Judge fines owner of unlicensed cannabis store $15 million

LYONS, N.Y. (AP) — The owner of seven unlicensed New York cannabis stores whose promotions included an Easter egg hunt has been fined more than $15 million after state officials complained that it had repeatedly ignored notices to stop its activities without authorization, authorities said.

A state Supreme Court judge in Lyon, New York, fined David Tulley on Wednesday. Acting Judge Richard Healy penalized Tulley 90% of his gross sales from February 2022 to May 2023 as well as $10,000 for each day he operated without a license.

“This penalty should serve as a clear warning to all unlicensed cannabis stores in the state: we will enforce the law and shut down your operations,” state Attorney General Letitia James said in a statement, adding that Tulley was also charged with illegal sale of cannabis. products to minor customers.

Tulley owned the “I’m Stuck” and “Weed Warehouse” businesses in Cayuga, Oswego and Wayne counties in western New York. He and his attorney did not immediately respond to text messages and phone messages seeking comment Thursday.

Tulley told The Associated Press last year that his stores did not need state licenses because they only offered advice and education on cannabis products for a fee and provided free samples. He also denied selling products to minors.

“We are ready to go to war with the State of New York,” he said at the time.

New York has struggled to deal with the thousands of unlicensed retailers that have emerged after legal sales began in the state in late 2022. The problem is particularly pronounced in New York, where unlicensed retailers have operated with impunity , often from sparkling windows.

State officials closed Tulley stores in July of last year.

In April 2023, its stores announced Easter egg hunts in public places, including playgrounds and churches, authorities said. The eggs could be exchanged for cannabis products and children’s toys, officials said. A state investigator traded numerous eggs for cannabis flower, edibles, cannabis seeds and other products at one of Tulley’s stores in Macedonia, authorities said.