California Cannabis Lab Director Involved in Scandal Over Falsified Product Test Results
Shortly after new sanitary standards for testing legal cannabis products were introduced in early July, the director of a major plant testing laboratory, Sequoia Analytical Lab, decided to falsify test results to attract business from less scrupulous cannabis producers. According to representatives from California’s Bureau of Cannabis Control, who recently uncovered the deception, the lab’s director, Mark Foster, intentionally falsified product purity reports behind his employees’ backs. The staff had no idea that about a hundred shipments of cannabis they had rejected—due to dangerous chemicals and traces of pathogens—were ultimately approved for sale in regional stores.
Reports indicate that the rejected product batches passed tests for all 22 state-banned pesticides, even though the lab did not actually test for some of the newly banned substances. The fraud was only discovered on November 27, nearly five months after the regulatory reform. The discrepancy between the lab’s practices and the paperwork submitted to the bureau was found during a random, unannounced inspection. Confronted with numerous questions from inspectors, Mr. Foster quickly admitted to the falsification. “Essentially, he publicly confessed to the inspectors and all lab staff that the entire scheme was his doing,” said Steven Dutra, the lab’s manager, to reporters.
Foster was fired from his position as lab director the very next day. According to Mr. Dutra, no one at the lab can explain why the director chose to take such actions. “Although the official investigation suggests he wanted to attract more business to our lab, that theory still doesn’t make complete sense, considering all the factors,” Dutra said in an interview.
Both Foster and representatives from the regulatory bureau have declined to comment to the press. “More detailed information about the Sequoia incident will be released as the investigation continues,” was the bureau’s only statement.
It’s clear that, faced with the scandal, the lab’s administration voluntarily surrendered its operating license to the state government. Although the company cannot work with cannabis until the end of the year, Dutra believes the organization may get a second chance in the new year after going through the formal cannabis business certification process again.
Hundreds of Millions of Dollars in Potentially Contaminated Cannabis
The scandal has seriously impacted not only the lab but the entire legal cannabis market in California. Due to Foster’s actions, more than 700 batches of potentially contaminated cannabis entered the market, meaning regional stores may have to retest products worth tens or even hundreds of millions of dollars. While the bureau managed to intercept some contaminated shipments still at the lab’s warehouse, most of the product had already reached stores. At this point, neither market representatives nor inspectors know how to track down and recall the contaminated product, especially since most of it has likely already reached consumers.
It’s important to note that Foster simply altered the data on all the cannabis testing forms he received, so it’s possible that only some of the approved shipments contain dangerous pesticide levels. This is the most likely scenario, as the regulatory bureau reports that critically dangerous levels of toxic substances are found in only about 3% of all commercially produced cannabis. Nevertheless, there remains a risk of poisoning from substandard products. Additionally, the moral damage to the reputation of the regional cannabis market should not be underestimated—unfortunately, Sequoia Analytical Lab was considered one of the most reliable labs in the area before the scandal broke.
“It’s impossible to fully convey our clients’ reactions,” Mr. Dutra told reporters. “While some organizations expressed doubt about the incident, most simply chose to cut all ties with us. The fallout from this will be felt in the local market for a long time.”
Chances for License Reinstatement
Despite the lab’s damaged reputation, there is a chance it could regain its lost license in the new year by demonstrating to the bureau that it has addressed its mistakes. The organization has extensive experience: Sequoia had operated in the medical cannabis market for seven years before full legalization at the start of this year. “Until recently, this company had an impeccable reputation,” said Jeffrey Raber, owner of a consulting firm and former cannabis lab called The Werc Shop.
After the scandal broke, Mr. Dutra personally notified all of the lab’s clients about what had happened and posted information about the possible contamination of products tested by Sequoia in various channels and online groups discussing California’s cannabis market. “At the very least, this way we can warn and protect people, and show the public that the deception was the work of one person, not the entire company,” he told reporters.
In any case, the lab’s staff is now trying to determine the cause of the incident: whether Foster was solely responsible or if the scandal was the result of a failure in the lab’s computer databases. This will remain unclear until the investigation is complete.
A New Start for the Lab
Currently, the lab still has a good chance of returning to business in the new year, thanks to decisive action by management. A new lab director with an impeccable reputation and strong recommendations was quickly hired to replace Foster, and has promised to get to the bottom of the incident and prevent it from happening again.
Although all evidence points to Foster’s direct involvement in manipulating test reports, Dutra notes that such an incident would not have occurred if only one person had not been responsible for verifying the paperwork. “Unfortunately, no one checked Foster’s work because we trusted him,” said Mr. Dutra. “Because of our carelessness, we paid a high price ourselves and put the lives and health of innocent people at risk. From now on, we’ll be much more vigilant about the work of those who are supposed to maintain order.”