An owner of seven unlicensed cannabis shops in New York has been fined more than $15 million after state officials reported that he repeatedly ignored notices to stop operating without approval.
A State Supreme Court justice in Lyons, New York, imposed the fine on David Tulley on May 22. Acting Justice Richard Healy penalized Tully 90% of his gross sales from February 2022 to May 2023, as well as $10,000 for every day he operated without a license.
State Attorney General Letitia James said, “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,” and added that Tulley was also accused of illegally selling cannabis products to underaged customers.
Tulley owned and operated the “I’m Stuck” and “Weed Warehouse” businesses in Cayuga, Oswego, and Wayne counties in western New York. Tulley had told the Associated Press last year that his shops did not need state licenses because they only offered cannabis consulting and education for a fee and provided free samples. “We’re ready to go to war with New York state,” he stated at the time.
In April 2023, Tulley’s stores had advertised easter egg hunts in places including playgrounds and churches, according to the authorities. The eggs could be redeemed for cannabis products and children’s toys. A state investigator redeemed many eggs for a cannabis flower, edibles, seeds, and other products at one of Tulley’s stores in Macedon, authorities stated.
State officials shut down Tulley’s shops in July of last year.
New York has had difficulties in addressing the thousands of unlicensed retailers that have emerged after legal sales of marijuana began in the state in late 2022. The problem is prominent in New York City, where unlicensed retailers have operated with impunity.
Governor Kathy Hochul announced a ruling against David Tulley. The governor’s website stated, “We are putting an end to unlicensed cannabis shops that are undermining our laws and putting public safety at risk.”
Governor Hochul added that she has “committed to safeguarding our communities and supporting legal cannabis businesses by swiftly closing down these illegal operations. This ruling serves as a clear message to unlawful operators that New York State will not tolerate illicit cannabis activities and that the consequences will be severe.”
The judgment, which comes a month after Governor Hochul enacted her new enforcement powers, sets a precedent that empowers the State of New York to pursue prolonged closures for establishments that are found guilty of unlawful cannabis sales.
According to the governor’s website, Tulley’s judgment amounts to $15,253,954.10 in disgorgement and penalties, plus interest.
“This hefty fine is a thunderous wake-up call to rogue operators,” declared Daniel Haughney, the Director of Enforcement for the New York State Office of Cannabis Management. “New York State is not messing around when it comes to enforcing cannabis regulations. Our commitment to protecting consumers and ensuring the safety and integrity of the industry is rock-solid. This bold action against illegal activities shows just how serious we are about maintaining a fair playing field for legitimate businesses. It’s a pivotal moment for New York, underscoring our unwavering resolve to uphold the law and boot out unlawful operators from our communities. Your time in town is up.”
