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Ken Paxton’s Financial Disclosures Appear to Violate Federal Ethics Law, Experts Say

A black-and-white graphic of Texas Attorney General Ken Paxton holding miniature houses against a green background showing financial disclosures.
Photo collage by ProPublica. Source imagery by The Texas Tribune, with documents acquired by ProPublica.

Texas Attorney General Ken Paxton appears to have violated federal ethics law in significant ways when filing recent disclosures of his assets and liabilities, creating confusion about his net worth and holdings, a review by ProPublica and The Texas Tribune found.

Among them: Paxton, the Republican nominee for U.S. Senate, reported owning seven homes but said he earned no income from any. Yet all but one was listed for rent during the reporting periods, and some current residents and neighbors at those addresses confirmed that the properties were rented, the news organizations found. Receiving income and not reporting it is a violation of federal disclosure law, three ethics experts said. 

Additionally, Paxton did not disclose mortgages for three condos at a Utah golf resort that federal law requires him to list as liabilities if they are not personal residences. 

He also valued his stake in a vacant plot of Texas land at up to $50,000 on last year’s filing, but his business partner told the newsrooms Paxton’s share for years has been worth about $1 million. Federal financial disclosure law requires property to be listed at fair market value.

The apparent errors and omissions the newsrooms found obscure the extent of Paxton’s income streams, assets and debt, making it difficult for voters to make sense of his finances as they mull whether to support him in November’s election, the ethics experts said.

“It reflects either pure sloppiness on Paxton’s part or a deliberate effort to conceal some of his investments and property holdings,” said Craig Holman, a government affairs lobbyist for the nonpartisan good-government group Public Citizen.

A close-up screenshot of an amended financial disclosure form highlighting a joint asset listed as undeveloped land in Johnson County, Texas, valued between $15,001 and $50,000.
A close-up screenshot of a financial disclosure document highlighting a joint asset listed as undeveloped land in Johnson County, Texas, valued between $1,000,001 and $5,000,000.
In Paxton’s filings reviewed by ProPublica and The Texas Tribune, he valued an undeveloped plot of land as worth up to $50,000 in 2025, first image, but then listed it the following year at between $1 million and $5 million, second image. Obtained and highlighted by ProPublica and the Texas Tribune

If Paxton wins, an incomplete picture of his finances could prevent watchdogs from evaluating his conflicts of interest as a senator, Holman and others said.

The apparent omissions are part of a pattern for Paxton. Over three terms as attorney general, he has withheld financial information that could explain how he became a multimillionaire and had the resources to purchase more than a dozen properties in five states. He began including many of these on his state disclosures only after the Texas Ethics Commission closed a loophole in 2024 that Paxton had cited to leave them off. Most were acquired while Paxton earned a government salary of $153,750.

In the new federal disclosure, filed in August after Paxton received a three-month extension, he reported a net worth between $1 million and $27 million. That is a significantly higher range than the negative $1.9 million to $11.1 million net worth he reported a year ago, before he had secured the Republican nomination but after he had declared his candidacy for federal office.

The spike was driven not by Paxton’s acquisition of more assets but because the reported value on several of his properties soared. 

Paxton’s report omitted listing as assets seven properties worth about $5.2 million collectively, including the Utah condos for which he did not disclose mortgages. He co-owns all of his known real estate holdings with his estranged wife, state Sen. Angela Paxton, property records show. The eight he reported are held by their blind trust, which is managed by a family friend.

Federal rules do not require candidates to report as assets personal homes or properties from which they don’t earn money, even if the properties are worth millions.

At a time when voters feel anxious about their own personal finances and dislike the idea of politicians getting rich in office, it would be wise for Paxton to be more transparent about his wealth, said Texas ethics and campaign finance lawyer Andrew Cates.

“If it were me trying to get people’s vote, I would err on the side of transparency rather than not,” Cates said.

Paxton declined to be interviewed and did not answer detailed questions about how he filled out the disclosure forms. Madison Cercy, a spokesperson for his campaign, said Paxton “has had a long and successful career outside of public service, including running his own small business as a lawyer. Stirring up partisan allegations is nothing more than a bad attempt to manufacture controversy where none exists.”

