Background: unauthorized transactions and legal consequences
Tulley operated seven cannabis stores in Wayne, Cayuga and Oswego counties, without having the proper licenses.
Despite multiple cease and desist orders, the entrepreneur continued its activities, which resulted in inspections by the Office of Cannabis Management (OCM) and the Office of the Attorney General of the State of New York. These “raids” confirmed that the chain’s stores did not have the necessary authorizations and were therefore selling cannabis illegally.
The investigation into Tulley was triggered in 2022 by reports from law enforcement. Daniel Haughney, Director of Enforcement for the OCM, explains: “We initially issued cease and desist orders to Mr. Tulley, which were not complied with . Subsequently, legislative changes allowed us to conduct regulatory inspections, where we found that its establishments were operating illegally.
The Attorney General's Office's investigation, which included undercover cannabis purchases, revealed that Tulley's businesses were selling hemp to minors, an accusation that Tulley categorically denies it. “We have never, ever, ever sold to minors” he disputed.
A record fine in the fight against drug trafficking
The judgment, handed down by Acting Supreme Court Justice Rick Healy, requires Tulley to pay $7 million in “disgorgement”, illegal profits made from the sale of unlicensed cannabis , and $8.2 million in penalties for operating without a license and ignoring OCM notices.
Attorney General Letitia James said: “David Tulley illegally sold cannabis in multiple stores across northern and central New York and sold unregulated products to underage customers . Today, he is paying a $15 million price for his repeated illegal activity and will be permanently banned from New York's cannabis industry.
Despite the judgment which he describes as harsh, Tulley clearly remains confident. In a Facebook post, he called the situation a "political war" and announced his intention to run for governor.“I will round up all unauthorized stores in the 'State against them... We are electing racist officials who only want to grant licenses to certain people' he said.
