In October 2012, a state investigator discovered multiple illegal, after-hours sales of medical marijuana at VIP Cannabis in Denver.

Further inspections a month later and the following spring found more problems, from incomplete record-keeping to failures to track inventory and high plant counts that lacked documentation.

But it wasn’t until last week — in the aftermath of high-profile federal raids on VIP and related marijuana businesses in November — that state regulators moved to shut down the business, sending notices of denial to VIP and three related medical marijuana operations.

The businesses also were ordered not to sell or transfer marijuana in their possession and control. VIP Cannabis promoted a marijuana-infused cookie sale on its Facebook page during the weekend and was open Tuesday, which a state official said would be investigated.

“With all situations, our primary focus is always going to be public safety,” said the official, Julie Postlethwait, spokeswoman with the state Marijuana Enforcement Division. “If we see a situation that is really egregious and very concerning, we can always take immediate action. But as with every regulated industry, there is an administrative process.”

That means giving businesses opportunities to make fixes, and appeal.

The businesses have 60 days to request a hearing to challenge the denials.

If the state prevails — or the businesses withdraw their applications — the companies’ marijuana must be destroyed in the presence of state officials or the state will seize it, Postlethwait said.

The findings against VIP are outlined in a notice of denial that The Denver Post obtained in an open-records request.

On Nov. 21, federal agents executed search warrants on 14 businesses, including VIP, and two homes in the largest raid on Colorado’s medical marijuana industry. Sources have told The Post that federal investigators are looking at possible connections to Colombian drug cartels, which the targeted individuals have denied. None of the 10 named subjects has been charged.

The recent denials were part of a final batch of pending state license applications that date as far back as summer 2010.

The businesses were allowed to operate while the state processed their licenses, and only recently have officials cleared the backlog.

As of Monday, only eight businesses were operating without licenses.

The recent denials all involve businesses that share ownership or association with VIP Cannabis:

• VIP Cannabis at 2949 W. Alameda Ave. in Denver, three related grow warehouses and the license of owner Carlos Solano.

• Grateful Meds in Nederland, one related grow and licenses of owners David Furtado and Robert Gimenez.

• Kushism, at 2527 Federal Blvd. in Denver, and an associated grow.

• Highlands Cannabis Company at 3355 W. 38th Ave. in Denver, a related grow and the license of owner John Esmeral.

Records connect those businesses to additional owners and individuals.

Postlethwait said other investigations are ongoing.

The violations in the denial letter overwhelmingly come from inspections conducted before the Nov. 21 federal raids. They include shortcomings involving record-keeping, video surveillance, inventory tracking, product labeling and waste disposal.

Two of the dispensaries, Kushism and Highlands Cannabis Company, have been closed since the raids. The Nederland dispensary closed when its lease expired last month, Furtado said.

The denial notices — sent last week — included “administrative holds” that prohibit the businesses from selling or transferring marijuana in their possession or control.

Denver lawyer Sean McAllister represents Gerardo Uribe, one of the raid targets associated with VIP Cannabis.

McAllister said VIP has not sought a court order that would allow it to remain open. He suggested the administrative hold does not cover additional marijuana purchased from a wholesaler, a path VIP took to reopen after the raids.

McAllister declined to comment on the case involving VIP but said in general the state is making “broad-brush, vague allegations” that are impossible for owners to address. He said the state has shifted from working with the industry to moving to shut down dispensaries.

“The agency is going through a sham process without due process,” McAllister said.

VIP’s owners have expressed a willingness to get out of the business, including selling, he said.

Furtado said he is trying to sell Grateful Meds and is considering requesting a hearing or withdrawing his application. He said some violations were either fixed or minor. The denial notice cited failure to get a permit for changing locations or maintaining surveillance footage, among other items.

“If they can nitpick on stuff like this, they can deny every shop in the state,” Furtado said. “Nobody is trying to commit any crimes here.”

Another raid target, Laszlo Bagi, withdrew his license applications after receiving notices of denial.

Eric Gorski: 303-954-1971, egorski@denverpost.com or twitter.com/egorski

Denver Post staff writer John Ingold contributed to this report.