Before being elected to the state Legislature in 2002, Paxton worked at a law firm in the Dallas area and was a corporate attorney for JCPenney. His state financial disclosure for 2001 listed assets totaling no more than $170,000, a ProPublica and Tribune analysis found.

By 2015, his household net worth had grown to $5.4 million, according to financial records lawmakers subpoenaed in 2023 after impeaching Paxton on charges that he took bribes in exchange for helping an Austin real estate investor.

The records, few of which were admitted into evidence during the 10-day Senate trial that resulted in his acquittal, document how Paxton built a diverse portfolio that included investments in a cellphone tower, an HVAC company, a cement supplier and a police body camera manufacturer. He netted $2.2 million when Motorola acquired the body camera firm in 2019, according to his income tax return from that year. 

Shortly after, he went on a real estate buying spree, snapping up six properties in Oklahoma, Florida, Utah and Hawaii. His impeachment defense team said Paxton made a prudent shift toward real estate at a time of rock-bottom interest rates.

Questions about Paxton’s integrity have dogged him in the race for U.S. Senate. His opponent, Democratic state Rep. James Talarico, entered September with a narrow polling lead — uncharted territory in a state where Republicans have not lost a statewide race in 32 years. 

A University of Texas/Texas Politics Project poll released last week found that just a third of respondents viewed Paxton as “honest and trustworthy.” The same day the statewide poll was published, a super PAC supporting Talarico hit the airwaves with an ad that labeled the attorney general as “the most corrupt politician in Texas.” The commercial included a reference to Paxton’s recently disclosed net worth.

Talarico’s net worth, according to his most recent personal financial disclosure, was between $67,000 and $305,000. The range changed little from the previous year. Like Paxton, Talarico did not include his single personal residence among his reported assets. 

James Henson, director of the Texas Politics Project, said the questions surrounding Paxton’s latest financial disclosures reinforce a longstanding narrative that the attorney general is secretive about his finances and may have leveraged his public position for personal gain.

“It’s his choice how much he explains or doesn’t explain,” Henson said. “But I think that comes with a potential cost, and we’re seeing that in public opinion.”

Paxton’s pivot to real estate appears to be a way to supplement his salary as attorney general. The newsrooms found recent rental listings for six of the properties he disclosed but for which he said he derived no income: two homes in Ocala, Florida; a home and a condo in Austin; a home in College Station, Texas; and a vacation lodge in Broken Bow, Oklahoma. 

A tenant confirmed to the newsrooms she’s living at one of Florida houses. At the Austin condo complex, a next-door neighbor said Paxton’s unit has a renter. And the five-bedroom, three-story Oklahoma lodge he owns is listed online as a short-term rental for up to $1,200 a night, with fall bookings filling up fast.

On his disclosure forms, which require real estate income to be reported, Paxton for each property selected the option “None (or less than $201).”

Federal law requires candidates who aren’t currently in Congress to report all loans exceeding $10,000, except those for personal residences. Paxton did not report three mortgages totaling $1.3 million for condos at the Black Desert Resort in southwest Utah, renowned for its world-class golf course. He purchased the properties in February; the reporting period for the most recent disclosure ran through mid-May. 

Reporters found the mortgage documents in local land records. Each contains an addendum to the mortgage that is used for rental properties, said New Jersey real estate lawyer Daniel M. Shlufman. That addendum removes a requirement that the unit be owner-occupied and allows the lender to collect rent directly from tenants if Paxton were to default on the loan.

Paxton purchased another condo at the resort in 2025, which he disclosed on his most recent report as an asset and a liability. The land records show he obtained a $640,000 mortgage for it. The resort advertises a program in which it leases units purchased by investors, but it declined to say if Paxton’s properties were enrolled in it.

“It’s kind of mind-boggling to think about having four homes at one resort property and imagining those are for personal use,” said Cynthia Brown, a senior lawyer at the government watchdog Citizens for Responsibility and Ethics in Washington.

The most significant changes between Paxton’s 2025 and 2026 reports were the valuations of the Oklahoma lodge and a plot of land outside of Fort Worth, whose value he said had increased by millions of dollars.

He appears to have switched from reporting the properties’ assessed values, which are set by the local county, to the loftier estimates of what they would fetch on the open market. 

