Big Chief Smoke Shop in Bay Ridge Sold Unregulated Cannabis Products and Ignored Repeated Orders to Stop Operating without a License
Governor Hochul, AG James and OCM Have Shut Down Nine Unlicensed Cannabis Stores This Year
Governor Signed Legislation Granting the Office of Cannabis Management and the Attorney General New Powers to Take Enforcement Actions Against Unlicensed Cannabis Dispensaries in May 2023 as Part of FY24 Enacted Budget
Governor Kathy Hochul, New York Attorney General Letitia James, and the Office of Cannabis Management (OCM) today shut down a cannabis store in Bay Ridge, Brooklyn, Big Chief Smoke Shop, for operating without a license. Big Chief sold cannabis without a license and ignored repeated orders by OCM and other law enforcement authorities to stop operating. Investigators from OCM and the New York State Department of Taxation and Finance (DTF) inspected the store on two occasions and confiscated more than 600 pounds of cannabis and cannabis products that were not tested by OCM. In addition to shutting down the store, Attorney General James and OCM are seeking penalties from the store owner and the owner of the building where the store is located for allowing an unlawful business to operate on the property. The store’s owner could be fined millions of dollars in penalties as a result of today’s action. This is the ninth unlicensed cannabis store shut down by Governor Hochul, Attorney General James and OCM.
"We have no tolerance for illicit retailers who break the law and undermine our nation-leading adult-use cannabis industry," Governor Hochul said. "This site egregiously violated New York's cannabis laws and I'm proud to be working with the Attorney General to shut this down. With Brooklyn's first legal cannabis retailers opening this month and illegal shops continuing to close, we are turning the corner towards building a stronger, safer cannabis industry."
Attorney General Letitia James said, “Unlicensed cannabis stores selling unregulated products pose a health risk to New Yorkers and hurt the businesses that are following the rules. New Yorkers who buy and use cannabis shouldn’t have to worry about the quality and safety of the products they are purchasing, which is why all shops must be licensed and regulated. Cannabis businesses, just like any other industry in New York, must follow rules and regulations to safely operate and pay their fair share of taxes. Public health and safety are a top priority and Governor Hochul and I will continue to go after those who try to harm our communities.”
Chris Alexander, Executive Director of New York State’s Office of Cannabis Management, said “Enforcement teams from OCM and DTF have worked diligently to shut down illicit cannabis businesses in every corner of the state. They have now conducted hundreds of regulatory inspections resulting in the seizure of significant quantities of illicit cannabis. Thanks to action taken by the Governor, the Attorney General and the Legislature, we are able to pursue permanent closures for New York’s most egregious illicit operators. We have a lot of work to do but we will continue to protect what we are building and to ensure that revenue intended to rebuild communities isn’t lining the pockets of these operators who are selling untested and unsafe products that threaten the public health of New York’s cannabis consumers.”
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). Cannabis products sold by unlicensed businesses are not lab tested by OCM-licensed facilities, can be unsafe, are not taxed, and may not be in child-resistant packaging. The law authorizes the Office of the Attorney General (OAG), upon request by OCM, to bring a proceeding against any person who violates the Cannabis Law.
Big Chief Smoke Shop has been selling cannabis without a license since at least November 2022. In August 2023, OCM and DTF investigators inspected the store and found that the store was selling cannabis flower, concentrates, vapes, edibles, and pre-rolls without having a license to sell cannabis issued by OCM. The investigators confiscated approximately 161 pounds of cannabis flower, 137 pounds of cannabis-infused product, 108 pounds of concentrated cannabis, and 60 pounds of cannabis pre-rolls. OCM issued a Notice of Violation and Order to Cease Unlicensed Activity to the store’s owner for operating without a license and posted the Notice of Violation and Order to Cease Unlicensed Activity along with warning notices informing the public of the dangers of illicit cannabis on the front windows of the store. In a follow-up inspection in October, OCM investigators observed that the documents OCM posted on the front windows of the store were covered over and that the store was still actively selling cannabis. At the October inspection, investigators seized more than 200 pounds of illicit cannabis and issued another Notice of Violation and Order to Cease Unlicensed Activity. The total combined value of the seizures is more than $7.6 million.
