In a first-of-its-kind ruling, Wayne County Superior Court has ordered a Lyons man to pay $15.2 million in fines for operating an illegal marijuana business.
Supreme Court Justice Richard Healy on Thursday fined David Tully, 21, $7 million in total for “disgorgement,” or repayment of illegal profits he presumably made from his business, plus $8.2 million for ignoring repeated warnings from the state Office of Cannabis Control to shut down his business.
State Attorney General Letitia James filed the lawsuit in November on behalf of OCM.
“This significant fine sends a clear message to illegal operators that the state will strictly enforce cannabis regulations to ensure the safety and health of the industry,” said Daniel Horney, OCM's enforcement director. “Our robust action against illegal activity demonstrates our commitment to protecting consumers and maintaining a level playing field for legitimate businesses.”
Talley made no secret of his illegal marijuana operation. Nine stores have opened in Monroe, Wayne, Seneca, Oswego and Cayuga counties under brands such as I'm Stuck, Empire Express and Weed Warehouse, with the first stores opening in early 2022.
“We had to start now because if we didn't, our families and our children wouldn't have a chance,” Talley told the Auburn City Council in December 2022 as he prepared to open a new store in the city. “We now have seven stores across Central New York, and we started with just $1,000 in capital.”
“I didn't choose to be the number one pharmacy in New York,” Tully continued, “the people of New York chose me to be.”
After raids began on his business premises last summer, he gave on-camera media interviews, spoke at length on Facebook Live, organized smoke-filled rallies in his defense and allegedly called the OCM director to threaten him.
Tully did not immediately respond to a request for comment.
The latter action resulted in him being charged with second-degree aggravated harassment.
James said in a statement that Talley was being made an example of.
“Today, David Talley has paid a $15 million fine for repeated violations of the law and will be permanently banned from New York's cannabis industry,” James said. “This penalty should serve as a clear warning to all unlicensed cannabis dispensaries in the state: we will enforce the law and shut you down.”
