Attorney General James Secures $15.2 Million Judgment Against Unlicensed Cannabis Store Owner in Upstate New York

NEW YORK – New York Attorney General Letitia James today secured a $15.2 million judgment in disgorgement and penalties against the owner of seven unlicensed cannabis dispensaries in Cayuga, Oswego, and Wayne counties for operating these stories without a license and for illegally selling cannabis to underage customers. David Tulley, the owner of the unlicensed dispensary chain called “I’m Stuck” and “Weed Warehouse,” ignored repeated notices and orders from the Office of Cannabis Management (OCM) to stop operating. Attorney General James, Governor Hochul, and OCM shut down Tulley’s unlicensed cannabis stores in July and secured eviction notices from the landlords where Tulley’s stores were located. The judgment secured today requires Tulley to pay $7 million in disgorgement, the illegal profits he got from selling cannabis without a license, and $8.2 million in penalties for operating without a license and ignoring OCM notices.

“David Tulley illegally sold cannabis in multiple stores across upstate and central New York and sold unregulated products to underage customers,” said Attorney General James. “These illegal and unlicensed stores are budding up throughout the state and are hurting our communities. Today, David Tulley is paying the $15 million price for his repeated illegal activity and will be permanently banned from the cannabis industry in New York. This punishment should serve as a clear warning for all unlicensed cannabis stores in the state: we will enforce the law and shut down your operations.”

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 in which 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. Tulley was fined $10,000 per day for selling cannabis without a license, totaling $3.89 million. He was also fined $20,000 per day for continuing to sell cannabis after receiving an order to cease from OCM, totaling $4.34 million. Tulley was ordered to pay $7.01 million in disgorgement for the illegal profits he made from the seven unlicensed cannabis stores. In total, Tulley is required to pay $15.2 million in disgorgement and penalties.

David Tulley operated retail cannabis stores in Cayuga, Oswego, and Wayne counties and was selling cannabis without a license since at least early 2022, before OCM began issuing licenses. Tulley’s stores that were fined were located at:

1. 18-20 Canal Street, Lyons, NY
2. 2020 Crane Brook, Auburn, NY
3. 1944 State Route 104, Ontario, NY
4. 4081 Ridge Road, Williamson, NY
5. 9 East Genesee Street, Auburn, NY
6. 1146 Route 31, Macedon, NY
7. 4865 Jefferson Street, Pulaski, NY

Undercover investigators from the Office of the Attorney General (OAG) visited multiple “I’m Stuck” locations owned by Tulley and were able to purchase cannabis products. During the undercover operations, OAG investigators observed that multiple “I’m Stuck” stores sold cannabis to individuals under the age of 21.

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.

In December, Attorney General James, Governor Hochul, and OCM shut down a cannabis store in Bay Ridge, Brooklyn, Big Chief Smoke Shop, for operating without a license. In November, Attorney General James, OCM, and DTF shut down an unlicensed cannabis store in Ontario County.

This matter was handled by Assistant Attorneys General Benjamin Bruce, Christopher Boyd, Kurtis Falcone, Judith Malkin, George Forbes, and Amaris Elliott-Engel of the Division of Regional Affairs with support from Investigators Andrea Buttenschon, Andrea Hughes, Jeffrey Jasewicz, Jennifer Terranova, Michelle Ortiz, and Jessica Holland and data analytics was handled by Senior Consumer Frauds Representative Emily Brightman. The Division of Regional Affairs is led by Deputy Attorney General Jill Faber and overseen by First Deputy Attorney General Jennifer Levy.