New York Cannabis Equity Chief Resigns After Being Cleared of Retaliation

Damian Fagon, New York’s chief equity officer at the Office of Cannabis Management (OCM), has stepped down from his position, effective November 27th. This comes despite his recent exoneration from accusations of retaliation. Fagon’s resignation follows a tumultuous period marked by controversy, starting with his administrative leave in March after cannabis processor Jenny Argie alleged he retaliated against her company.

Argie’s lawsuit, which claimed Fagon initiated a product recall after she criticized the OCM, was withdrawn in July. An investigation conducted by the state’s inspector general concluded that the allegations against Fagon were baseless.

In a statement released on Friday, OCM’s acting executive director, Felicia Reid, confirmed Fagon’s exoneration but acknowledged his decision to leave the department. “Mr. Fagon will be on leave and will focus solely on transitioning his equity portfolio to OCM leadership. This announcement comes after the conclusion of the NYS Inspector General investigation, which resulted in a determination that the allegations were unsubstantiated,” Reid said.

She further expressed her gratitude for Fagon’s contributions, stating, “I know that Mr. Fagon has done tremendous work leading OCM’s equity efforts, setting up OCM to take the most innovative and equity-driven approach to the development of New York’s cannabis industry. I am thankful to him for his time and talent. I wish him well and great success in his future endeavors.”

Fagon played a pivotal role in shaping New York’s cannabis equity program, aiming to ensure marginalized communities, disproportionately affected by previous marijuana laws, were included in the industry’s growth.

The OCM itself is experiencing a period of substantial leadership change. Fagon’s departure follows the resignation of former executive director Chris Alexander in May, with Reid serving as interim executive director since her appointment by Governor Kathy Hochul. The OCM is actively seeking a permanent replacement for Alexander, but the future of the equity program without Fagon at the helm remains uncertain.

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