Dineh Benally has pleaded guilty in federal court to leading an illegal marijuana operation that stretched across several years and included environmental violations and worker exploitation on tribal lands in New Mexico.
Benally admitted guilt to 15 charges, including two counts of drug trafficking conspiracy, four counts of manufacturing and possessing with intent to distribute large quantities of marijuana, maintaining premises for drug activities, discharging pollutants into the San Juan River, possessing firearms during drug trafficking crimes, employing undocumented immigrants unlawfully, conspiracy to harbor illegal aliens, smuggling undeclared pesticides into the country, and concealing records during a federal investigation.
Court documents show that from January 2018 through November 2020, Benally and his associates set up over 30 farms on land leased from Navajo Nation members. They developed more than 400 acres for cultivation by soliciting investments from Chinese nationals using front companies created in California. These investors were reportedly charged between $20,000 and $50,000 for counterfeit cannabis licenses under the pretense they were growing legal hemp. The operation involved building more than 1,100 greenhouses and hiring both local Navajo workers and undocumented Chinese laborers.
The scheme included constructing an illegal sandbag dam on the San Juan River to irrigate crops by dumping waste materials into the waterway. This violated the Clean Water Act by introducing unpermitted pollutants into federally protected waters.
Law enforcement dismantled this enterprise in November 2020 after seizing about 260,000 marijuana plants and 60,000 pounds of processed product.
A second period of activity occurred between January 2022 and January 2025 near Estancia, New Mexico. Benally had obtained a state license to grow marijuana but lost it following regulatory violations such as pest infestations and lack of quality controls; his license was revoked in December 2023 along with a $1 million fine. He continued operating illegally despite a cease-and-desist order—including tampering with utility equipment to steal electricity—until authorities raided his properties in January 2025. That search recovered roughly 8,500 pounds of marijuana as well as cash, pesticides banned in the U.S., methamphetamine, firearms, and a bulletproof vest.
Officials responded publicly after the plea agreement was reached. “This case shows the human and environmental costs when the law is ignored, and it underscores our office’s commitment to protecting New Mexico’s communities and natural resources alongside out federal, state, Tribal and local partners,” said U.S. Attorney Ryan Ellison. “Exploiting workers, desecrating land and poising rivers for profit is not business, it is criminal, and it will be met with justice.”
"The FBI remains committed to identifying, investigating, and dismantling criminal organizations operating in New Mexico." said Justin A. Garris of the FBI Albuquerque Division. "Mr. Benally's guilty plea demonstrates that those who engage in criminal activity will face real consequences. This case highlights the importance of collaboration between state, local, tribal,and federal agencies in delivering justice , ensuring safety ..."
Special Agent Kim Bahney from EPA's Criminal Investigation Division commented: “The crimes here represent nothing less than foreign interests poisoning our land , wildlife ,and people both up- & downstream . Benally orchestrated ...smuggling...illegal Chinese pesticides into...New Mexico . The San Juan River is a vital resource...Benally must be held accountable for claiming it as his own.”
Acting Navajo Nation Attorney General Colin Bradley added: “I commend cooperation ...across jurisdictions to bring an end to ...dangerous marijuana farms that Dineh Benally had flagrantly operated both on & adjacent to Navajo Nation.”
Benally faces at least fifteen years—and potentially life—in prison upon sentencing; fines could reach or exceed $10 million related to drugs plus daily environmental penalties up to $50 thousand per violation day . Upon release he would serve at least five years’ supervised release .
The investigation was led by multiple agencies including the FBI Albuquerque Field Office (Farmington Resident Agency), EPA Criminal Investigation Division (Dallas Area Office), Bureau of Indian Affairs , DEA , IRS ,Navajo Nation Police Department; also participating were sheriff’s offices from Torrance , San Juan & Valencia Counties ; Border Patrol ; Homeland Security Investigations ; NM Dept.of Justice ; NM State Police ;and FBI El Paso Field Office . The prosecution team consists of Supervisory Assistant U.S.Attorney Matthew McGinley ,and Assistant United States Attorneys Eva Fontanez & Michael Pahl .