Paxton’s initial use of the lowball values appears to defy federal rules aimed at bringing candidates’ disclosed property values in line with what they’re actually worth. While the Senate Ethics Committee instructs filers that they can use a recent tax assessment to set the worth of certain property, they must adjust it to market value if it is assessed below that. In these cases, valuations must be disclosed as a specific dollar figure rather than a range.

On both his annual reports as a Senate candidate, Paxton listed ranges for the value of each property he disclosed.

Last year, Paxton reported the Oklahoma lodge, just north of the Texas border, as worth between $100,001 and $250,000. The local county assesses the property at $176,000. Its estimated market value, meanwhile, is more than $1.5 million, according to real estate websites. This year, Paxton’s disclosure valued the property at between $1 million and $5 million. 

Likewise, Paxton valued a 42-acre plot of undeveloped land in Johnson County, south of Fort Worth, at between $15,001 and $50,000 last year. The county assesses the property as farmland worth $20,008, but estimates its market value is $2.9 million. This year, Paxton’s disclosure said the property was worth between $1 million and $5 million.

Paxton bought the property in 2006 with a group of investors including Rob Orr, with whom he served in the Texas House of Representatives. Orr, who manages the investment, said in an interview that Paxton’s 20% stake is worth about $1 million.

“It would have been around a million for quite a while, probably the last four or five years,” Orr said. “It has increased in value because of zoning and because of time.”

The group bought the plot to hold onto, Orr said, until creeping growth from the Dallas-Fort Worth area made it attractive for redevelopment. He said the group is negotiating a sale to a developer. Last year, Orr persuaded the City Council in Burleson to rezone the land, which had been restricted to agriculture, to permit retail and housing.

Paxton’s move to significantly revalue his assets without explaining why is “very strange,” said Margaret Dylus-Yukins, senior counsel for ethics at the nonpartisan Campaign Legal Center, which advocates for strong disclosure rules. Dylus-Yukins, who worked for six years analyzing executive branch officials’ financial disclosures for the U.S. Office of Government Ethics, said the agency would ask filers to explain major changes in writing.

“When you have public officials that appear to be fudging the numbers on their disclosure forms, and the Senate Ethics Committee is letting that slide, then you’re not only eroding trust in the committee but the candidate himself,” Dylus-Yukins said, referring to the significant differences between the filings. 

The ethics committee did not respond to requests for comment. Candidates or senators who willingly falsify financial disclosures can be fined up to $50,000 or prosecuted for making a false statement to the government, a felony. The committee rarely investigates senators and has not formally sanctioned a member in 19 years.

Candidates do not have to file any more federal financial disclosures before the November election.

The post Ken Paxton’s Financial Disclosures Appear to Violate Federal Ethics Law, Experts Say appeared first on ProPublica.

Regulators Knew This Marijuana Product Was Harming People. It Stayed on Shelves for More Than a Year.

A smiling woman and a man sit next to each other on a wooden bench in front of a wooden fence. The man has his arm around the woman and the woman has her hand on his knee. Diagonal lines of shadow fall across their bodies.
Jenifer Chatting and her husband, Luke, at home. Jenifer was diagnosed with liver damage after taking marijuana-based sleep pills. Stephen Swofford/The Denver Gazette

In March 2022, Colorado public health officials started getting startling reports of liver damage tied to a new marijuana-based sleep aid that had quickly become a top seller in the state.

But it wasn’t until June 2023, nearly 15 months later, that the state’s Marijuana Enforcement Division would warn consumers that the danger had become so serious that the manufacturer had halted production of the sleep pills, called 1906 Midnight Drops, after more reports of “acute liver injury.”

The delay highlights a slew of weaknesses in the system for protecting consumers from hazardous products in the nation’s first regulated recreational marijuana market.

The health complaints had prompted the division to investigate, but the agency decided it didn’t have the power to pull the drops from the stores in this situation. If the agency had dug deeper, it might have found what the state attorney general’s office later discovered: The manufacturer, Sima Sciences, began receiving complaints of harm shortly after it launched 1906 Midnight Drops and two years before health officials ever did.

