Unlicensed New York Cannabis Retailer Hit with $9.5 Million Judgment

LOS ANGELES- A New York Supreme Court judgment has ordered George West, owner of Jaydega 7.0 in Canandaigua, to pay $9.5 million after findings that his business sold cannabis products without the required state license. This penalty includes $1 million in profit disgorgement and $8.4 million in daily fines imposed due to ongoing sales following a cease-and-desist order issued in June 2023 by the New York Office of Cannabis Management (OCM). The judgment also enforces a precedent under New York’s revised cannabis law, which allows the OCM and the attorney general’s office to request court intervention to permanently close non-compliant businesses.

New York Attorney General Letitia James stated that West disregarded repeated warnings, thus necessitating legal action. The judgment against Jaydega 7.0 follows the state’s broader initiative to curb unlicensed cannabis sales, which have proliferated amid slow licensing processes for legal dispensaries. This enforcement comes alongside a recent $15.2 million judgment against another unlicensed retailer, further underscoring the state’s approach to cracking down on illegal cannabis sales statewide

New York’s enforcement measures include substantial daily fines for operators violating cannabis laws, starting at $10,000 and potentially rising to $20,000 for persistent violations. The state’s Department of Taxation and Finance and other agencies are also now working with the OCM to conduct regular inspections and implement padlocking orders for businesses repeatedly found in non-compliance, a measure bolstered by new legislation passed in May 2023.