Oklahoma Attorney General announces Operation Blunt Force takedown targeting alleged marijuana licensing fraud and trafficking network

State, federal and local agencies announce multi-state arrests tied to alleged illicit marijuana enterprise

Oklahoma Attorney General Gentner Drummond on Tuesday, Feb. 3, 2026, announced a coordinated enforcement action that authorities said dismantled a criminal enterprise accused of exploiting Oklahoma’s medical marijuana licensing system while diverting product into the illicit market.

The investigation, described by officials as “Operation Blunt Force,” resulted in the arrest of 20 people and involved 27 law enforcement partners across multiple states. Authorities said the alleged organization operated in Oklahoma and had connections to individuals and financial activity spanning numerous states and international destinations.

What authorities say the organization did

Investigators identified the alleged enterprise as the “Hao Chen Organization,” led by Hao Tong Chen. Authorities said the group ran fraudulent licensing schemes in Oklahoma from approximately 2021 through 2025.

Officials said the scheme centered on the use of “straw owners” to obtain Oklahoma Medical Marijuana Authority licenses and Oklahoma Bureau of Narcotics registrations for grow facilities in violation of Oklahoma’s residency requirements. Authorities said Oklahoma residents were recruited and paid to allow their identities to be used on applications, after which marijuana was allegedly manufactured and diverted to the black market.

• Authorities said more than 50 search warrants were executed during the investigation.
• Officials reported 12 firearms were recovered.
• Four people were deported as part of the enforcement action.
• Authorities estimated the organization was responsible for roughly one million pounds of marijuana, with an estimated street value of $1.5 billion.

Charges and court process

The arrests follow a multi-county grand jury indictment returned in November that charged 19 defendants with 18 felony counts. The counts listed by officials include racketeering, conspiracy to defraud the state, document fraud, aggravated manufacturing of marijuana and unlawful proceeds.

As with any criminal case, the allegations remain unproven unless and until they are established in court. Charging documents initiate proceedings but do not determine guilt.

Money flows and multi-state footprint

Authorities said the investigation identified bank accounts associated with Chen that showed large cash deposits and recurring wire transfers originating from New York, which officials said were used to pay straw owners and other alleged associates. Officials also said individuals linked to the alleged criminal activity were located in Oklahoma, New York, Texas, Nevada, California, Colorado, Illinois, and Washington.

Officials said the operation reflected a coordinated approach involving state, local and federal agencies across “four time zones,” with participation from drug enforcement, immigration and local police entities in Oklahoma and beyond.

The attorney general’s office framed the case as part of a broader focus on illegal marijuana operations and organized crime in Oklahoma, including efforts tied to enforcement actions conducted since the creation of the Organized Crime Task Force in 2023.