As the New York quest to shutter the state’s thousands of unlicensed marijuana shops continues, state Attorney General Letitia James announced Thursday that she scored a significant win in that fight, with a $15.2 million fine levied against one operator of an illicit chain of stores.
James said David Tulley was guilty of operating seven unlicensed marijuana dispensaries across three counties in upstate New York, which did business as “I’m Stuck” and “Weed Warehouse.”
Tulley ignored warnings from the state Office of Cannabis Management to cease operations, until authorities obtained eviction notices for each of the seven shops last July in Cayuga, Oswego, and Wayne counties, James said.
Tulley was one of the first major cannabis industry targets last year after new civil powers were granted to the OCM, the attorney general, and other law enforcement agencies to crack down on unruly marijuana businesses with civil fines and other steps.
The new court order that levies the fines against Tulley, includes a $7 million disgorgement of ill-gotten proceeds from the shops, along with an $8.2 million penalty for selling cannabis without the proper permits and to minors.
“David Tulley illegally sold cannabis in multiple stores across upstate and central New York and sold unregulated products to underage customers,” James said in a statement. “These illegal and unlicensed stores are budding up throughout the state and are hurting our communities. … 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.”
The fine is easily the largest thus far announced by New York authorities, since state agents were given the power last year to issue fines of up to $20,000 a day for illicit cannabis sales.
Undercover officers from James’ office visited multiple dispensaries owned by Tulley during a sting operation last year and repeatedly observed cannabis sales to customers under the age of 21, along with making illegal purchases of their own from Tulley’s stores.
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