Hemp farm operator charged with 33 felony counts of grand theft of labor

San Mateo County prosecutors say employees suffered losses of $138,000 in unpaid wages

REDWOOD CITY >> The operator of a defunct Half Moon Bay hemp farm has been charged with grand theft for allegedly failing to pay his workers, according to the San Mateo County District Attorney’s Office.

On Tuesday afternoon, David Wayne Jenkins Jr., 37, of Houston pleaded not guilty to 33 felony counts of grand theft of labor, as well as misdemeanor petty theft of labor and numerous unemployment and labor code violations, prosecutors said.

If convicted on all counts, Jenkins faces more than 10 years in prison, said District Attorney Steve Wagstaffe.

Jenkins was the owner of Castle Management, also known as Castillo Seed, which operated a hemp farm in Half Moon Bay from January 2020 until it was ordered shut down in March 2021.

Prosecutors said the business and Jenkins ran out of money after repeated failures to grow and sell crops profitably. To keep his employees working, Jenkins allegedly made promises payment would be forthcoming; they worked without pay for the months of December 2020 and January.

Prior to December 2020, Jenkins withheld taxes and other withholdings from each employee’s paycheck, but he failed to report or transmit any withholdings to the Employment Development Department, or EDD, during the operation of the business, prosecutors said.

Jenkins also lost the business’ workers’ compensation insurance Dec. 29, 2020, due to failure to pay premiums. His employees continued to work until the California Department of Industrial Relations issued a stop order Jan. 28, prosecutors said.

All told, the employees suffered losses of $138,000 in unpaid wages, prosecutors said.

“His victims were very poor coastside residents who were really affected during the Christmas holiday season to have no income,” Wagstaffe said. “But he has started restitution and the victims hopefully will all get fully paid for their work.”

Prosecutors said Jenkins has paid $107,000 to former employees and is expected to continue making restitution.

Jenkins’ attorneys did not immediately return messages seeking comment on the case.

A preliminary hearing has been scheduled for Feb 24. Jenkins is out of custody on his own recognizance.