Central NY weed shops owner fined $15.2 million by state after ignoring orders to stop sales

Editor’s note: Article updated with comments from the owner of the shops, David Tulley.

Syracuse, N.Y. — A Central New York weed shop owner was fined $15.2 million by the state Attorney General after state officials say he ignored multiple orders to stop operation, officials announced Thursday.

David Tulley was ordered to close seven illegal cannabis dispensaries on July 31, 2023 after it was found he was operating without a license, according to officials from the AG’s office. His stores, called “I’m Stuck” and “Weed Warehouse” were in Oswego, Cayuga and Wayne counties, officials said.

The stores in Auburn, Lyons, Macedon, Ontario, Williamson and Pulaski were also selling to underage customers, officials said.

Despite orders to close, eviction notices from landlords and the doors being padlocked, Tulley ignored the state’s demands and continued to operate, officials said. This led to the AG’s office fining him, officials said.

The $15 million comes from $7 million in illegal profits he made and $8.2 million in penalties from operating without a license, officials said.

The law imposes a $10,000 penalty for each day in which an individual sells cannabis without a license, and a $20,000 penalty for each day an individual continues to sell cannabis after receiving an order to cease operating from the state Office of Cannabis Management.

Tulley was fined $10,000 per day for selling cannabis without a license, totaling $3.89 million, officials said. He was also fined $20,000 per day for continuing to sell cannabis after receiving an order to cease, totaling $4.34 million, officials said.

Tulley is also banned from the cannabis industry for life, officials said.

Tulley on Thursday denied selling cannabis after receiving notices from the AG’s Office. After the first notices, he said he turned his stores into consulting firms that offered cannabis samples to customers.

After additional notices were issued, he said he stopped offering samples and consultations altogether, switching instead to selling glass pieces only.

Tulley said he has no way of paying the fine. He said he made about $300,000 to $400,000 in profits from his shops.

Tulley said his lawyer is planning to appeal the fine.

He also said he plans on running for governor to amend the state’s cannabis licensing and to pardon his fine.

Part of the investigation into Tulley’s businesses was conducted by undercover agents, officials said.

A previous investigation focused on a chain promotion: an Easter egg hunt.

In April 2023, I’m Stuck stores advertised an Easter egg hunt in Onondaga, Cayuga, Monroe, Wayne and Yates counties, officials said. Collected eggs could be redeemed for prizes, including cannabis products and toys, they said.

An AG office investigator brought numerous eggs to a store in Macedon and redeemed cannabis flower and seeds, edibles and other products, officials said.

Other undercover agents under age 21 were sold cannabis products, officials said.

In July 2023, Joseph Bondy, Tulley’s lawyer, said they believe the state violated its own cannabis law in pursuing the closures.

“We will defend against the efforts to further enjoin Mr. Tulley on a number of specific statutory and constitutional grounds, which will be made by public court filing,” Bondy said.

The closed stores were:

• 18-20 Canal Street, Lyons (Wayne County)
• 2020 Crane Brook, Auburn (Cayuga County)
• 1944 State Route 104, Ontario (Wayne County)
• 4081 Ridge Road, Williamson (Wayne County)
• 9 East Genesee Street, Auburn (Cayuga County)
• 1146 Route 31, Macedon (Wayne County)
• 4865 Jefferson Street, Pulaski (Oswego County)

Staff writer Rylee Kirk covers breaking news, crime and public safety. Have a tip, story idea, photo, question or comment? Reach her at 315-396-5961, on Twitter @kirk_rylee, or rkirk@syracuse.com.