New York Imposes $15.2 Million Fine on Owner of Unlicensed Cannabis Shops

NEW YORK- The owner of seven unlicensed cannabis shops in New York has been fined $15.2 million for operating without a license, ignoring multiple official notices, and selling cannabis to underage customers. New York Attorney General Letitia James announced the fines against David Tulley, owner of the “I’m Stuck” and “Weed Warehouse” chains, as reported by CNYCENTRAL.

Tulley’s businesses, located in Cayuga, Oswego, and Wayne counties, faced repeated warnings from the Office of Cannabis Management (OCM) to cease operations. The fines include $7 million for disgorgement of illegal profits and $8.2 million in penalties for unlicensed operations and non-compliance with official notices.

“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,” Attorney General James stated.

Under New York law, selling cannabis without a license incurs a $10,000 daily penalty, while continuing sales after an official order to stop results in a $20,000 daily penalty.

This enforcement action is the most significant since Governor Kathy Hochul called the rollout of the legal cannabis industry a “disaster” in February, initiated an extensive audit of the state’s cannabis regulations in March, and announced the impending departure of the state’s top cannabis regulator earlier this month.