HUMBOLDT TODAY: Law enforcement is investigating an apparent murder-suicide that left two men dead in Fortuna; one man’s reckless driving along a waterfront pedestrian trail in Eureka ends in his death; plus, you’ll soon need to buy towels somewhere else. Those stories and more in today’s online newscast with John Kennedy O’Connor.
Co-owners and employees of Emerald Family Farms, LLC, in 2016. | File photo by Andrew Goff.
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In the fall of 2016, the owners and operators of Emerald Family Farms, LLC, offered a tour of their operation near Berry Summit to demonstrate just how well prepared they were to succeed in California’s regulated commercial cannabis marketplace.
As we reported at the time, they’d organized an agricultural co-operative with nearly 100 growers, enlisted in the county’s brand new “track and trace” pilot program, signed a distribution deal and hired public accountants, trademark attorneys and marketing experts.
“Humboldt County is the Napa of cannabis,” co-owner and CEO Patrick Murphy told a reporter with PBS NewsHour later that year. “It is by far and away the largest production zone of high-quality cannabis in the world.”
Five and a half years later, with the Emerald Triangle’s legal cannabis market decimated under the weight of rampant over-production statewide, Emerald Family Farms has failed.
On Wednesday morning, the company’s assets — along with those of two related entities, Humboldt Health Care, LLC, and Emerald Family, LLC — are set to be auctioned off in Courtroom Four of the Humboldt County Courthouse.
The assets include:
52 acres of land in Willow Creek, including a 42-acre farm on the banks of the Trinity River with a 20,300-square-foot commercial building and an 890-square-foot office building,
property housing a 15,000-square-foot warehouse on Ericson Court in Arcata,
commercial cannabis licenses, including ones for cultivation, manufacturing and distribution, and
personal property including “maintenance materials, supplies, equipment, vehicles, inventory and tools, all intellectual property, and brand names.”
So what the hell happened? The picture’s not totally clear. Murphy could not be reached for comment. A former employee, who left the company a couple of years ago and signed a non-disclosure agreement, told the Outpost that he heard Murphy “skipped town and changed his number.”
But a good deal of information can be gleaned from a lawsuit filed last May against the Emerald Family companies by a Delaware-based cannabis equity firm called Pelorus Fund REIT, LLC.
According to the suit, Pelorus loaned Emerald Family Farms a whopping $18 million in 2021 and has never been repaid. (Messages left for the plaintiff’s attorneys were not returned by publication time.)
Lawyers for Emerald Family Farms actually issued a press release about the loan shortly after it went through. Published by Redheaded Blackbelt, the release said this influx of capital, along with a distribution deal with Cresco Labs, would “elevate EFF into one of California’s largest cultivators of high-end, sustainably grown cannabis products.”
As collateral for the loan, Emerald Family Farms put up virtually all of its assets, including a deed of trust encumbering its real estate along with security interest in everything from cash and property to patents, trademarks, products and proceeds, per the lawsuit.
Emerald Family Farms allowed a “Cultivation-Processor” cannabis license to expire in January 2022, and the following month the company defaulted on the loan by failing to make its full debt service payment.
“Borrowers did not pay any amounts to Plaintiff following the Notice of Default and in fact have not paid any amounts to Plaintiff since January 2022,” the complaint says. The unpaid balance is listed as “approximately $19,325,454.12.”
Pelorus sued Emerald Family Farms for judicial foreclosure, breach of contract and injunctive relief, seeking reimbursement of the loan plus interest, delinquent property taxes, attorneys’ fees and other costs.
Per the terms of the loan agreement, Pelorus Fund was entitled to appoint a receiver to take control of the assets Emerald Family Farms had put down as collateral. Wednesday’s auction of those assets is the result of that court-ordered receivership.
According to an auction listing online, the opening bid will be $3.5 million, with subsequent bids increasing in increments of $500,000. Making the sales pitch to potential buyers, the listing claims that the Willow Creek property’s weed entitlements make it “the largest cannabis facility in Humboldt County, and one of the largest cannabis facilities in the State of California.”
(For the record, the defaulted operations of Emerald Family Farms are practically mom-and-pop-sized compared to new commercial grows popping up to our south, such as this 134-acre outdoor farm set to open in Santa Barbara County.)
But the auction listing insists that our county’s name still rings out:
“Cannabis that is produced in Humboldt County is considered superior and world famous, is entitled to strong product branding protections, and commands a higher price than cannabis produced in Trinity County.”
On April 21, 2023 at approximately 12:05 p.m., officers with the Eureka Police
Department (EPD) were dispatched to the 2700 block of Fairfield Street to conduct a
welfare check on the occupants of the residence.
The reporting party stated they had
not been able to contact the occupants for several weeks.
Upon arrival, officers found
the house secured. Officers requested assistance from Humboldt Bay Fire and gained
access into the residence.
Inside the residence, officers found two deceased individuals.
EPD’s Criminal Investigations Unit was contacted and authored a search warrant for the
residence.
The search warrant was executed by EPD Detectives and the Humboldt
County Coroner’s Office. The search of the residence revealed no signs of suspicious
activity or foul play.
This is an ongoing investigation in conjunction with the Coroner’s Office. Anyone with
any information is asked to contact the Eureka Police Department at 707-441-4060.
On April 23, 2023 at approximately 11:30 p.m., the Eureka Police Department received
information of a traffic collision off the Eureka Waterfront Trail near the Tooby Road
parking area.