Instead, the enforcement division took four months after the first report of liver damage to the state to post a notice on its website. But the agency didn’t call it a health and safety warning, which would have advised people not to consume the product. It released a more neutrally named “informational notification.” While there had been reports of “adverse health events,” the notice said, regulators didn’t find any violations. The manufacturer had reformulated the product, the notice added, and no additional issues had surfaced.

Jenifer Chatting didn’t even see it.

A surgical assistant at an oral surgeon’s office, Chatting wanted a safe, natural alternative to pharmaceuticals to treat her insomnia. So she was relieved when a local marijuana dispensary suggested a sugar-free option made of cannabis and herbal extracts that the manufacturer touted as the “the best sleep aid on the market.” She began taking the Midnight Drops nightly the same month that the state health department received its first complaint.

Unaware of the enforcement division’s notification, she didn’t worry when she started having full-body cramps and became lactose intolerant in September 2022, about six months after she started taking the drops. She thought she just needed to drink more water.

She continued taking the drops for nine more months until her dispensary stopped stocking them. Now, despite never having liver problems before, according to her medical records, she has liver damage at age 53; her doctor says she will ultimately need a transplant.

Colorado’s failure to get Midnight Drops off the market or to warn consumers to stop taking it despite repeated reports of harm was not an anomaly, The Denver Gazette and ProPublica found.

The division has limited authority to force companies to recall products. The agency instead relies on posting health and safety advisories on its website to warn the public, and on sending news releases to local media outlets.

Yet, in the cases for which the news organizations were able to identify the date of a complaint or the start of an investigation, it took regulators an average of more than seven months to issue a warning. That’s an incomplete snapshot because the division refused to release data on when investigations began. Complaint dates were private, it said, because the probes were ongoing — even years after the warnings were issued and some companies had surrendered their licenses.

Still, The Denver Gazette and ProPublica were able to identify initial complaint or investigative start dates for 23 of the 83 advisories the agency issued over the past five years by reviewing other licensing violation records. 

Seven months is a long time for products that are typically smoked or ingested within days of purchase, industry insiders and consumer safety experts said. In comparison, federal investigators have criticized the U.S. Food and Drug Administration for taking an average of two months after learning of a potential hazard to not just warn consumers but to get companies to recall contaminated food.

Kimberly Anzarut, a former Denver marijuana regulator and now an industry consultant, said the delays mean Colorado consumers aren’t getting vital warnings while products are still on shelves.

“When you take a really long time to get a bulletin out to tell people about these issues, a lot of time, people have already consumed the product,” she said.

A high-angle view of the inside of a warehouse with various machines, cardboard boxes and people wearing lab coats and hairnets.
Sima Sciences’ production facility in Henderson, Colorado, in November 2018. After the launch of sleep aids in 2019, Sima began receiving complaints that Midnight Drops were seriously harming consumers’ livers. Carl Bower

Lab directors said it generally takes only three days to return test results identifying contaminants, and if there’s an emergency, they can do so in a day.

But MED spokesperson Heather Draper said in a statement that it’s more complicated than just getting test results and that it takes time to build a case that leads to a health and safety advisory.

“This most often requires investigative resources to evaluate the scope of concerns, gather evidence of potential product safety concerns, and receive test results that indicate a contaminated product has been sold to consumers,” she said. 

Thuy Vu, Denver’s former head of marijuana inspections and enforcement, said regulators should act more quickly and that “time is of the essence,” because the safety problems reported to regulators are almost always a fraction of the harm a product is causing.

“Seven months, eight months, that’s ridiculous,” she said.

The delays mean contaminated marijuana products often remain on sale for a long time, with no public warning. In addition to complaint dates, The Denver Gazette and ProPublica were able to get sales start dates for nearly all the health and safety advisories and found that Colorado regulators also take, on average, more than seven months from the first sale of a contaminated marijuana product to warn the public.

The news organizations found that warnings take a long time in part because Colorado lacks measures adopted in many other legalized marijuana markets to improve testing procedures and prevent contaminated marijuana from going to stores. 

And when the state does discover a problem in a product already on shelves, it gives manufacturers multiple chances to disprove the agency’s finding. Though the MED can require companies to stop distributing flagged products, industry lawyers and manufacturers said manufacturers often continue selling them while challenging the findings.

