Notice of Pleading Issued By New York OCM to Omnium Canna

On October 20, 2025, the Office of Cannabis Management (OCM) issued a Notice of Pleading (NOP) to Omnium Canna, due to “actions amounting to a failure to meet its compliance obligations as a licensee,” (1).

According to the press release (1), the alleged conduct includes:

• A scheme to ‘rent out’ its license to unlicensed businesses (known as “reverse licensing”), permitting these businesses to access and use Omnium resources and facilities to produce cannabis products;
• The sale of cannabis product to unlicensed processors;
• The introduction of untracked product into the legal cannabis market; and
• The concealment of material agreements from OCM.

“The job of a cannabis regulator is to build structure and set expectations for an industry. It requires constant vigilance, while working to keep the integrity of the statutory scheme, build out market opportunities and access points, and hold industry actors accountable,” says Felicia A.B. Reid, Acting Executive Director of OCM in the press release (1). “But some will always bet that regulation means posture without power. Overlay New York’s social and economic equity mandate—which flips the usual cannabis legalization script in favor of small business, community impact, and restorative justice—and the work of regulation becomes something more.” Reid added (1), “It becomes a question about who we are as New Yorkers, what we believe, and what it means to truly work in service to the public—not just for the present, but in recognition of the past as the cannabis industry moves forward into its future.”

The Office of Cannabis Management created the Trade Practices Bureau (TPB) in the organization where it has worked on growing staffing in the organizations’ programs and operations.

As mentioned in the press release, OCM will be taking action against Omnium Canna by (1,2):

• Pursuing the revocation of Omnium's license.
• Seeking a three-year prohibition of Omnium's participation in the New York cannabis industry.
• Seeking $1 million in fines against Omnium Canna.
• Initiating a retail recall of Omnium products from New York dispensary shelves.

“OCM does not take action against Omnium impulsively—to move without considering short- and long-term impact would be woefully shortsighted. In this case, and others to come, due diligence and intra-agency collaboration is critical to effectiveness. The TPB built the case against Omnium over several months, with analysis and support from OCM’s compliance, legal, and policy teams. OCM Chief Equity Officer, L. Simone Washington was a partner in this process, ensuring that the agency thought through the social and economic equity implications as the case developed,” Reid expressed in the press release (1). “Recalling Omnium’s products from dispensaries will present short-term challenges for some retailers and consumers. However, OCM assesses that the impact will likely be modest and fleeting. The long-term outlook for the New York cannabis market remains strong, and OCM expects other licensed and compliant processors—those small businesses marginalized by Omnium’s alleged conduct—to move quickly to fill retail supply gaps.”

Utilizing August 2025 Data the press release disclosed a “Market Impact Snapshot” of the impact the OCM’s actions on Omnium Canna may have in the New York marketplace (1):

• Approximately 3% of total retail sales, state-wide, were Omnium-linked products (licensee self-reported).
• Only 4% of impacted retailers, statewide, had 10% or more of sales from Omnium-linked products.
• Although Omnium does business across the state, its strongest retail presence is downstate, particularly on Long Island.
• SEE licensees do not disproportionately re on Omnium-linked products relative to licensees across the overall market.

References

1. Reid, F. A. B. Accountability in action: OCM issues charges against omnium canna https://cannabis.ny.gov/news/accountability-action-ocm-issues-charges-against-omnium-canna (accessed Oct 31, 2025).
2. McEvoy, E. New York OCM issues statewide recall, charges Omnium Health for cannabis license violations https://www.cannabissciencetech.com/view/new-york-ocm-issues-statewide-recall-charges-omnium-health-for-cannabis-license-violations (accessed Oct 31, 2025).