Local community leaders have vocally opposed Big Chief Smoke Shop and the local community board passed a unanimous resolution to shut down unlicensed stores in their neighborhood.
Senator Andrew Gounardes said, “Big Chief has not only flouted New York's cannabis laws, but they have also been a perpetual bad neighbor. I'm relieved that they are finally facing serious state action and will face accountability. When the state legislature passed laws to strengthen enforcement, this is exactly what we had in mind. I want to thank Attorney General James and Governor Hochul for finally bringing this petition to close Big Chief and for staying committed to making sure that our legal, licensed shops are the only ones with products on the market.”
New York City Council Member Justin Brannan said, “While I have always supported the legalization and regulation of marijuana, the young legal industry in New York has been undermined by illegal stores opening everywhere and masquerading as legitimate dispensaries. These illegal pot shops have stolen tax revenue from the state, and they have stolen business from small, legal dispensary owners who follow the law and operate in good faith. If we care about a strong and safe legal marijuana industry in New York, then we must shut down the bad actors. Despite multiple raids and temporary closures, Big Chief has brazenly flouted both the law and an outrageous number of neighborhood complaints in operating their illegal shop. For the sake of our community, and the New York legal marijuana industry as a whole, today we are holding Big Chief accountable. I want to thank the Attorney General, the Governor, and their teams for working with us so closely to get this done once and for all — a big community victory.”
At the request of OCM, the Attorney General James filed a petition for emergency relief under Section 16-a of the Cannabis Law seeking to immediately shut down Big Chief Smoke Shop and stop the owner from distributing, delivering, dispensing, and selling cannabis products in New York. In addition, the petition seeks to require the store owner to pay penalties for violating New York’s Cannabis Law. The Cannabis Law imposes a penalty of up to $10,000 for each day in which an individual sells cannabis without a license, and a penalty of up to $20,000 for each day an individual continues to sell cannabis after receiving an order to cease operating from OCM.
In addition, the petition seeks civil penalties from the building owner where Big Chief Smoke Shop is located for permitting an unlawful business to operate within their property. The building owner was previously notified that an unlawful business was operating within their property and yet Big Chief Smoke Shop has continued to remain open for more than a year. Under the Cannabis Law, building owners can be fined a penalty of $10,000 per day for allowing the unlicensed sale of cannabis at their property.
Similar petitions filed by OCM and Attorney General James have led to court approvals to padlock the unlicensed cannabis stores targeted in those actions. On November 29, an order was obtained authorizing OCM to immediately padlock an unlicensed cannabis store in Ontario County, which was executed two days later. Previously, in July, a Supreme Court judge signed a padlocking order to immediately shut down seven unlicensed cannabis dispensaries in Cayuga, Oswego, and Wayne counties, which ultimately led to the permanent closure of those stores on November 21 and established an important precedent supporting the State’s authority to seek longer term closures of businesses found to be selling cannabis without license. An assessment of the total penalties in that case will be finalized in the coming weeks.
Investigators from OCM and DTF continue to conduct inspections across the State on a weekly basis. To date, over 350 inspections have been logged, yielding over 11,000 pounds of illicit cannabis worth over $54M. The Office of Cannabis Management releases updates on these actions as well as other enforcement-related news on the first Monday of each month. The latest is here.
Lastly, Brooklyn’s first licensed adult-use dispensary is scheduled to open tomorrow, Tuesday 19 December at 2370 Coney Island Avenue. Brooklyn was one of five enjoined regions where an injunction prevented the opening of any adult-use cannabis shops in a lawsuit that was settled earlier this year.