Owner of 7 Unlicensed New York Cannabis Shops Fined $15M

New York Attorney General Letitia James has slapped the owner of seven unlicensed cannabis shops in the state with fines amounting to $15.2 million, according to a CNYCENTRAL report.

David Tulley, owner of the “I’m Stuck” and “Weed Warehouse” unlicensed cannabis dispensary chains, ignored repeated notices and orders from the Office of Cannabis Management (OCM) to cease operations, the attorney general said.

Tulley’s businesses — located in Cayuga, Oswego, and Wayne counties — are accused of illegally selling cannabis without a license and selling cannabis to underage customers. The fines include $7 million as disgorgement of the companies’ illegal profits and $8.2 million in penalties for operating without a license and ignoring multiple warnings and notices from officials.

“These illegal and unlicensed stores are budding up throughout the state and are hurting our communities. Today, David Tulley is paying the $15 million price for his repeated illegal activity and will be permanently banned from the cannabis industry in New York. This punishment should serve as a clear warning for all unlicensed cannabis stores in the state: we will enforce the law and shut down your operations.” — AG James, in a statement

New York law imposes a $10,000 penalty per day of selling cannabis without a license, and a $20,000 penalty per day of continuing to sell cannabis after having been ordered to stop by officials.

The move is the state’s most significant enforcement action against illegal cannabis shops since Gov. Kathy Hochul (D) called the legal industry’s rollout a “disaster” in February, ordered an extensive audit of the state’s cannabis regulations in March, and, earlier this month, announced the impending departure of the state’s top cannabis regulator.