Various Unlicensed Cannabis Stores Shut Down in New York

In New York, law enforcement agencies and cannabis regulators recently reported that they shut down seven unlicensed cannabis stores (1). These businesses were located in Oswego, Wayne, and Cayuga counties.

One of the unlicensed establishments was called “I’m Stuck” and they were accused of selling cannabis without approval from the state’s Office of Cannabis Management (OCM). They were also accused of processing and packaging cannabis products without a license, according to The Auburn Citizen.

A news release from the New York State Attorney General Letitia James (1) reported that these businesses were also suspected by authorities of selling cannabis products to minors which is illegal. David Tulley the owner and operator of eight unlicensed cannabis stores, who state officials claim to have been selling cannabis without having a license since at least early 2022. This would be before the OCM started issuing permits.

According to MJBiz, investigations into six of the stores showed (1):

• The outlets in April advertised an Easter egg hunt in several counties where eggs were scattered around public places and could be redeemed for prizes, including cannabis products and children’s toys.
• A Facebook page offered hints that Easter eggs could be found at playgrounds, trails and churches.
• An investigator from the AG office collected Easter eggs and then redeemed marijuana flower, edibles, cannabis seeds and other products at a store in Macedon.
• In June and early July, inspections resulted in the seizure of more than 47 pounds of cannabis flower, 244 pounds of cannabis edibles, and 89 pounds of cannabis concentrate.

Tulley went against state officials’ cease-and-desist orders and notices of violation from the beginning of 2022 (1). He claimed to regulators that his establishment was a consultancy which offered free cannabis products to customers.

The state of New York is planning on shutting down Tulley’s businesses as soon as possible as well as prohibiting his companies from dispensing, distributing, and delivering cannabis products in the state.

Through new laws that are now able to be enforced, New York has the ability to impose a $10,000 penalty each day for illegal cannabis sales and a $20,000 fine per day on businesses that are selling cannabis products still after getting an OCM order to stop operations (1).

The state will also be looking to give civil penalties to seven building owners who allowed Tulley to lease space where he ran an unlawful business and operated on their properties. In New York, building owners could face fines of $10,000 per day due to this. These investigations also involve the New York State Police and Department of Taxation and Finance.

Reference

1. Casacchia, C. Seven Unlicensed Marijuana Stores Shut Down Across New York https://mjbizdaily.com/seven-unlicensed-marijuana-stores-shut-down-across-new-york/ (accessed Aug 1, 2023).