A Brooklyn judge has slapped unlicensed cannabis retailer Big Chief Smoke Shop with a $6 million penalty, ruling that the business flagrantly ignored state orders to shut down and continued selling cannabis illegally.

The judgment, handed down Tuesday, marks one of the largest fines levied against an unlicensed dispensary in New York’s rapidly evolving cannabis market.

Judge Comes Down Hard on Unlicensed Sales

New York Attorney General Letitia James announced the decision Wednesday, saying the penalty sends a strong warning to illicit operators attempting to bypass state regulations.

"Rules and regulations, especially over the cannabis industry, are designed to protect New York consumers and keep neighborhoods safe," James said. "Big Chief Smoke Shop ignored repeated warnings and instead chose to keep its doors open, putting New Yorkers at risk."

The judgment orders Big Chief to pay:

• $121,744 in disgorged profits
• $2.3 million, $1 million, and $2.4 million in civil penalties
• $44,000 to cover enforcement costs for the Office of Cannabis Management (OCM) and the Attorney General’s Office

Brazen Defiance of State Orders

Authorities say Big Chief’s illicit operations date back to at least November 2022. OCM investigators raided the shop in August 2023, confiscating more than 400 pounds of cannabis products and ordering the store to cease operations.

Yet, when officials returned in October, they found that the shop had ripped down cease-and-desist notices from its windows and resumed selling unlicensed cannabis. Another 200 pounds of illegal products were seized in that second raid.

State officials calculated the fines based on the shop’s Cash App sales history and other evidence, citing:

• $10,000 for each day Big Chief operated without a license
• $20,000 for each day it continued selling after receiving the cease order
• Five times the shop’s profits since May 3, 2023, when the governor signed legislation strengthening OCM enforcement powers

Officials Warn Illicit Dispensaries: Play by the Rules or Face Consequences

New York State Sen. Andrew Gounardes praised the ruling, saying legitimate dispensary owners shouldn’t have to compete with rogue operators.

"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," Gounardes said. "Let this be a message to all other retailers trying to skirt the law: New York will shut you down."

Legal Battle Looms

Big Chief Smoke Shop is represented by Lance Lazzaro of Lazzaro Law Firm PC. Meanwhile, the OCM is represented by Deborah Diamant and Michael Barbosa from the Attorney General’s Office.

Big Chief representatives could not be immediately reached for comment Thursday.

As the state continues to crack down on illicit dispensaries, legal experts say this ruling may set a precedent for future enforcement actions against unlicensed operators in New York’s multibillion-dollar cannabis industry.