New York Attorney General Letitia James successfully obtained a $15.2 million judgement against an unlicensed cannabis dispensary chain owned by David Tulley that operated in multiple locations across three counties in the state. The judgment, issued by New York Supreme Court Judge Richard Healy, includes $7 million in disgorgement for illegal profits, $8.2 million in penalties for operating without a license, and additional fines for various violations. Tulley must forfeit 90 percent of his earnings at each location between February 2022 and May 2023 as part of the penalty.
The penalties against Tulley also include fines for selling cannabis without a license, continuing unlicensed sales after receiving a violation notice, removing a violation notice at a specific location, and covering the costs incurred by Attorney General James’ office. James stated that illegal and unlicensed cannabis stores are harming communities, and Tulley’s punishment, along with being permanently banned from the industry, should serve as a warning to other unlicensed stores. The judgment against Tulley is described as groundbreaking by the Office of Cannabis Management, sending a clear message to rogue operators that illicit cannabis will not be tolerated in New York State.
Tulley operated multiple dispensaries in various locations, and he has expressed disbelief at the fines, claiming he never sold to minors. He plans to appeal the judgment, questioning the practicality of the $15 million penalty. Tulley was initially warned by the Office of Cannabis Management with cease-and-desist letters in early 2022 for violating regulations. Undercover investigations revealed deceptive advertising practices and sales to minors, leading to seizures of cannabis products during inspections. Despite multiple warnings and enforcement actions, Tulley continued to operate, prompting James’ office to permanently close the locations.
The involvement of James’ office in pursuing penalties against Tulley underscores the state’s commitment to enforcing cannabis regulations and ensuring the safety and integrity of the industry. Daniel Haughney, director of enforcement for the Office of Cannabis Management, emphasized the importance of upholding the law and rooting out illegal operators from communities. The judgment against Tulley marks a pivotal moment for New York State in demonstrating its dedication to protecting consumers and maintaining a level playing field for legitimate cannabis businesses. The significant fine serves as a deterrent to illicit operators, reinforcing the message that illegal activities will not be tolerated in the state.
Overall, the $15.2 million judgment against David Tulley’s unlicensed cannabis dispensary chain highlights the state’s efforts to crack down on illegal cannabis operations and enforce regulations to protect consumers and legitimate businesses. Attorney General Letitia James’ successful pursuit of penalties against Tulley sends a strong message to illicit operators that there will be consequences for violating the law. The involvement of the Office of Cannabis Management in inspections and enforcement actions further demonstrates the state’s commitment to upholding regulations and ensuring the integrity of the cannabis industry in New York.
