2 Million Fine for Selling to Minors

Rochester, N.Y. - Several unlicensed cannabis stores in the Finger Lakes region are under investigation after allegedly selling to underage customers. The owner of the "I'm Stuck" chain of shops, David Tulley, could face a hefty fine of $15.2 million. These stores, including one on Lyell Avenue in Rochester, have now been shut down as a result of the ongoing investigation by the Office of Cannabis Management.

The accusations against Tulley involve illegal cannabis sales and the violation of cannabis regulations across multiple counties in Upstate New York. The Office of Cannabis Management, in collaboration with the New York State Attorney General's Office and local law enforcement agencies, launched an extensive investigation that began with tips from local law enforcement in 2022.

According to Daniel Haughney, the director of enforcement for the Office of Cannabis Management, cease and desist orders were issued to Tulley initially, but he failed to comply. Subsequently, changes to the law granted authorities the power to conduct regulatory inspections at Tulley's locations. These inspections revealed that the stores were operating as unlicensed cannabis dispensaries, prompting the issuance of notices of violation and additional cease orders. Despite these actions, Tulley continued to operate in defiance.

Legal action was then pursued, and closure orders were obtained from Wayne County Supreme Court, effectively restraining Tulley from engaging in further illegal cannabis sales. The investigation by the New York State Attorney General's Office, involving undercover purchases, alleged that Tulley's businesses were selling cannabis to minors. However, Tulley vehemently denies this claim, stating that they have never sold to minors.

The judgment ruling against Tulley stipulates a fine of over $15.2 million. The fine includes penalties of $10,000 per day for selling cannabis without a license, $20,000 per day for continuing unlicensed sales after receiving a Notice of Violation, a $5,000 penalty for removing the Notice of Violation from his Lyons location, and the costs incurred by the Attorney General's Office in handling the case, totaling $1,324.98.

"This significant fine sends a clear message to illicit operators that the state will vigorously enforce cannabis regulations to ensure the safety and integrity of the industry," stated Haughney. Tulley, however, questions why such fines were not imposed on individuals selling pot on street corners when it was illegal. He views the situation as illogical and criticizes the authorities' approach.

As Tulley plans to appeal the fine, the cannabis industry in the Finger Lakes region remains under scrutiny. The ongoing investigation and subsequent legal actions signal the state's commitment to maintaining the integrity of the legalized cannabis market and discouraging illicit operations.