CRB Monitor News
No Result
View All Result
  • Login
  • Register
  • Licensing
  • Regulation
  • Markets
  • Securities
  • Research
SUBSCRIBE
  • Licensing
  • Regulation
  • Markets
  • Securities
  • Research
No Result
View All Result
CRB Monitor News
No Result
View All Result

NYC Sheriff Short on Illicit Shop Enforcement Details

City council committee grills Sheriff Miranda over a lack of reporting

Zack Huffman by Zack Huffman
9 months ago
Reading Time: 4 mins read
0
Home Regulation

New York City Sheriff Anthony Miranda told a city council oversight committee that he was unwilling to release a list of all of the thousand-plus illicit cannabis shops his deputies have sealed up as part of Operation Padlock to Protect.

New York City Mayor Eric Adams celebrated the city’s crackdown on illegal pot shops, when he publicly destroyed what he estimated was about $63 million of seized illicit cannabis. During the late August event, Adams touted that more than 1,000 shops had been sealed, but further details of the crackdown have been difficult to obtain.

A spokesperson for Adams said that the city had sealed 1,108 stores, but the only other information they provided was a breakdown of the number of closed shops for each burrough. Brooklyn saw the most closures at 321, followed by 285 in Manhattan, 233 in Queens, 224 in The Bronx and 45 on Staten Island. 

RELATED POSTS

Market Saturation May Narrow NY Retail Pipeline

Cannabis Inversion Is a Problem Not Just in NY

NY Provisional Licensees Get 6-Month Extension

Meanwhile, the Office of Cannabis Management provided a list of 345 illicit shops that the agency had shut down throughout the state, with dates, business names and addresses included.

Sheriff Miranda shared some details when he testified Sept. 17 before the New York City Council’s Committee on Oversight and Investigation during a hearing chaired by City Councilor Gale Brewer. He argued that releasing a detailed list of closed store fronts could improperly malign those businesses even if they were found innocent. 

Report: 16% of violations dismissed, 3% of fines collected

Ahead of the city council hearing, Brewer’s office produced a 44-page report on Operation Padlock.

The report noted that there had been 1,178 violations cited by the sheriff’s department. Of those, 516 were affirmed by the Office of Administrative and Trial Hearings (OATH), 287 were default judgments where the defendant did not show up to the hearing, and 188 were dismissed. The remaining 187 violations still have their hearings pending.

CRB Monitor CRB Monitor CRB Monitor

Miranda said his office had conducted 5,059 inspections since the operation began, involving teams of five to seven deputies.

The report showed that there were still an estimated 2,600 illicit shops operating in New York City. That number was about 2,800 four months ago when the emergency rule went into effect, allowing for the start of Operation Padlock. The report said an average 90 stores per week have been closed since May. At that pace, the city will be sealing stores until July 2025.

Brewer also criticized the sheriff’s office for having collected only about 3% of all of the fines that have been levied by his office since Operation Padlock began. About $10.9 million in fines have been assessed for illegally selling cannabis, according to Brewer, who used data from OATH. Of those assessed fines, $2.8 million came from default judgments. According to OATH, businesses found in default are fined $10,000 per summons. Only $210,000 of all penalties have been collected.

Miranda explained that defendants would have to exhaust their legal options before he could collect any fines.

“Our primary concern is to shut these businesses down and not to generate revenue,” he said. “It is very difficult to collect from often untraceable LLCs that are no longer in business.”

Sheriff’s raids, staffing criticized

The sheriff’s department staffing level is currently close to 60%, but Miranda said he hopes to make up most of that gap with a new class of about 90 deputies in October.

Ingrid Simonovic, president of the New York City Deputy Sheriff’s Association, argued that the sheriff was overworking his staff while doing little to cut down on the business of illicit cannabis in the city.

“The sheriff’s portrayal of shutting down cannabis shops is also misleading,” she said. “Many stores are reopening after they are shut down.”

Simonovic argued that the sheriff’s department was prioritizing enforcement actions against illicit pot shops at the detriment of enforcing protective orders for domestic violence allegations. At the same time, Ingrid argued that the sheriff was failing to properly staff up his department. Specifically, Ingrid claimed the sheriff’s department failed to properly staff the effort to vet applications from prospective deputies through background checks.

“The only way that I could see us having an academy in October is if we don’t do the due diligence,” she said.