Upon arrival, officers located a Grey Ford van approximately 300 feet off
the trail in the field. The vehicle was occupied by one male driver, who was ejected from
the vehicle. The driver was declared deceased at the scene.
The initial investigation has revealed that for unknown reasons the vehicle had accessed
the area behind the gate located on Pound Road. The vehicle then drove to the trail
access and began traveling south on the trail at a high rate of speed.
The driver was unable
to navigate a turn at the end of the trail and the vehicle left the roadway, rolling numerous
times before coming to rest in the open field.
This is an ongoing investigation and anyone with information is asked to contact Officer
Jeremy Sollom at 707-441-4060 ext. 1315 or Officer Mark Sheldon at ext. 1339.
Press release from the Humboldt County Sheriff’s Office:
On April 22, 2023, at about 9:47 a.m., Humboldt County Sheriff’s deputies on patrol in the Eureka area conducted a suspicious vehicle investigation on the 3800 block of Little Fairfield Street.
Deputies contacted two occupants of the vehicle, 43-year-old Bryan Chester Maggio and 32-year-old Stormie Dawnn Moore. Moore was found to have outstanding warrants for her arrest and to be on CDCR Parole. During a search of Moore incident to arrest, deputies located over 7 grams of fentanyl.
HCSO K9 Deputy Yahztee was deployed to conduct a free air sniff of the vehicle and alerted to the odor of narcotics inside. During a search of the vehicle and Maggio, deputies located over 36 grams of fentanyl, drug paraphernalia, ammunition and a firearm with its serial number removed.
Maggio was arrested and booked into the Humboldt County Correctional Facility on charges of possession of a controlled substance for sales (HS 11351), felon in possession of a firearm (PC 29800(a)(1)), person prohibited in possession of ammunition (PC 30305(a)), possession of a short-barreled shotgun (PC 33215), possession of a firearm without a serial number (PC 24610) and tampering with the ID marks on a firearm (PC 23900).
Moore was arrested and transported to the Humboldt County Correctional Facility where she was cited and released on charges of possession of a narcotic drug (HS 11350), in addition to her warrants.
Anyone with information about this case or related criminal activity is encouraged to call the Humboldt County Sheriff’s Office at (707) 445-7251 or the Sheriff’s Office Crime Tip line at (707) 268-2539.
Press release from the Humboldt County Sheriff’s Office:
On April 23, 2023, at about 11:10 a.m., Humboldt County Sheriff’s deputies on patrol in the Blue Lake area observed a vehicle parked along Blue Lake Boulevard, blocking Buckley Road. The driver of the vehicle was observed to be passed out behind the wheel.
Deputies contacted the driver of the vehicle, 39-year-old James Melvin McLain, who initially provided deputies with a false name. Upon properly identifying McLain, deputies found that McLain had multiple outstanding warrants for his arrest. During a search of McLain and the vehicle incident to arrest, deputies located pepper spray and bear spray, burglary tools, drug paraphernalia and approximately 0.7 grams of methamphetamine.
McLain was arrested and booked into the Humboldt County Correctional Facility on charges of falsely impersonating another to make liable (PC 529(a)(3)), felon in possession of tear gas (PC 22810(a)), possession of burglary tools (PC 466), possession of a controlled substance (HS 11377(a)), possession of a controlled substance paraphernalia (HS 11364(a)), violation of probation and petty theft (PC 488).
Anyone with information about this case or related criminal activity is encouraged to call the Humboldt County Sheriff’s Office at (707) 445-7251 or the Sheriff’s Office Crime Tip line at (707) 268-2539.
Nordic Aquafarms is pleased to announce an exciting change that will build upon the success
with yellowtail kingfish (seriola lalandi) in Europe for our upcoming operations in Humboldt
County. Nordic Aquafarms California will also raise yellowtail kingfish. Nordic’s Hanstholm,
Denmark farm has raised the species since 2017 and its Fredrikstad farm is currently converting
from Atlantic Salmon to yellowtail kingfish.
Brenda Chandler, US CEO confirmed the benefits of the change with Nordic remaining a phased
project but anticipates the aquafarm will start smaller than what was projected for Atlantic
Salmon. Growth over time will be carefully considered. Nordic’s farm will still use seawater to
raise its fish but use less freshwater and energy. With yellowtail kingfish, it is a fully closed life
cycle, one that begins with in-house brood stock to produce fertilized eggs and grows fish to
harvest weight.
The US currently imports most of its yellowtail kingfish. The farm will augment domestic
demand and offset imports. Further, producing a healthy protein locally reduces the US balance
of trade deficit in seafood. “Both strategies are a solid part of the core values under which
Nordic Aquafarms operates”, Chandler said.
The Samoa facility will focus on yellowtail kingfish, which yields a firm-textured, light pink flesh
with an excellent clean, slightly sweet flavor. Yellowtail kingfish is a highly valued and popular
fish, excellent grilled or baked, and well-suited for sashimi, crudo, and ceviche. The market
demand for yellowtail kingfish saw strong growth both in Europe and the US in 2022 and is
expected to continue.
Across the country in Maine, Nordic Aquafarms has requested a stay of its permits for the
Belfast project. While the Maine project is paused, Nordic Aquafarms remains fully committed
and active in the permitting process with Humboldt County and the state of California, and we
look forward to breaking ground.
