Chad Wurtzel Faces Lifetime Ban Under Michigan Cannabis Consent Order

Michigan’s Cannabis Regulatory Agency has issued a consent order permanently barring Chad Wurtzel from working in any capacity at a licensed marijuana business in the state and requiring HCM Provisioning Inc., doing business as Elite Wellness Mount Morris, to cease operations, the agency said in a news release on October 28, 2026. The order resolves the company’s challenge to the CRA’s denial of its application to renew adult-use retailer license AU-R-000103 for the business at 9423 N. Dort Highway in Mount Morris.

The consent order and stipulation was signed October 14, 2026, by Adam Sandoval as designee of Executive Director Brian Hanna, and takes effect November 13, 2026. Under its terms, the order becomes effective 30 days after the date signed by the CRA’s executive director or designee.

On the effective date, HCM Provisioning’s request for a contested case hearing, which the document states was timely filed after the company received the nonrenewal notice, is withdrawn. The licensee will then cease operations, and the CRA will change the license record status to “closed pending Metrc.” The licensee is responsible for all costs and expenses incurred in complying with the order, and communications required under its terms must be directed to the agency at [email protected].

The stipulation was approved by CRA Operations Director Desmond Mitchell on October 13, 2026. Assistant Attorney General Erika S. Julien signed for the agency, Michael Stein signed as attorney for the licensee, and Wurtzel signed as authorized representative on behalf of HCM Provisioning. The document states the parties reserved the right to proceed to an administrative hearing on the nonrenewal without prejudice to either party if the agency’s operations director, executive director, or their designees rejected the proposed consent order.

Permanent Prohibitions and the Mount Morris Location

The order permanently prohibits HCM Provisioning and Wurtzel from applying for or otherwise seeking any new marijuana business license in Michigan, from exercising managerial control over a licensed marijuana business, and from otherwise meeting the criteria to be deemed an applicant or supplemental applicant subject to a background investigation. It also permanently prohibits them from acquiring any new ownership interest in a licensed Michigan marijuana business and from being employed or working in any capacity at one, including as a regular or managerial employee, as an independent contractor, or through another party.

The order also sets out a transition for the Mount Morris location. Berry Green Processing 2 LLC is prequalified and will submit an amendment application for a license at the location where HCM Provisioning currently operates, and the CRA will process any applications, including amendment and license applications, that Berry Green Processing 2 submits for that location. If its license is granted, HCM Provisioning must email the agency to request a transfer of its marijuana inventory, and the CRA will transfer all marijuana inventory recorded in the statewide monitoring system from HCM Provisioning to Berry Green Processing 2. If the license is denied, HCM Provisioning’s license will be closed and the company must reconcile its inventory.

Nonrenewal Notice and Enforcement History

The CRA issued its notice of nonrenewal on December 5, 2025, after receiving HCM Provisioning’s renewal application on November 6, 2025, which created renewal record AU-RR-002679. The license expired December 6, 2025. The notice, signed by Licensing Division Director Jennifer Piggott and served by certified mail, denied the renewal under MCL 333.27959(5) of the Michigan Regulation and Taxation of Marihuana Act and Mich Admin Code R 420.13(2). The agency determined that each person required to meet licensing standards was not eligible, qualified and suitable, citing the applicants’ history of regulatory noncompliance under R 420.6(3)(c) and the licensee’s failure to comply with the rules and application requirements under R 420.12(2)(k).

According to the notice, licensing records identify Najat Hessano as an 85% shareholder of HCM Provisioning and Wurtzel as a 5% shareholder holding the titles of president, secretary, treasurer and sole director; Nita Murad holds 10% as a non-applicant. Hessano and Wurtzel were also applicants of NH Ventures LLC, NH Ventures 2 LLC and Sky Labs LLC, entities licensed under the Medical Marihuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marihuana Act. The notice identifies Hessano as sole member of NH Ventures, Wurtzel as an authorized contact for NH Ventures and a managerial employee of NH Ventures 2, and Wurtzel and Hessano as 15% and 85% owners of Sky Labs.

For HCM Provisioning’s provisioning center license PC-000162, the CRA issued formal complaints on December 1, 2021, and April 13, 2022, over late annual financial statements for fiscal years 2020 and 2021. HCM admitted the violations and entered consent orders on September 29, 2023, and November 9, 2023, each carrying a $10,000 fine. The notice states HCM never paid the second fine and never filed the statement. License PC-000162 expired December 17, 2023, and was suspended February 7, 2024, for failure to comply with the consent order. A June 15, 2022, complaint against the Mount Morris adult-use license over the fiscal 2021 statement ended in an October 23, 2023, consent order with a $10,000 fine.

NH Ventures, doing business as Elite Wellness Jackson, admitted to failing to file fiscal 2021 annual financial statements for its provisioning center license PC-000413 and adult-use retailer license AU-R-000282 and entered consent orders on December 21, 2022, each carrying a $10,000 fine; the notice identifies Wurtzel as the authorized officer for NH Ventures on those consent orders. NH Ventures 2, doing business as Elite Cannabis, admitted allegations in a May 21, 2025, complaint that it failed to accurately enter transactions, current inventory and other required information into the statewide monitoring system, and entered an August 12, 2025, consent order with a $1,000 fine on license AU-R-000551.

Sky Labs’ medical processor license PR-000121 drew three complaints on March 3, 2021, covering failures to enter and consistently track inventory in Metrc, a failed safety-compliance test for Vitamin E acetate, which the notice describes as a target analyte banned for inhalation by the Food and Drug Administration, without the ingredient listed on the product label, and transfers of product to a sales location without required passing test results. Sky Labs admitted the violations and entered a March 11, 2021, consent order with a $20,000 fine. A March 30, 2022, complaint over a missing fiscal 2021 financial statement ended in an October 21, 2022, consent order with a $10,000 fine. After further complaints in December 2021 and through 2022, including another failed Vitamin E acetate test, edibles produced with melatonin, untagged marijuana product, missing surveillance footage, and edible products in shapes and packaging that appealed to minors, Sky Labs admitted the violations and surrendered PR-000121 under a June 21, 2023, consent order.

Sky Labs’ adult-use processor license AU-P-000157 drew complaints on December 1, 2021, over noncompliant labeling, missing formulation records, employees working without ServSafe training certificates and insufficient surveillance, followed by complaints on December 28, 2022, over edibles containing melatonin, surveillance and log deficiencies, improper product tracking and labeling, and failure to compliantly notify the agency of an adverse reaction that the notice states involved a minor child who reacted to edibles belonging to an employee who had been provided the edibles by Sky Labs. Sky Labs admitted the violations and entered a June 16, 2023, consent order requiring a $100,000 fine, an on-site audit conducted by the agency, submission of all standard operating procedures, and monthly production of maintained logs for 12 months. A November 2, 2023, complaint over inaccurate product tracking ended in an August 16, 2024, consent order with a $2,000 fine.

The notice also states that on November 4, 2025, the agency denied the prequalification application for E2C Jackson LLC (AU-ERA-005530) and the license application for Black Rock Brands LLC (AU-RA-001464), both solely owned by Wurtzel, citing the applicant’s history of noncompliance with regulatory requirements. It further states that supplemental applicant Hessano died December 18, 2024, and that as of the date of the notice no approved ownership-change amendment had been completed for the licensee.