A Michigan cannabis processor associated with Muha Meds is facing a major regulatory action after the state Cannabis Regulatory Agency ordered the closure of its adult use processor license, revoked its medical processor license, and imposed a $2 million fine.
Michigan Investment 10 LLC, based in Pinconning, has been the subject of regulatory scrutiny dating back several years. According to the Michigan Cannabis Regulatory Agency in, the company was found to have violated multiple state laws and administrative rules governing cannabis processing operations. The final orders were issued September 16, 2026, with the license actions scheduled to take effect September 24.
The regulatory case involved allegations surrounding several areas of the company’s operations, including surveillance requirements, inventory tracking, testing compliance, business agreements and security procedures.
One of the issues specifically highlighted by CRA Executive Director Brian Hanna involved surveillance equipment inside the company’s extraction room.
“These were egregious violations, capped by the fact that their camera in the extraction room was pointed at a wall instead of the activity it was supposed to monitor,” Hanna said in the CRA’s September 16 announcement.
Hanna said Michigan’s cannabis regulations are intended to provide oversight and accountability throughout the regulated market and indicated that the agency would take action when licensees fail to meet those requirements.
Michigan Investment 10 Compliance Manager Aaron Baggett disputed the significance of the surveillance issue. In comments reported by MLive, Baggett characterized the $2 million penalty as “unprecedented” and said the CRA was “grasping at straws” regarding the camera allegations.
“We did have one (that faced the wall), but it was a redundant camera,” Baggett told MLive. “We had another camera in that same booth that was capturing all the footage and the CRA does have access to that.”
Baggett indicated that the company could appeal the regulatory order but declined to provide additional details while litigation remains ongoing.
The case has been working its way through Michigan’s administrative process for several years. The CRA previously issued formal complaints against Michigan Investment 10, including a 2023 complaint involving 31 alleged violations. The company challenged those allegations through Michigan’s administrative court system.
The CRA temporarily suspended Michigan Investment 10’s cannabis licenses on November 15, 2023. Following a post suspension hearing, an administrative law judge dissolved that suspension in January 2024, allowing the company to continue operating while the larger dispute proceeded.
A contested case hearing was held in January 2024. On June 18, 2026, the administrative law judge issued a proposal for decision finding that the evidence supported the violations alleged by the CRA. The agency subsequently accepted the administrative law judge’s findings and conclusions.
The resulting final orders impose the $2 million fine and remove Michigan Investment 10 from licensed cannabis processing operations in Michigan. The CRA says the orders become effective September 24, 2026.
Michigan Investment 10’s connection to Muha Meds has made the case particularly notable. The Pinconning processor was licensed to manufacture Muha Meds branded cannabis products for the Michigan market.
Michigan’s regulated cannabis system requires products sold within the state to be produced through Michigan licensed cannabis businesses. As a result, brands operating across multiple states can use separate licensed operators to manufacture products for individual state markets.
Muha Meds was founded in 2019 by brothers Ali and Muhammad Garawi and has grown into a multistate cannabis brand with products including flower, edibles, pre rolls and vape products. The brand has operations connected to several cannabis markets, including Michigan.
The Michigan Investment 10 case does not mean that every business or license associated with the Muha Meds brand has been shut down statewide. CRA licensing records continue to show active Muha Meds retail licenses in Michigan, while Muha Meds products remain available through retailers across the state.
The CRA maintains public disciplinary records for Michigan cannabis businesses, including the license involved, date of action, penalty and general basis for regulatory action.
For consumers, the immediate impact of the Michigan Investment 10 action will depend on how existing inventory, manufacturing relationships and future Muha Meds production are handled following the September 24 effective date.
The case also illustrates how regulatory disputes can continue for years before reaching a final administrative decision. In this instance, the dispute involved a 2023 license suspension, subsequent administrative proceedings, a 2024 hearing and a 2026 decision before the CRA finalized the penalties.
Couch Lock’d will continue following developments involving Michigan’s cannabis market, including any appeal or additional action involving Michigan Investment 10 and the future production of Muha Meds products in the state.
Source: Michigan Cannabis Regulatory Agency, September 16, 2026. Additional reporting and company statements referenced from MLive.
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