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New York Fines Illicit Cannabis Shop Owner $15.2 Million

That includes $8.2 million in penalties and about $7 million to reimburse illegal profits.

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New York Attorney General Letitia James today secured a $15.2 million judgment in disgorgement and penalties against the owner of seven unlicensed cannabis dispensaries in Cayuga, Oswego, and Wayne counties for operating these stories without a license and for illegally selling cannabis to underage customers.

David Tulley, the owner of the unlicensed dispensary chain called “I’m Stuck” and “Weed Warehouse,” ignored repeated notices and orders from the Office of Cannabis Management (OCM) to stop operating. Attorney General James, Governor Hochul, and OCM shut down Tulley’s unlicensed cannabis stores in July and secured eviction notices from the landlords where Tulley’s stores were located. The judgment secured today requires Tulley to pay $7 million in disgorgement, the illegal profits he got from selling cannabis without a license, and $8.2 million in penalties for operating without a license and ignoring OCM notices.

“David Tulley illegally sold cannabis in multiple stores across upstate and central New York and sold unregulated products to underage customers,” said Attorney General James. “These illegal and unlicensed stores are budding up throughout the state and are hurting our communities. Today, 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. 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.”

New York’s Cannabis Law requires any person who cultivates, processes, or sells any cannabis product to be registered and licensed by the New York State Cannabis Control Board (Cannabis Board).

The 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. Tulley was fined $10,000 per day for selling cannabis without a license, totaling $3.89 million. He was also fined $20,000 per day for continuing to sell cannabis after receiving an order to cease from OCM, totaling $4.34 million. Tulley was ordered to pay $7.01 million in disgorgement for the illegal profits he made from the seven unlicensed cannabis stores. In total, Tulley is required to pay $15.2 million in disgorgement and penalties.

Tulley operated retail cannabis stores in Cayuga, Oswego, and Wayne counties and was selling cannabis without a license since at least early 2022, before OCM began issuing licenses.

Undercover investigators from the Office of the Attorney General (OAG) visited multiple “I’m Stuck” locations owned by Tulley and were able to purchase cannabis products. During the undercover operations, OAG investigators observed that multiple “I’m Stuck” stores sold cannabis to individuals under the age of 21.

Cannabis products sold by unlicensed businesses are not lab tested by OCM facilities, can be unsafe, and are not taxed. The OAG is authorized upon request by OCM to bring a proceeding against any person who violates the Cannabis Law.

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