The penalty consists of "a mix of disgorgement, administrative fines, daily penalties, and revenue-based penalties."
A small store in upstate New York near Rochester has been slapped with a $9.5 million fine after the owner disregarded a cease-and-desist order to halt cannabis sales without a license.
George West, the proprietor of Jaydega 7.0 in Canandaigua, received the hefty penalty this week from Attorney General Letitia James.
In a news release, James stated that West had been issued the cease-and-desist notice in June 2023, following the determination by the state Office of Cannabis Management that he had been selling marijuana without a permit since at least September 2022.
In November of the previous year, the OCM and James secured a court order mandating the shop's closure. This month, the court further required West to forfeit over $1 million in illegal profits from unlicensed marijuana sales, along with an $8.4 million fine.
"The owner of Jaydega 7.0 chose not to comply with the law and ignored multiple warnings to cease selling cannabis without a license," James remarked in a statement. "West is obligated to pay $9.5 million for breaking our laws and harming local communities. Cannabis stores must follow rules and regulations like any other business in New York."
State law empowers officials to fine businesses like West's up to $10,000 per day for unlicensed marijuana sales and up to $20,000 per day for continuing such activities after a cease-and-desist order is issued.
The $9.5 million ruling against West comprises “a mix of disgorgement, administrative fines, daily penalties, and revenue-based penalties,” according to a release from James’ office.
Throughout its investigation of the store, the OCM acquired records revealing that West generated at least $2.4 million in sales revenue between June 2022 and October 2023. James’ office concluded that the Jaydega store “persisted in selling cannabis without a license” until the court issued an order to close it in November of the previous year.
The substantial fine is not unprecedented. In May, James declared a $15.2 million judgment against David Tulley, an entrepreneur who operated a chain of seven unlicensed cannabis stores in upstate New York.
