That Must Have Hurt: Unlicensed Cannabis Shop Owner Slapped With $9.5M Fine

Zinger Key Points
  • An unlicensed dispensary owner was fined $9.5 million for operating without a license and ignoring a closure order.
  • New York's Attorney General emphasizes that unlicensed cannabis sales jeopardize public safety and violate state law.

New York Attorney General Letitia James announced a $9.5 million judgment against George West, the owner of an unlicensed cannabis dispensary in Ontario County. This sentence followed his refusal to comply with a June 2023 order from the Office of Cannabis Management (OCM) to cease operations.

West, who ran Jaydega 7.0 on Main Street in Canandaigua, continued selling cannabis without a license despite multiple warnings and a judicial closure order in November 2023. The judgment includes over $1 million in disgorged illegal profits and $8.4 million in penalties for his ongoing violations.

New York's Cannabis Law requires businesses to obtain proper registration and licensing from the Cannabis Control Board to legally cultivate, process, or sell cannabis.

  • Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you're serious about the business.

West operated without a license since at least September 2022. He recorded nearly $2.4 million in sales over a 16-month period. In June 2023, OCM seized over 200 pounds of cannabis products from Jaydega 7.0 during an inspection. He was then ordered to stop operating, but he continued his business until forced to close by court order.

Read Also: Buy A T-shirt, Get Busted: Loophole In Minnesota Cannabis Market Could Cost Retail Operators A 5-Year Ban

"George West ignored our laws and repeatedly chose profit over public safety," said AG James. "This judgment sends a clear message that unlicensed cannabis sellers will face serious consequences."

Unlicensed dispensaries sell cannabis products that are neither lab-tested nor taxed. The statement by AG James highlights the potential risks to consumers and communities.

Still, unlicensed cannabis makes up a large part of the cannabis market in New York.

Earlier this year, Governor Kathy Hochul and NYC Mayor Eric Adams shut down more than 1,000 illicit cannabis stores across the state.

Read Next: Cannabis Licensing And Finding Dispensaries In New York Just Got Easier—Here’s How

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