New York Attorney General Letitia James recently obtained a $9.5 million judgment against the proprietor of an unauthorized cannabis store in Ontario County. George West, the owner of the illegal dispensary Jaydega 7.0, ignored the Office of Cannabis Management’s (OCM) June 2023 warning and order to cease operations without a license. The Office of the Attorney General (OAG) and the Office of Community Management (OCM) received a judicial closing order, which would close down Jaydega 7.0 in November 2023. Today’s money judgment demands that West disgorge more than $1 million in illicit earnings from selling cannabis without a license, and pay $8.4 million in penalties for continuing to sell cannabis despite the OCM’s directive 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 James, the attorney general. “Today, George West must pay $9.5 million for breaking our rules and harming local communities. Cannabis stores must follow the same rules and regulations as any other New York business.
Everyone who cultivates, produces, or sells cannabis products is required by New York’s Cannabis Law to register and obtain a license from the New York State Cannabis Control Board. The law mandates 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 discontinue operations from the OCM. Depending on the volume of unlicensed sales, the law may apply additional revenue-based civil fines. West received a $9.5 million judgment for unlicensed activity, which included disgorgement, administrative fines, daily penalties, and revenue-based penalties.
George West ran a cannabis store on Main Street in Canandaigua and sold cannabis without a license since at least September 2022. On June 28, 2023, OCM performed an administrative examination of Jaydega 7.0, which revealed West was selling cannabis without a license and seized more than 200 pounds of cannabis and cannabis products. Following the inspection, OCM issued a notice and order to cease activities, as well as a request that West give an accounting and complete financial disclosure for his operations at Jaydega 7.0. Although West refused to share this information, OCM received financial records indicating that West generated roughly $2.4 million in sales revenue between June 2022 and October 2023. West continued to sell cannabis without a license until OCM and OAG received court judgments requiring the closure of the Jaydega 7.0 location in November 2023.
Unregistered enterprises offer cannabis products that OCM facilities have not lab examined, deem potentially dangerous, and do not tax. The OCM authorizes the OAG to initiate legal proceedings against violators of the Cannabis Law.
Attorney General James has consistently held all of those who violate New York’s Cannabis Law responsible. In May 2024, Attorney General James obtained a $15.2 million judgment against the owner of seven unauthorized cannabis stores in upstate New York. In December 2023, Attorney General James, Governor Hochul, and OCM closed Big Chief Smoke Shop, a cannabis retailer in Bay Ridge, Brooklyn, for operating without a license.
Assistant Attorneys General Soo-young Chang and Joel J. Terragnoli handled this case under the supervision of Assistant Attorney General Christopher Boyd, who is in charge of the Buffalo Regional Office. Deputy Attorney General Michael Russo, Chief Deputy Attorney General Jill Faber, and First Deputy Attorney General Jennifer Levy lead the Division of Regional Affairs, which includes the Buffalo Regional Office.