New York OCM Issues Statewide Recall, Charges Omnium Health for Cannabis License Violations

The New York State Office of Cannabis Management (OCM) released a statement declaring it had filed charges against cannabis processor and distributor Omnium Health (Omnium Canna) and had issued a statewide recall of associated products (1). The statement was released by the OCM on Monday, October 20, 2025.

Notice of Pleading Issued by NY OCM

In the press release, the OCM explains it has issued a Notice of Pleading (NOP), claiming Omnium had enabled an operation allowing unlicensed businesses to use its processing and distribution license to produce and package cannabis to state retailers. The NOP is alleging multiple violations from Omnium including aiding and abetting unlicensed processing, material misrepresentation, and failure to disclose substantial changes in business operations.

The actions allowed unlicensed business access to the regulated cannabis industry, damaging its integrity, the OCM added. "I have heard so many in New York cannabis call for fairness at every level,” said Felicia A. B. Reid, Executive Deputy Director of the Office of Cannabis Management. “Omnium’s alleged conduct is a blatant breach of the licensing rules designed to ensure transparency and fairness in the legal market. Our State’s cannabis laws are clear: licenses are not transferable and only licensed operators may produce and distribute cannabis. OCM’s move today ensures that regulated businesses do not exploit loopholes or take advantage to undermine legal operators who play by the rules.”

Investigation into Alleged Reverse Licensing

In February 2025, the OCM began its investigation after receiving a referral to the OCM Trade Practices Bureau (TPB) from the Compliance team. The investigation included reviewing audit and inspection records, reviewing Omnium and the unlicensed businesses’ contracts and audits, and collecting witness testimony. The OCM press release included photos of products and isolate allegedly involved in the operation.

The OCM alleges that “reverse licensing” occurred, because Omnium charged a fee for the unlicensed businesses to use its license, facilities, and resources. “Reverse licensing has no place in New York’s market,” stated James Rogers, Director, Trade Practices Bureau, in the press release. “This kind of cheating robs compliant businesses of their right to compete in a fair market. Acting Executive Director Reid set up the Bureau to address these kinds of threats to market integrity. The TPB team is grateful to all the individuals who came forward with crucial information and encourage others to do the same. If we work together, we can keep New York’s cannabis market above board.”

“Omnium's actions violated core principles of our regulatory framework and placed unvetted operators into the heart of New York’s legal market,” said Stephen Geskey, OCM Deputy Executive Director of Labs, Compliance, and Licensing. “This is a textbook example of reverse licensure, and OCM will not tolerate it.”

The press release also included details for an interview session on October 20 for press to speak with Gesky and Rogers.

OCM Seeking Penalties

The OCM listed the penalties it is seeking for the charges against Omnium Health:

• Revocation of both processor and distributor licenses
• Debarment from applying for future licensure
• Civil penalties related to the projected revenue from the sale or possession of the unauthorized cannabis products
• Retail recall from the market of all products made by unlicensed processors
• Destruction of unlawfully produced cannabis products

Cannabis Regulations in New York

In New York, the Marihuana Regulation & Taxation Act (MRTA), signed into law in 2021, legalized cannabis for recreational purposes and established the Office of Cannabis Management (OCM), which, alongside the Cannabis Control Board, regulates cannabis, issues licenses, and controls how businesses operate in the industry (2).

References

1. New York State Office of Cannabis Management. New York State Office of Cannabis Management files multiple charges against Omnium Health; orders statewide retail recall of Omnium-linked products. October 20, 2025. https://cannabis.ny.gov/system/files/documents/2025/10/omnium-compliance-action-release.pdf (accessed Oct. 22, 2025).
2. New York State Office of Cannabis Management. Marihuana Regulation and Taxation Act (MRTA). https://cannabis.ny.gov/marihuana-regulation-and-taxation-act-mrta (accessed Oct. 22, 2025).