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:
