ROCHESTER, N.Y. (WHAM) — A chain of unlicensed cannabis stores in New York is being investigated after being accused of selling to underage customers. The owner faces a fine of $15.2 million.

Several "I'm Stuck" cannabis shops are now closed, including one in Rochester -- which wasn't among the seven shut down by the state last summer.

Owner David Tulley is accused of illegal cannabis sales and skirting cannabis regulations in several Upstate New York counties in the Finger Lakes region.

The Office of Cannabis Management launched a lengthy investigation using the help of the New York State Attorney General's Office and local law enforcement agencies.

Tulley said he plans to appeal the fine.

It’s comical; it’s dumb," said Tulley. "No one has $15 million. What does it do for them? Other than let them go to every pot store and say, 'Oooh, if you don’t shut down you're going to be like Dave Tulley,'" he said.

Daniel Haughney, who is the director of enforcement for the Office of Cannabis Management, said the investigation began with law enforcement tips in 2022.

We started the process on our end by issuing cease and desist orders to Mr. Tulley which were not adhered to," said Haughney. "Subsequent to that, we did have changes to the law made, which allowed us to conduct regulatory inspections against these locations. Once we had that new authority, we conducted regulatory inspections at all of his locations and found them to be operating illegally as unlicensed cannabis dispensaries."

Haughney said the Office of Cannabis Management issued notices of violation, as well as cease orders. But, he added, Tully continued to operate in defiance of the orders.

After seeing there was nothing from his side indicating that he would comply with those orders, we enlisted the assistance of the New York State Attorney General’s Office and brought actions in Wayne County Supreme Court," Haughney said. "Subsequent to that, we were able to get closure orders from the court -- restraining orders stopping Mr. Tulley from conducting illegal cannabis sales."

The New York State Attorney General's Office conducted an investigation that involved undercover buys and said its investigation found Tulley's businesses were selling to minors. Tulley denies that claim.

"We have never, ever, ever -- not any one of us, ever -- sold to minors," Tulley said. "That has not ever happened."

As per the judgment, Tulley faces a fine of more than $15.2 million, which includes $10,000 per day for selling cannabis without a license, $20,000 per day for continuing unlicensed sales after receiving a Notice of Violation, a $5,000 penalty for removing the notice of violation from his Lyons location, and costs incurred by the AG's office in this case, totaling $1,324.98.

“This significant fine sends a clear message to illicit operators that the state will vigorously enforce cannabis regulations to ensure the safety and integrity of the industry,” said Haughney.

Tulley said he is baffled.

"Why didn’t they hand out these fines when people were selling pot on the street corner?" said Tulley. "It’s more of a crime now when it’s legal? It’s dumb. They’re dumb."

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