Judge dismisses arson charges against owner of dispensary

Ruling cites lack of probable cause; director of New Mexicann was accused of negligence after fire injured two workers

Santa Fe County Magistrate David Segura on Thursday dismissed criminal charges against New MexiCann Natural Medicine Executive Director Carlos Gonzales in an explosion and fire that injured two workers at the medical cannabis company’s headquarters on San Mateo Lane.

Gonzales was charged in February with two counts of negligent arson after workers Josh Alderete and Josh Martinez were severely burned at the business in October 2020.

Segura ruled the state lacked probable cause to pursue the charges against Gonzales, each a fourth-degree felony, according to an order filed in Santa Fe County Magistrate Court.

Investigators with the State Fire Marshal’s Office had alleged improper use of equipment and violations of state Department of Health safety guidelines led to the fire, according to a criminal complaint.

Gonzales was accused of switching out a hot plate in the THC extraction room to one that did not meet the state’s manufacturing standards for medical cannabis products.

John Day, Gonzales’ attorney, said the case never should have been brought to court by the District Attorney’s Office.

“It was a bad decision on their part to file those charges,” he said in an interview Thursday. “We’re grateful to the judge for seeing that there’s no probable cause.”

Day said the case was never investigated fully and that there was no criminal liability. It was merely an accident, he said.

“Just because there was an accident doesn’t mean someone acted criminally,” he added.

District Attorney Mary Carmack-Altwies did not return a request for comment on dismissal of the charges.

The Department of Health revoked New MexiCann Natural Medicine’s Medical Cannabis Program license in midMay. State Health Secretary Tracie Collins also suspended the company’s ability to produce cannabis.

Collins ruled the company failed to provide adequate

employee safety training, among other violations.

The state Environment Department also fined New MexiCann $142,000 for worker safety violations related to the October fire.

The business began shutting down its manufacturing facility and dispensaries earlier this year.

The October explosion was the second at the San Mateo Lane headquarters.

An incident in 2015 also injured two workers.

The state Occupational Health and Safety Bureau issued fines totaling $13,500 against the business and cited New MexiCann for 12 workplace violations.

New MexiCann became a licensed producer in November 2009 and was one of the first licensed medical cannabis producers in the state.

Day believes, however, that Segura’s ruling is reason for the Department of Health to revisit its decision to revoke Gonzales’ license.

“The entire case, both criminal and the Department of Health action against him, were based on faulty false evidence,” he said. “We’re certainly looking into that.”

Just because there was an accident doesn’t mean someone acted criminally.” Attorney John Day