Chatting’s husband, Luke, is now fearful of losing his wife and critical of what he calls insufficient warnings about Midnight Drops. The couple is suing the company, which has denied their claims. The lawsuit is pending.

“Why weren’t there big banners in front of the dispensaries about these things?” he asked. “The state makes millions and millions and millions of dollars off of the taxes for the marijuana, but they don’t do any regulation at all.”

“My Patients Were Swearing by These”

A bald man wearing a suit presents orange molds, one of which is filled with chocolate disks, to a group of people wearing hairnets and holding cellphones.
Sima co-founder Peter Barsoom, right, displays the molds used to make THC- and CBD-infused peanut butter cups on a tour of his production facility. Carl Bower

The person behind Midnight Drops is Peter Barsoom, a wunderkind of Wall Street finance who left New York in 2014 to co-found a recreational marijuana company called Sima Sciences.

Soon he was turning up in splashy magazine profiles. The 1906 product line was a nod to the year the U.S. government enacted the Pure Food and Drug Act, which he said led to the first federal regulation and eventual prohibition of cannabis. 

His initial focus was high-end marijuana-infused truffle chocolates. 

“Our competitors are chardonnay, Xanax and coffee, not other edibles,” he said during an interview in 2017. 

In 2019, he branched out into the sleep tablet line and also manufactured other “drops” meant to help with sex, anxiety, energy, focus and bliss.

By 2023, his company, based in Henderson, Colorado, was manufacturing 81% of the pills sold in dispensaries in the state, according to the cannabis analytics firm BDSA.

Vu, the former Denver regulator, worked for about a year as Barsoom’s head of regulatory compliance and said Barsoom wanted her to bend the rules on inventory reporting and product safety, though she stressed that she was unaware of the problems with the Midnight Drops, which were made after she left. They clashed, and he fired her in 2016, she said.

Barsoom declined interview requests and did not respond to detailed questions. His company’s lawyers also did not respond to requests for comment. But in court filings in response to personal injury lawsuits, they stated that “injuries, damages and losses, if any, may have been caused by plaintiff’s own comparative negligence.”

To promote the Midnight Drops, the 1906 website said the pills were infused with corydalis, an herbal extract, which, it said, “has been used for millennia.” It claimed the extract had sedative qualities and would help people stay asleep because it targeted body pain and tension.

A relative of the poppy, corydalis also contains a compound that researchers have linked to severe and potentially fatal liver injury.

Following reports about liver problems, the company reformulated Midnight Drops and added a warning label stating the product should be taken in consultation with a physician. But the new herbal supplement was also primarily composed of a compound with the same chemical makeup as the one in corydalis that had been tied to liver risks, regulators eventually concluded. 

One doctor reported to the enforcement division in December 2022 that he continued to “see an uptick in patients with elevated liver enzymes,” which he believed was caused by Midnight Drops. He warned the agency that he had seen four such patients in the past two months and knew of other doctors treating more, state records show.

Dr. David Cristin, a gastroenterologist, said he was exasperated because patients kept using Midnight Drops despite his concerns. He said he registered a complaint through the company’s website, detailing the issues he had found, but was never contacted.

“The thing that was frustrating was my patients were swearing by these,” he said.

A website screenshot showing a pink tubular container with the label “Midnight: 20 plant-based pills for sleep.” Text surrounding the container describes the main herbal ingredient as corydalis.
As late as May 26, 2022, months after the state started getting reports about liver damage, the 1906 website still advertised corydalis as the key ingredient in Midnight Drops, though it contains a compound linked to liver injury. Screenshot by ProPublica via the Internet Archive. Highlights added by ProPublica.
The same screenshot as previous image but all the mentions of corydalis have been replaced by Stephania.
By Aug. 17, 2022, the company started highlighting Stephania instead of corydalis while keeping the marketing language and plant image the same. Stephania contains a compound with the same chemical makeup as the one in corydalis that had been tied to liver risks, regulators eventually concluded. Screenshot by ProPublica via the Internet Archive. Highlights added by ProPublica.

By May 2024, the Colorado Department of Public Health and Environment would receive 52 reports of harm involving Midnight Drops, at least 20 severe enough to require medical care. Of those reports, 25 occurred before the MED’s second notification. While the health department often does the initial review, records show it typically finished gathering information within days, which would trigger an automatic referral to the MED.

