In a landmark victory, New York Attorney General Letitia James secured a significant judgment against an illegal cannabis operation.
James obtained a $15.2 million ruling against David Tulley, who owned unauthorized cannabis shops "I'm Stuck" and "Weed Warehouse," for illegal sales and transgressions involving underage customers, as Newsweek reports.
This substantial judgment imposes penalties for illegal operations and will permanently bar Tulley from participating in New York's cannabis industry. The unlicensed dispensaries, situated in Cayuga, Oswego, and Wayne counties, have been at the center of numerous violations. Tulley is ordered to pay $7 million in disgorgement and $8.2 million in penalties for his unauthorized operations and for ignoring notices from the Office of Cannabis Management (OCM).
Included in the penalties are $10,000 per day for sales without a license and $20,000 per day for continuing these actions after a violation notice. Tulley is also penalized $5,000 for removing a violation notice from his Lyons location and must cover $1,324.98 in costs incurred by Attorney General James' office.
The illegal dispensaries involved, "I'm Stuck" and "Weed Warehouse," were found to be facilitating cannabis sales to minors, encompassing locations in Auburn, Lyons, Ontario, Williamson, Macedon, and Pulaski. This damning discovery was part of an undercover investigation conducted by James' office.
These operations were portrayed as consulting businesses by Tulley, despite regulatory notices from the OCM. Undercover investigators also found that the businesses employed deceptive advertising practices, such as an Easter egg hunt promising cannabis products as prizes.
Further scrutiny revealed that store clerks in Tulley's dispensaries failed to include taxes in purchase prices, an additional violation uncovered by the Attorney General's investigation.
OCM authorities issued cease-and-desist letters beginning in early 2022, yet Tulley persisted in his unauthorized operations. OCM inspections conducted in June and July 2023 led to significant seizures of cannabis products, but Tulley's unlawful sales continued unabated.
According to James, "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." She emphasized that this punishment sends a clear message to other unlicensed cannabis operations across the state.
David Tulley has voiced his intention to appeal the fines, disputing the allegations of selling to minors. He commented: "It's comical; it's dumb. No one has $15 million."
The Office of Cannabis Management has expressed strong support for the judgment, noting its significant impact. "This judgment delivers an unequivocal message to rogue operators that there is no sanctuary for illicit cannabis in New York State and that the ramifications will be impactful," the organization stated.
Attorney General James' decisive actions demonstrate the state’s commitment to upholding market integrity and community safety. This case underscores New York's firm stance against illegal cannabis operations and the serious consequences for those who flout established regulations.
In summary, Letitia James has successfully secured a $15.2 million judgment against David Tulley for his unlawful cannabis dispensaries. This verdict includes substantial fines, reinforces the ban on Tulley's cannabis operations in New York, and serves as a strong warning to other illicit operators in the industry.
