Governor Kathy Hochul, Attorney General Letitia James, and the Office of Cannabis Management (OCM) announced the closure of seven unlicensed cannabis dispensaries operating under the chain name “I’m Stuck” in Upstate New York. The stores, located in Cayuga, Oswego, and Wayne counties, were found to be illegally selling cannabis to underage customers and processing cannabis products without proper licensing, risking significant health hazards. The owner, David Tulley, faces potential fines in the millions.
In a joint action utilizing new enforcement powers granted as part of the FY24 Enacted Budget, these closures represent the first instance of illegal cannabis stores being padlocked shut in the state. Tulley, whose chain has eight locations across the region, had ignored repeated notices from OCM to cease unlicensed operations. Undercover investigators also found multiple instances of sales to minors.
Governor Hochul emphasized the importance of the legislation in protecting New Yorkers, stating, “As we work to build and expand the legal cannabis market, it’s critical to crack down on illegal operators who are breaking the law.” Attorney General James pointed out that Tulley’s actions not only violated the law but also “endangered our kids by selling unregulated cannabis to underage customers.”
New York’s Cannabis Law requires all cultivators, processors, or sellers of cannabis products to be registered and licensed. Chris Alexander, Executive Director of New York State’s OCM, said, “Selling cannabis without a license remains illegal in the state of New York,” warning that unlicensed operators pose risks to public health and shortchange communities depending on revenue from legal sales.
The action against “I’m Stuck” included evidence from undercover operations where OAG investigators were able to purchase cannabis products, and observations of sales to underage customers, including a promotional Easter egg hunt involving cannabis products. In total, inspections led to the seizure of 47 pounds of cannabis flower, 244 pounds of cannabis edibles, and 89 pounds of cannabis concentrate.
The effort to shut down Tulley’s stores involved coordination with various state agencies, including the New York State Police and the Department of Taxation and Finance. The petition filed not only seeks to close Tulley’s stores and impose financial penalties on him but also aims to fine the building owners where the stores are located. Penalties under the Cannabis Law can be as high as $10,000 per day for individual sellers and $20,000 per day for continued operations after receiving an order to cease from OCM. The case underscores the state’s commitment to enforcing newly enacted cannabis laws and its vigilance against unlawful operators.
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