Nearly a year after issuing its first “informational notification,” the MED and the health department issued the second one in June 2023, warning that Midnight Drops had continued generating reports of “acute liver injury.” 

At that time, Sima announced it was stopping production. But Barsoom and his companies continued marketing Midnight Drops for several more months and did not adequately warn dispensaries to stop selling them, according to a Colorado attorney general’s office investigation.

Chatting didn’t see the second MED notification either. A couple of weeks after it was posted, she went into a dispensary but learned the drops were no longer in stock. She said a dispensary staffer told her they had been pulled because consumers had been abusing the product. She hadn’t been, so she didn’t worry.

But that summer, bloodwork during a routine checkup revealed Chatting’s liver enzymes had soared to abnormal levels, indicating potential damage.

The MED’s lawyers have refused to release any of the agency’s investigative files about Midnight Drops, making it difficult to assess why the agency didn’t act sooner. Draper, the spokesperson, said that when regulators were fielding complaints about Midnight Drops, their powers were limited: They could put a hold on products and require companies to issue recalls only for specific violations. She said because of a 2023 statute change, regulators can now place holds on products over safety concerns to prevent their sales, even without a violation.

Still, even with that change, the time it takes to warn consumers after the first complaint as well as after the date when a product goes on sale have both gotten longer, according to the news organizations’ analysis. Draper said the agency “has improved its Health & Safety Advisory processes and this work continues.” She added that agency officials do not believe that the newsrooms’ analysis is “an accurate representation of our process and progress in these areas,” but she did not say why or provide any evidence disputing it.

Loopholes in Safety Rules

The continued time lag in public warnings from regulators is another blow to consumer safety for Colorado’s marijuana industry, which has loopholes in safety rules other states have closed to make it less likely that contaminated products end up in dispensaries.

In one of the longest cases, it took regulators three years to warn consumers from the date of the first sales of marijuana products made by Pueblo County-based Boone Farms that were contaminated with yeast, mold and aspergillus, which can damage lungs and cause asthma, fungal infections and, in rare instances, death. Draper said she could neither confirm nor deny if there was any other investigation. The owner of the company declined to comment but previously said it was a small amount of product and that some of it sold before the state set standards for aspergillus.

An MED investigator had similar suspicions about contamination in products made by Boulder-based Range Street, but “due to other priorities and bandwidth,” had to put the investigation on the “backburner,” according to the investigator’s synopsis obtained through a public records request. The MED eventually found yeast, mold and aspergillus. But it didn’t warn the public until 410 days after the first sales. Range Street, whose former owner declined to comment, has since surrendered its medical marijuana cultivation license.

Unlike other states, Colorado operates largely on an honor code, with manufacturers free to choose the samples and the labs that conduct contaminant tests required before products can be sold. Colorado regulators in January said they were considering requiring lab personnel to collect samples, which would bring Colorado in line with 26 of the 42 state marijuana markets. But the agency backed away from the proposal after top manufacturers argued it would increase costs.

Colorado also allows marijuana manufacturers to test their products far less frequently if they can show consistent compliance, something only one other state does. And the time frame for demonstrating that compliance can be as little as a few weeks.

Colorado’s regulators acknowledged at a 2023 industry forum that the reduced testing program “potentially poses risks to public health and safety,” as problems with the program were “a common occurrence” in investigations.

This January, the enforcement division noted in an industry bulletin that problems with that program persist, leading to recalls and advisories for unsafe levels of pesticides. The division told manufacturers in July that it is reviewing the reduced testing program as it considers a broader overhaul of testing rules. 

Colorado also has historically relied on complaints to identify tainted marijuana once it is actually in the marketplace, rather than randomly sampling products on shelves. The Cannabis Regulators Association recommends random sampling, and other states like Oklahoma have such programs. Colorado only this year launched a pilot program to randomly sample dispensary products, but the program has run into delays, and the state hasn’t identified a long-term funding source.

Once a contaminated product gets to dispensaries, Colorado regulators face challenges in getting the product off the shelves. Colorado expects manufacturers to voluntarily recall products. Regulators in Colorado can only force products to be recalled in a public health emergency, but regulators can encounter hurdles to quickly establishing that one exists.

