NEW CITY – An investigation into Rockland’s unlicensed smoke shops has netted four arrests and the seizure of $400,000 and 170 pounds of cannabis, authorities said Friday.
Authorities arrested the owner of five shops across Rockland and three of his employees on felony counts of criminal tax fraud.
Authorities raided various shops under the name Zava in Clarkstown, Orangetown, and Suffern, the Rockland District Attorney’s Office said Friday. The year-long investigation was done jointly with U.S. Department of Homeland Security Investigations, several New York state agencies, and local police.
The investigation marked the first major takedowns of unlicensed marijuana dispensaries in the Hudson Valley region, said Ivan J. Arvelo, the special agent in charge of Homeland Security Investigations in New York.
“Today’s charges highlight the increased prevalence of illegal, unregulated smoke shops being opened throughout our state,” he said.
Investigation started because of reported sales to minors
The investigation started in 2023 with reports of stores selling cannabis to minors, Rockland District Attorney Thomas Walsh said in a news release.
Investigators executed seven court-approved search warrants, hitting two smoke shops in Clarkstown, two in Orangetown, and one in Suffern, Walsh said. The investigation uncovered tax irregularities at the smoke shops, which were not licensed to sell cannabis by the state, he said.
“Make no mistake: while the use of marijuana has been legalized in New York, businesses must adhere to tax restrictions and requirements – a fact these four defendants allegedly blatantly ignored,” Arvelo said.
Arrested were:
- Ibrahim Alfalahi, 36, of Nanuet, on a count of third-degree criminal tax fraud and five counts of second-degree criminal tax fraud. He is listed by prosecutors as the owner of the stores.
- Abdo Alquhshi, 44, of Nyack, on third-degree criminal tax fraud.
- Sadek Alfalahi, 29, of Nanuet, on third-degree criminal tax fraud.
- Fateh Ahmed Alhajjaji, 36, of Nanuet, on third-degree criminal tax fraud.
Authorities also filed charges against the business, which could lead to fines in any disposition:
- Zava Lafayette Convenience Corp., 28 Lafayette Ave., Suffern, on second-degree criminal tax fraud.
- Zava Candy Inc., 214 Smith Road, Nanuet, on second-degree criminal tax fraud.
- Zava Flow Inc., 38-40 N. Middletown Road, Nanuet, has been charged with one count of criminal tax fraud in the second degree (C Felony).
- Zava Central Convenience Corp., 46 E. Central Ave., Pearl River, on second-degree criminal tax fraud,
- Zava Smoke, Inc., aka Zava Convenient Store Inc., Pearl River, on second-degree criminal tax fraud,
State fighting growth in illegal cannabis sales
New York legislators and then Gov. Andrew Cuomo legalized recreational cannabis use in 2021 for people older than 21. The drug had been decriminalized and approved for medical use.
The law allows New Yorkers to possess up to three ounces of cannabis for recreational use. People with certain marijuana-related convictions will have their records expunged. Stores selling the drug need to be licensed by the state.
Legalization was expected to create a billion-dollar industry and fill state coffers with tax dollars. But the state’s slow licensing of dispensaries has led to the proliferation of unlicensed sellers.
The state has begun cracking down on those sellers.
Gov. Kathy Hochul reported in May that since an enforcement task force was launched, the state had shut down 114 stores and seized over $29 million worth of illegal products. New York City Mayor Eric Adams said the city had closed close to 400 smoke shops and seized $13.3 million in illegal products.
In the Rockland investigation, prosecutors worked with Homeland Security Investigations, the state Department of Taxation and Finance, the state Office of Cannabis Management, New York State Police, plus Clarkstown, Orangetown and Suffern police.
“I commend the Tax Department’s Criminal Investigations Division for their work with the Rockland County District Attorney’s Office and the other agencies involved in shutting down these illegal smoke shops,” state Department of Taxation and Finance Acting Commissioner Amanda Hiller said. “We’ll continue to work with all our partners in law enforcement to uncover tax evasion and ensure that businesses are adhering to the law.”
Walsh said Executive Assistant District Attorney Michael Dugandzic and Assistant District Attorney Katherine Crispi are prosecuting the case.
Steve Lieberman covers government, breaking news, courts, police, and investigations. Reach him at slieberm@lohud.com Twitter: @lohudlegal
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