Attorney General James Secures $9.5 Million Judgment Against Unlicensed Cannabis Store Owner in Ontario County

 

Canandaigua Dispensary Owner Fined $9.5 Million for Selling Cannabis Without a License and Ignoring Notice to Stop Operating

New York Attorney General Letitia James today secured a $9.5 million judgment against the owner of an unlicensed cannabis dispensary in Ontario County. George West, the owner of the unlicensed dispensary Jaydega 7.0, ignored a June 2023 notice and order from the Office of Cannabis Management (OCM) to stop operating without a license. The Office of the Attorney General (OAG) and OCM obtained a judicial closing order that shut down Jaydega 7.0 in November 2023. The money judgment secured today requires West to disgorge more than $1 million of illegal profits he got from selling cannabis without a license and pay $8.4 million in penalties for continuing to sell cannabis after being ordered by OCM to stop.

“The owner of Jaydega 7.0 refused to follow the law and ignored repeated warnings to stop selling cannabis without a license,” said Attorney General James. “Today, George West must pay $9.5 million for violating our laws and hurting local communities. Stores that sell cannabis must abide by rules and regulations just like any other business in New York.”

New York’s Cannabis Law requires any person who cultivates, processes, or sells any cannabis product to be registered and licensed by the New York State Cannabis Control Board (Cannabis Board). The law imposes a $10,000 penalty for each day an individual sells cannabis without a license, and a $20,000 penalty for each day an individual continues to sell cannabis after receiving an order to cease operating from OCM. Additional revenue-based civil penalties may also be imposed based on the amount of the unlicensed sales. The $9.5 million judgment against West resulted from a combination of disgorgement, administrative fines, daily penalties, and revenue-based penalties for West’s unlicensed activities. 

George West operated his cannabis store on Main Street in Canandaigua and was selling cannabis without a license since at least September 2022. On June 28, 2023, OCM conducted an administrative inspection of Jaydega 7.0, confirmed West was selling cannabis without a license, and seized more than 200 pounds of cannabis and cannabis products. Following the inspection, OCM sent West a notice and order to stop operating and requested West provide an accounting and full financial disclosure of his operations at Jaydega 7.0. Although West refused to provide this information, OCM obtained financial records showing that West recorded nearly $2.4 million in sales revenue from June 2022 through October 2023. West continued to sell cannabis without a license until OCM and OAG obtained a court order mandating the closure of the Jaydega 7.0 store in November 2023.

Cannabis products sold by unlicensed businesses are not lab tested by OCM facilities, can be unsafe, and are not taxed. The OAG is authorized upon request by OCM to bring a proceeding against any person who violates the Cannabis Law.

Attorney General James thanks OCM for their collaboration.