An unlicensed cannabis store in New York has been fined nearly $10m under the state’s ongoing campaign to quash its rampant illicit market.
George West, the owner of Jaydega 7.0 in Canandaigua, has been fined $9.5m for ignoring a cease-and-desist order to stop selling cannabis without a legal license.
The judgment, handed down by New York State Supreme Court Justice Frederick Reed of Ontario County, includes a combination of fines: West must pay over $1 million in illicit profits and an additional $1.78 million for operating the shop for 89 days after receiving a cease-and-desist order from the Office of Cannabis Management (OCM).
Furthermore, he was fined more than $6.6 million based on five times the revenue generated from prohibited sales after May 2023.
In May 2024, New York authorities launched ‘Operation Padlock to Protect’ in a renewed effort to use ‘the full force of the law’ to shut down illegal cannabis shops and block their continued profileration.
Under the new plan, the Office of Cannabis Management was given the authority to ‘padlock’ businesses immediately following an inspection if they are selling illicit cannabis.
It also took aim at ‘landlords who turn a blind eye to illegal activity’. Now, any landlords who fail to bring forward eviction proceedings against tenants in violation of the law will face a $50,000 fine, or five times the rent from the time the landlord was notified of the violation.
Earlier in 2024, a $15.2 million judgment was issued against David Tulley, who ran seven unlicensed dispensaries in upstate New York. The state is sending a strong message to illegal operators, highlighting the severe financial consequences of operating outside of the legal framework.
This topic and more will be discussed in detail at Business of Cannabis: New York on November 12 at the New York Academy of Medicine. Grab your tickets now.
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