies would need to file a motion to set aside forfeiture through the Civil Asset Forfeiture Reform Act (CAFRA).
DHS noted that such a motion could only be granted based on a lack of notice, and the agency emphasized that the companies had proper notice that the money would be seized.
The eight businesses filed a complaint in October, claiming that DHS and CBP violated due process by unlawfully seizing inventory and cash at checkpoints in New Mexico, contravening a long-standing U.S. policy of not interfering with state-regulated marijuana entities.
The plaintiffs include Royal Cannabis LLC (doing business as Baked Chicken Farm), Mesilla Valley Extracts LLC, Super Farm LLC (doing business as Smokey Road Farms), Impact Farms LLC, Chadcor Holdings NM LLC (doing business as Top Crop Cannabis LLC), Mylars LLC, Rollin Love LLC, and Desert Peaks Farms Inc.
