NEW YORK – New York Attorney General Letitia James secured a $6 million judgment against the owner of Big Chief Smoke Shop (Big Chief), an unlicensed cannabis store in Bay Ridge, Brooklyn. Big Chief sold cannabis for more than a year without a license and ignored repeated orders by the Office of Cannabis Management (OCM) and other law enforcement authorities to stop operating without a license. The Office of the Attorney General (OAG) and OCM obtained a judicial closing order that shut down Big Chief in December 2023. This judgment requires Big Chief’s owner to pay nearly $5.9 million in penalties for selling cannabis without a license and continuing to do so after being ordered by OCM to stop, $121,000 in disgorgement of illegal profits, and $44K in costs and attorney’s fees.
“Rules and regulations, especially over the cannabis industry, are designed to protect New York consumers and keep neighborhoods safe,” said Attorney General James. “Big Chief Smoke Shop ignored repeated warnings to stop operating without a license and instead they kept their doors open, putting New Yorkers at risk. My office secured a $6 million judgment against the owners of Big Chief Smoke Shop for brazenly violating the law and disrupting the local community. Hopefully this judgment will serve as a warning to anyone who thinks they can ignore our laws and endanger our communities.”
“New Yorkers need and expect a safe, regulated cannabis market where business owners play by the rules,” said Senator Andrew Gounardes. “By repeatedly refusing to do the right thing, Big Chief did an immense disservice to our community in Bay Ridge and to all the licensed retailers operating in New York. I’m grateful to Attorney General James for holding Big Chief accountable. Let this be a message to all other retailers trying to skirt the law: New York will shut you down.”
“Of all the unlicensed cannabis operators who worked to undermine the rollout of the legalized cannabis industry in New York, Big Chief was one of the worst bad actors I’ve seen,” said New York City Councilmember Justin Brannan. “Beyond endangering their customers and our community by selling untaxed, unregulated, and illegal products, they were bad neighbors who hosted illegal activity, frequently trashed the area outside their premises, and blatantly mocked and provoked residents, elected officials, and law enforcement in the press. People in Bay Ridge took notice – Big Chief was certainly not the only illegal cannabis store in our neighborhood, but they generated more complaints to my office, in the one-plus year they were open, than any other single legal or illegal establishment in my district since I took office in 2018. I am grateful to Attorney General James for making sure Big Chief must now pay for the price.”
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. The law imposes a penalty of up to $10,000 for each day 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. Additional revenue-based civil penalties may also be imposed based on the amount of the unlicensed sales. The $6 million judgment against Big Chief Smoke Shop resulted from a combination of disgorgement, administrative fines, daily penalties, and revenue-based penalties for Big Chief’s unlicensed activities.
Big Chief Smoke Shop had been selling cannabis without a license since at least November 2022. In August 2023, OCM and the New York State Department of Taxation and Finance (DTF) investigators conducted an inspection of Big Chief, confirmed Big Chief was selling cannabis without a license, and seized more than 400 pounds of cannabis and cannabis products. At the inspection, OCM served Big Chief with an order to stop operating without a license and posted the violation, cease order, and 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 2023, OCM investigators observed that the violation, cease order, and warning documents OCM posted on the front windows of Big Chief were removed or covered over and that the store was still actively selling cannabis without a license. During the inspection, investigators seized more than 200 pounds of illicit cannabis and issued another violation notice and order to stop operating. OAG and OCM obtained a court order mandating the closure of Big Chief in December 2023.
Cannabis products sold by unlicensed businesses are not lab tested by OCM-licensed facilities, can be unsafe to consume, 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, DTF, and the governor for their collaboration.
This is the latest judgment secured by Attorney General James against unlicensed cannabis stores in New York. In October 2024, Attorney General James and OCM secured a $9.5 million judgment against an unlicensed cannabis store owner in Ontario County. In May 2024, Attorney General James and OCM secured a $15.2 million judgment against the owner of seven unlicensed cannabis stores in upstate New York.
This matter was handled by Assistant Attorney General Deborah Diamant of the Brooklyn Regional Office, under the supervision of Assistant Attorney General in Charge Michael Barbosa with support from Investigators Crystal Combs and Crystal John. Assistant Attorney General Rudolph Baptiste of the Suffolk Regional Office also assisted with this matter. The Division of Regional Affairs is led by Chief Deputy Attorney General Jill Faber and overseen by First Deputy Attorney General Jennifer Levy.
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