New York City Business Owner Ordered to Forfeit $400,000 in Illegal Cannabis Sales and Unpaid Taxes

NEW YORK– A business owner in New York City has been ordered to forfeit over $400,000 in illegal proceeds and unpaid taxes after illegally selling cannabis at multiple shops in Manhattan, according to the Associated Press. Rami Alzandani, the owner of the business, reached a non-prosecution agreement with the Manhattan District Attorney’s Office, allowing him to keep his stores open but prohibiting the sale of cannabis products.

Under the terms of the agreement, Alzandani must pay $103,000 in restitution to the state Department of Tax and Finance and forfeit an additional $300,000 in illegal proceeds. The district attorney’s office revealed that Alzandani’s stores, with the exception of one in Ridgewood, Queens, will be subject to regular inspections over the next three years to ensure compliance with the prohibition on selling cannabis products.

Alzandani pleaded guilty to criminal possession of cannabis in the second degree and received a $5,000 fine. Manhattan District Attorney Alvin Bragg emphasized the importance of public safety, stating, “When there is such a huge proliferation of unlicensed and unregulated storefronts selling cannabis products that have not been properly inspected, it undermines public safety.”

The district attorney’s office is actively pursuing other criminal investigations related to illegal cannabis sales and engaging in discussions with landlords to evict shops operating in violation of state law. In a recent development, the New York City Council Committee on Public Safety approved a bill that holds landlords accountable for knowingly leasing commercial premises to tenants selling cannabis without a license.

According to the bill, if an unlicensed retailer is discovered operating at a leased commercial site, the Sheriff’s Office under the NYC Department of Finance or another enforcement agency will issue a written warning to the landlord. This warning provides the landlord with knowledge of the tenant’s unlicensed activity and enables them to initiate eviction proceedings. If an unlicensed retailer continues to operate in the same commercial premises after receiving a warning, the landlord will face a fine of $5,000 for the first violation and $10,000 for subsequent violations.

The efforts to curb illegal cannabis sales in New York City reflect a broader push for regulated and licensed cannabis operations. By cracking down on unlicensed storefronts, authorities aim to safeguard public safety and ensure that cannabis sales adhere to proper regulatory standards.