End of Major Corruption Case Embarrasses N.Y. Cannabis Regulators
- New York's cannabis market faced turmoil after state regulators abruptly withdrew charges in a major corruption case against Omnium Health, leading to agency leadership changes.
- The Office of Cannabis Management’s head was removed and the official overseeing the investigation was fired following the sudden collapse of the case.
- An administrative law judge delayed dismissing the case to consider whether the state should retain the option to revisit the charges later, expressing skepticism about the agency’s intent.
- The incident highlights ongoing challenges in New York’s cannabis industry, including regulatory uncertainty, enforcement issues, and competition from the illicit market.
New York’s beleaguered cannabis market on Tuesday was grappling with the sudden collapse of a court case that had signaled an effort by state regulators to step up enforcement in the sector.
On Monday, regulators in the state’s Office of Cannabis Management, without much explanation, abruptly withdrew charges in the case, a major corruption investigation that had been months in the making. The move was followed by the removal of the head of the agency and the firing of the official in charge of the investigation.
However, on Tuesday, the administrative law judge handling the case held off on dismissing it, saying she needed to decide whether the state should have the option to revisit the matter down the road.
The confusion swirling around the case, against the Long-Island based company Omnium Health, was the latest setback for New York’s cannabis sector, which has endured officials’ broken promises, competition from a robust illicit market and uncertainty around regulations.
Now, as the charges against Omnium hang in limbo, one of the state’s most ambitious efforts to crack down on bad business practices in the cannabis sector appears to be backfiring and to have become another source of embarrassment.
During a virtual hearing on Tuesday, Laurie Cartwright, the judge hearing the Omnium case, did not take issue with the withdrawal of the charges. But Judge Cartwright, who works in the Office of Cannabis Management, held off on dismissing the matter, she said, because she was skeptical of the assertion by the agency’s regulators that they could refile the charges at a later date.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.