Dineh Benally, a resident of Shiprock, pleaded guilty in federal court to leading an extensive illegal marijuana cultivation and distribution operation. The case involved activities spanning several years and included exploiting workers as well as polluting the San Juan River on tribal lands.
Benally admitted guilt to 15 counts. These include two drug trafficking conspiracy charges, four counts of manufacturing and possessing with intent to distribute large quantities of marijuana, two counts of maintaining premises for drug activities, two counts related to illegal discharges into the San Juan River, possession of firearms in furtherance of drug trafficking, unlawful employment and harboring of undocumented immigrants, smuggling undeclared pesticides into the United States, and concealment of records during a federal investigation.
Court documents state that from January 2018 through November 2020, Benally and his associates established more than 30 farms over 400 acres on land acquired from Navajo Nation members. They traveled to California to set up front companies targeting Chinese investors. These investors were charged cash fees ranging from $20,000 to $50,000 for fake cannabis cultivation licenses and were led to believe they were growing legal hemp rather than marijuana. Investors also had to pay a share of the harvest.
The operation built over 1,100 greenhouses employing local Navajo laborers and foreign workers from China—some without documentation—to cultivate and transport marijuana out of New Mexico.
Benally constructed an illegal sandbag dam on the San Juan River by dumping sand, rocks, and agricultural waste into the waterway for crop irrigation. This action constituted an unpermitted discharge under the Clean Water Act.
Law enforcement dismantled this criminal enterprise in November 2020 after seizing approximately 260,000 marijuana plants and about 60,000 pounds of processed product.
From January 2022 until January 23, 2025, Benally operated another illegal grow near Estancia after initially receiving but later losing a state license due to violations such as pest infestations and lack of quality controls. The state revoked his license on December 23, 2023—issuing a $1 million fine—but Benally continued operations despite a cease-and-desist order. He also tampered with utility equipment to steal electricity.
A joint law enforcement raid on January 23, 2025 at properties near Estancia linked to Benally resulted in seizures including roughly 8,500 pounds of marijuana, $35,000 cash, illegal pesticides imported from China or other sources without declaration at U.S. borders or regulatory checks (a violation often pursued by agencies like Homeland Security Investigations), methamphetamine supplies likely intended for sale or distribution within regional networks identified by authorities like the Department of Justice, firearms commonly associated with protection or intimidation tactics among organized crime groups according to findings reported by the Bureau of Alcohol Tobacco Firearms & Explosives, and a bulletproof vest used for personal security during illicit activities.
U.S. Attorney Ryan Ellison stated: “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… Exploiting workers, desecrating land and poising rivers for profit is not business—it is criminal—and it will be met with justice.”
Justin A. Garris with FBI Albuquerque Division said: “The FBI remains committed to identifying investigating dismantling criminal organizations operating in New Mexico… Mr. Benally’s guilty plea demonstrates that those who engage in criminal activity will face real consequences…”
Kim Bahney from EPA’s Criminal Investigation Division commented: “The crimes here represent nothing less than foreign interests poisoning our land wildlife people both up down stream… The San Juan River is a vital resource for the Navajo Nation… Benally must be held accountable for claiming it as his own.”
Acting Navajo Nation Attorney General Colin Bradley added: “I commend cooperation all Tribal Federal State law enforcement officials who worked tirelessly together across jurisdictions bring end dangerous marijuana farms Dineh Benally had flagrantly operated both on adjacent Navajo Nation.”
According to terms outlined in his plea agreement at sentencing Benally faces a mandatory minimum sentence of fifteen years which could extend up life imprisonment plus fines related both drug offenses (upwards ten million dollars) environmental violations ($5k–$50k per day). Upon release he would be subject five years’ supervised release minimum.
Federal prosecutors announced these outcomes jointly with representatives from multiple agencies including FBI Albuquerque Field Office; Farmington Resident Agency; EPA Criminal Investigation Division; Bureau Indian Affairs; DEA; IRS; Navajo Nation Police Department; Torrance County Sheriff’s Office; San Juan County Sheriff’s Office; Valencia County Sheriff’s Office; Border Patrol; Homeland Security Investigations; New Mexico DOJ & State Police; FBI El Paso Field Office—with prosecution led by Supervisory Assistant U.S. Attorney Matthew McGinley along with Eva Fontanez Michael Pahl.
