The cannabis industry is facing a wave of regulatory enforcement actions across the United States, with authorities taking swift action to shut down unlicensed businesses and ensure compliance with state regulations. Recent cases in New Mexico, California, New York, and the District of Columbia demonstrate the serious consequences faced by operators that operate outside of the legal framework.
New Mexico: Weed World’s License in Jeopardy
Weed World, owned by Herbert Arnold Duke, is teetering on the brink of losing its license after being cited by the New Mexico Cannabis Control Division (CCD) for nine violations, including operating without a valid license, failing to maintain proper records, improper labeling, and a lack of employee training. The CCD alleges that Weed World operated at an unapproved location and continued business activities despite an expired license due to unpaid taxes. Weed World has until January 15, 2025, to request a hearing or face potential license revocation, suspension, or fines.
California: All In Alliance Forced to Destroy Product
All In Alliance Inc. has been ordered by the California Department of Cannabis Control (DCC) to destroy over 700 pounds of cannabis and 49 plants following a Condemnation Action. The company will also pay $7,000 in costs and has 15 days from December 27, 2024, to destroy the cannabis under DCC supervision.
New York: Four Businesses Face Penalties for Unlicensed Activity
Jamaica, NY – The New York Cannabis Control Board upheld a decision to seal the premises of Cross Bay Snacks Inc. for one year due to the unlicensed sale of cannabis. The company’s appeal, citing improper service and insufficient evidence, was rejected.
New York City, NY – In a similar case, World of Exotic, Inc. also faced a year-long sealing order for operating without a license and selling unregulated cannabis products. The company’s appeal, focused on alleged service deficiencies, was also dismissed by the Board.
New York City, NY – 360 Garden Delight Inc., owned by Omar Hidais, was also issued a sealing order after a regulatory inspection revealed unlicensed cannabis activity. The company challenged the order, arguing insufficient service and claiming the unlicensed activity was a minimal part of their business. However, the Cannabis Control Board upheld the sealing order, emphasizing the importance of compliance with Cannabis Law and the need to protect public health and safety.
Ithaca, NY – The Rezz was fined $10,000 for operating without a license and selling cannabis illegally. The owner, Yusuf Broaster, claimed ignorance of the law, but the ALJ upheld the violation and penalty. The Rezz appealed, arguing that the decision was untimely and that the penalty was arbitrary and capricious, but the Cannabis Control Board affirmed the ALJ’s decision.
These New York cases underscore the authority of the Office of Cannabis Management (OCM) to conduct inspections and take decisive action against illegal cannabis activity, including imposing significant financial penalties.
District of Columbia: ABCA and MPD Continue Crackdown on Illegal Cannabis Operations
Washington, DC – The Alcoholic Beverage and Cannabis Administration (ABCA), in partnership with the Metropolitan Police Department (MPD), continues its crackdown on illegal cannabis businesses in the District.
December 17, 2024: ABCA and MPD padlocked Nomad Smoke Shop and Promoco DC for operating as unlicensed cannabis retailers. At Nomad Smoke Shop, authorities recovered a significant amount of cannabis, cocaine, methamphetamine, and psilocybin mushrooms, along with a firearm. One individual was arrested and charged with possession with intent to distribute and unregistered firearm.
December 23, 2024: ABCA and MPD shuttered All the Buzz DC, seizing over 26 lbs of marijuana, THC edibles, vape cartridges, and psilocybin edibles.
These closures bring the total number of illegal cannabis businesses padlocked in DC to seventeen since July 15, 2024, when the ABCA gained new enforcement powers. The ABCA has also issued numerous Cease and Desist Orders and written warnings to unlicensed operators.
A Nationwide Trend of Enforcement
These cases illustrate a growing trend of intensified enforcement across the cannabis industry. Regulators are making it clear that non-compliance will have severe repercussions. As the industry matures, businesses must prioritize strict adherence to state and local regulations to avoid license revocation, product destruction, fines, and other penalties.