Even when testing finds contaminants, manufacturers say marijuana that’s already in dispensaries often remains for sale. That’s because Colorado allows the manufacturer to retest the marijuana, and the rules don’t specify a time frame for when those tests have to be done. The rules state that the MED “may” require manufacturers to refrain from selling items during retesting.

In contrast, Missouri immediately puts a hold on all marijuana products that fail mandatory contaminant testing. Manufacturers there can have the products reanalyzed, but dispensaries can’t sell those products until retesting shows the original analysis was incorrect.

In an industry bulletin in January, Colorado regulators said the agency had seen “increased instances” of marijuana manufacturers taking advantage of the retesting rule to cover up the use of banned pesticides.

“Health Isn’t Really Their Primary Concern”

Tess Eidem, a research professor at the University of Colorado who has a federal grant to analyze the division’s health and safety bulletin process, said she worries the state prioritizes protecting the financial viability of the marijuana market over consumer safety.

She pointed out that the MED isn’t part of the state’s health department but instead is in the state’s revenue department. 

“So health isn’t really their primary concern,” she said.

Draper said that “consumer safety has been and remains a top priority for the Division.”

A woman wearing a long-sleeved purple shirt and dark-rimmed glasses holds a small dog in her lap. She sits on a leather couch in a room with yellow walls.
Since her diagnosis, Chatting spends most of her time at home, caring for her and her husband’s rescue pug mixes. Her doctor has warned that her liver will continue to deteriorate and will eventually require a transplant. Stephen Swofford/The Denver Gazette

In September 2024, a little over a year after Chatting stopped taking Midnight Drops, she and her husband went on a dream vacation to England, where they lived on a houseboat. The trip was such a success that they began planning to retire there, projecting that in about a decade they could downsize and spend their golden years traveling the canals through the English countryside where Luke was born.

A month later, Jenifer got a call from a doctor. Because she’s a former smoker, she had gone in for a routine lung screening. Her lungs were fine, but the X-ray detected something suspicious with her liver. A follow-up ultrasound detected cirrhosis.

Chatting’s gastroenterologist ruled out alcohol consumption, noting in her medical records that Chatting had always been a light drinker, and instead cited an herbal sleeping aid as a likely factor. After she stopped taking the drops, her liver enzymes came back into normal ranges, but the damage was already done, her medical records show.

Two days before Thanksgiving, Luke couldn’t sleep and rose about 2 a.m. to Google information about cirrhosis. He said it was then that he finally discovered the MED’s notifications about Midnight Drops.

He started slamming his fists on the armrests of his desk chair. One armrest broke, and his fist hit jagged plastic, fracturing his left hand.

“Jen, they killed you,” he recalled shouting.

She has few symptoms now, other than body cramps, but her gastroenterologist has warned that her condition will inevitably deteriorate and she will require a liver transplant in as little as five years.

Struggling to come to terms with the diagnosis, Jenifer now stays mostly indoors, building elaborate Lego artwork and spending time with their rescue pug mixes. 

“It’s hard because you think you’re doing something good for yourself and healthy and all natural,” she said. “And then it ends up being, you know … .” She stopped and gathered herself. “Just because something’s all natural doesn’t mean that it’s good for you.” 

Last September, Barsoom and his companies settled with the attorney general’s office to resolve the office’s investigation. Barsoom and his companies denied that they had violated consumer protection laws. But they agreed to pay $400,000 in fines, and the settlement bars them from selling cannabis products in Colorado until at least 2027. 

Barsoom also agreed to issue an apology. 

“We’ve always believed that great products should improve people’s lives,” his statement read. “When we learned that Midnight Drops wasn’t meeting that standard for everyone, we realized we had let our customers down. We are sorry that we didn’t act faster and communicate better with both our customers and regulators.”

The Chattings said Barsoom’s apology doesn’t amount to much for them, and they wish Colorado regulators had acted faster and communicated better with consumers.

“How are people supposed to know this?” Luke asked. “The only way I found this stuff was by digging and digging and digging on the internet.”

The post Regulators Knew This Marijuana Product Was Harming People. It Stayed on Shelves for More Than a Year. appeared first on ProPublica.

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