In a significant blow against illegal cannabis operations in New York, Attorney General Letitia James has secured a $9.5 million judgment against George West, the owner of an unlicensed dispensary in Ontario County. The hefty penalty serves as a stark warning to other operators who might be tempted to skirt the state’s cannabis regulations.
West, who ran Jaydega 7.0 on Main Street in Canandaigua, defied multiple warnings and a court order to shut down his business. He persisted in selling cannabis without a license, generating nearly $2.4 million in sales over a 16-month period, from September 2022 to January 2024.
The Office of Cannabis Management (OCM) had initially issued a cease and desist order in June 2023, followed by a judicial closure order in November 2023. However, West continued his illicit operations, only ceasing when forced to by the court.
The judgment includes over $1 million in disgorged illegal profits and $8.4 million in penalties for his ongoing violations. This hefty penalty underscores the seriousness with which New York authorities are taking unlicensed cannabis operations.
New York’s Cannabis Law mandates that all businesses involved in the cultivation, processing, or sale of cannabis obtain proper registration and licensing from the Cannabis Control Board. This ensures that products are lab-tested for safety, taxed, and regulated to protect consumers and communities.
The unlicensed cannabis market poses significant risks. Unlicensed dispensaries often sell products that have not undergone lab testing, leaving consumers vulnerable to potential health hazards. Additionally, these operations contribute to a lack of tax revenue that could be used to fund important state initiatives.
AG James emphasized the public safety implications, stating, “George West ignored our laws and repeatedly chose profit over public safety. This judgment sends a clear message that unlicensed cannabis sellers will face serious consequences.”
While New York has made strides in regulating the legal cannabis market, the presence of unlicensed dispensaries remains a challenge. Earlier this year, Governor Kathy Hochul and NYC Mayor Eric Adams collaborated to shut down over 1,000 illicit cannabis stores across the state.
The case against George West serves as a reminder that the state is actively pursuing enforcement actions against illegal cannabis operators. As the legal cannabis market continues to develop, efforts to curb unlicensed operations and protect consumers will remain a priority.