Hundreds of illegal NYC pot shops have dodged millions of dollars in fines: council report

Hundreds of padlocked illegal cannabis shops in New York City have managed to evade paying fines for violating the law, according to a recent analysis by the City Council.

Since April, administrative judges have found 516 cases of violations against illegal marijuana shop owners, resulting in fines totaling $5.21 million. However, only $210,000 has been paid in penalties for 21 cases.

As a result, $4.98 million in fines remain unpaid for 495 violations, as reported by the city’s Sheriff’s Office and Department of Finance.

Councilwoman Gale Brewer, who chairs the investigations committee, expressed astonishment at the significant amount of unpaid fines.

Under Operation Padlock initiated by the Adams administration, the city Sheriff’s Office issued 1,178 violations against unlicensed cannabis operators, resulting in the closure of many shops. Of the violations that went through legal proceedings, 516 cases were substantiated, and fines totaling $2.85 million were imposed.

Additionally, landlords who do not take action against illicit cannabis stores they lease to could face fines of up to $50,000.

Despite the challenges in collecting fines, the mayor’s office remains committed to holding bad actors accountable and ensuring public safety and health.

The crackdown on illegal marijuana shops has significantly impacted the unlicensed market, with the closure of hundreds of shops, benefiting the legal cannabis market.

City Councilwoman Gale Brewer is set to hold a hearing to further evaluate the effectiveness of the city’s cannabis enforcement program and address any issues with the collection of fines.

Before the crackdown, Mayor Eric Adams and Sheriff Anthony Miranda estimated there were 2,200 unlicensed smoke shops in the city. Currently, there are 189 licensed cannabis dispensaries and delivery operations in New York State, with 79 located in the city.