Unlicensed New York cannabis operator is penalized $9.5 million

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An unlicensed cannabis retailer in upstate New York has been ordered to pay $9.5 million in one of the largest penalties levied in the state’s ongoing efforts to curb illicit operations.

State Supreme Court Judge Frederick Reed issued the judgment on Tuesday against George West, the owner of Jaydega 7.0, an unlicensed marijuana store in Ontario County, according to a news release from the office of New York’s attorney general.

West’s Jaydega 7.0 generated nearly $2.4 million in illegal sales from June 2022 through October 2023, New York’s Office of Cannabis Management (OCM) has alleged.

“The owner of Jaydega 7.0 refused to follow the law and ignored repeated warnings to stop selling cannabis without a license,” Attorney General Leticia James said in a statement.

“Stores that sell cannabis must abide by rules and regulations just like any other business in New York.”

In June 2023, the OCM seized more than 200 pounds of cannabis products at Jaydega 7.0 in the town of Canandaigua and subsequently sent West a notice and order to halt operations, the release from James’ office noted.

However, West continued to sell marijuana without a license until November 2023, when James’ office and the OCM obtained a judicial order mandating that West close Jaydega 7.0.

Under the judgment, West must:

  • Surrender more than $1 million of illegal profits to the state.
  • Pay $8.4 million in daily and revenue-based penalties for unlicensed activities as well as administrative fines.

New York law allows the OCM to assess civil penalties against unlicensed cannabis businesses, with fines starting at $10,000 per day and rising to $20,000 per day for the most egregious offenses.

Expanded enforcement efforts and penalties in New York were authorized under a law enacted in May 2023 by Gov. Kathy Hochul to help rein in thousands of unlicensed stores, trucks and bodegas selling illegal marijuana products throughout the state.