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NYS Shuts Down Cayuga, Wayne County Pot Shops

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Seven unlicensed pot shops in Upstate New York were shut down today, Monday, by the state.

According to the Attorney General’s Office, “I’m Stuck” has been illegally selling cannabis to underage customers in Cayuga, Oswego, and Wayne Counties since at least early 2022. The chain is also accused of not collecting tax on the items they sold. The office claims investigators observed clerks selling cannabis without a license and to minors on multiple occasions. In May of 2023, the Auburn and Ontario stores failed stings where investigators were able to purchase marijuana products for minors under the legal age of 21.

The chain is also alleged to have illegally processed and packaged cannabis products without a license, thus posing health risks to consumers.

With the assistance of State Troopers, the Office of Cannabis Management (OCM) and the Attorney General’s Office shut down Tulley’s shops in Auburn, Lyons, Macedon, Ontario, Pulaski, and Williamson. They are to be the first stores in the state padlocked shut.

Under state law, those wishing to cultivate, process, or sell cannabis products must be licensed by the state’s Cannabis Control Board. Legislation signed by the governor earlier this year authorized the Attorney General’s Office to bring proceedings against any person who violates cannabis laws, upon request of the OCM.

The stores claim to be consulting firms, advising people on which marijuana product would be best for them. The marijuana is then given as a gift.

According to the state, chain owner David Tulley was sent a cease and desist order by the OCM to stop operating his businesses without a license as well as issuing violations to his stores.

“Legalizing cannabis in New York was a historic milestone to correct the harms of the past, but there are laws that must be followed to ensure cannabis products are safe and kept out of the hands of minors,” said Attorney General James. “David Tulley brazenly violated our laws, cheated taxpayers, and endangered our kids by selling unregulated cannabis to underage customers. [Monday]’s enforcement action should send a clear message that businesses that are selling cannabis without a license will be stopped. I thank Governor Hochul and her administration for their partnership on this effort to protect New Yorkers.”

In April 2023, an Easter Egg hunt was advertised by his stores in Cayuga, Monroe, Wayne, Onondaga, and Yates Counties where Easter eggs were scattered in public places and could be redeemed for prizes, including pot products and children’s toys. Investigators were able to redeem numerous eggs for pot products at the Macedon location.

Between June and July, over 47 lbs of cannabis flower, 244 lbs of edibles, and 89 lbs of concentrate were seized from his stores and the seven locations were ordered to cease unlicensed operations. Tulley ignored the order and remained open.

Tulley faces millions of dollars in fines. The Cannabis Law imposes a $10,000 penalty for each day in which an individual sells cannabis without a license, and a $20,000 penalty for each day an individual continues to sell cannabis after receiving an order to cease operating from OCM.

Civil penalties are also being sought against the seven building owners for allowing the illegal activity to operate on their property. They can be fined $10,000 per day for their inaction.

“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 and undermining the success of entrepreneurs and consumers who follow the rules,” said Governor Hochul. “This year I fought to enact new legislation that protects New Yorkers by granting new power to state agencies and our Attorney General to take new enforcement actions against bad actors. New York will continue to fight for an equitable cannabis industry that rights the wrongs of the past while protecting the health and safety of all New Yorkers.”  

“Selling cannabis without a license remains illegal in the state of New York. We have repeatedly warned operators who are violating the state’s cannabis laws that they would be held accountable for shortchanging communities who are counting on revenue from adult-use sales and endangering the public health of cannabis consumers with poorly processed cannabis products,” said Chris Alexander, Executive Director, New York State’s Office of Cannabis Management. “When visiting legal cannabis businesses in New York, you can purchase products you trust that were safely processed from seed to sale. When you buy products from unlicensed operators, you are putting your health at risk. I thank the Governor and Attorney General for their commitment to shutting down the unregulated cannabis market.”   

“Untaxed cannabis sales deprive the state of revenues meant for community investment and significantly undercut licensed facilities,” said New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller. “Working with OCM and our partners in law enforcement, we will continue to aggressively enforce the law.”  

“Illicit retail sales of any kind will not be tolerated in New York state. Efforts to intercept illegal business practices are an integral part of protecting our communities and send a clear message to business owners that there will be consequences,” said New York State Police Acting Superintendent Steven A. Nigrelli. “I want to thank our law enforcement partners for their diligence in halting illicit operations by unlicensed cannabis dispensaries and stopping the distribution of their products. The New York State Police stands ready to assist in holding owners accountable.”  

Cayuga and Wayne County Cannabis Businesses Raided

 

 

 

 

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