Miranda was unable to say how many of the sealed shops have since reopened or relocated. He also noted there was little he could do if a cannabis-selling business moves out of the shop and onto the street corner or into roving vans that operate similarly to food trucks.

“When it comes to street sales, then it falls to the NYPD. It does not fall on the task force,” said Miranda.

At the same time, shopkeepers have started pushing back against the raids and seizures with legal action of their own.

Attorney Lance Lazzaro, who has represented multiple stores that were sealed by the sheriff’s department, argued that the statute gives too much discretion to the sheriff to shut down stores.

He cited one client who was caught with just three pre-rolls in his shop and had his store shut down, and now they have to wait to see if the sheriff will allow the shop to reopen, despite the results of the hearing.

“A store could be selling 99.8% of product that is legitimate and they get caught with three marijuana pre-rolls, and yet the sheriff is sealing that place down for at least five days,” he said. “The summons was dismissed, the hearing officer found no illicit activity. We now have to wait for Sheriff Miranda about whether or not he will uphold that decision.”

Nadia Kahnauth, another attorney who has represented shop owners, stated that the sheriff’s department is not properly accounting for seized cash during their raids. She also noted that simply shutting the storefronts is not effectively curbing illicit sales.

“The closure of the stores, is it accomplishing what we want to do, or is it just driving cannabis to the streets?” she asked. “If the market supported four or five shops in one street, where did that consumer appetite go? It didn’t go away.”

Keep up with all the news impacting the regulated cannabis market with the CRB Monitor weekly news digest. Subscribe now.
Tags: New York
Share1Tweet4
Zack Huffman

Zack Huffman

Zack cut his journalistic teeth covering high school sports in the south before spending a decade covering local government, politics and the courts in the Boston, Massachusetts area. He’s previously written for Vice, WIRED, Mental Floss, GrownIn, the Boston Institute for Nonprofit Journalism, Talking Joints Memo, and DigBoston.

Related Posts

Commerce Clause Bid to Block Maryland Licensing Lottery Fails
Litigation

Federal Court Shuts Down Covid-Era Tax Credit for Cannabis

4 days ago
Cannabis market
Markets

A Possible Crypto Solution for Cannabis Sales

3 weeks ago
2023 Cannabis Market Report – Year in Review
Regulation

Illinois Searching for Bank Services

4 weeks ago
Questions Remain About Trulieve’s Supposed $113M Tax Win
Legislation

Maryland Approves Cannabis Business Employee Ownership

1 month ago
Next Post
Shannon O'Brien

Could Stability Come for Massachusetts Regulators?

CRB Monitor Cannabis-Linked Securities Update | August 2024

CRB Monitor Cannabis-Linked Securities Update | August 2024

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe to Download

Read CRB Monitor’s Seminal Analysis of Cannabis Business Risk

Download

Popular Post

Auto Draft

CRB Monitor Securities Update | May 2025

by James Francis
June 23, 2025
0

Ten years ago, it would have been nearly impossible to envision where the cannabis industry would have evolved to or...

Commerce Clause Bid to Block Maryland Licensing Lottery Fails

Federal Court Shuts Down Covid-Era Tax Credit for Cannabis

by Zack Huffman
June 19, 2025
0

In yet another example of Covid-era benefits not applying to cannabis companies, a federal court in Washington ruled the Employee...

CRB Monitor News

Minnesota Lottery Chooses 249 Prospective Operators

by Zack Huffman
June 11, 2025
0

Minnesota selected 249 prospective adult-use cannabis license winners during its first license lottery on June 5, despite what any email...

Cannabis market

A Possible Crypto Solution for Cannabis Sales

by Zack Huffman
June 5, 2025
0

PDX, a cryptocurrency processor company, is banking on more cannabis consumers and retailers turning toward crypto to get around e-payment...

Recent News post

Auto Draft

CRB Monitor Securities Update | May 2025

June 23, 2025
Commerce Clause Bid to Block Maryland Licensing Lottery Fails

Federal Court Shuts Down Covid-Era Tax Credit for Cannabis

June 19, 2025
CRB Monitor News

Minnesota Lottery Chooses 249 Prospective Operators

June 11, 2025
CRB Monitor

Cannabis Corporate Intelligence

  • About us
  • Editorial
  • Home
  • My account
  • Privacy Policy
  • Subscription
  • Legislation
  • Licensing
  • Litigation
  • Markets
  • Premium
  • Regulation
  • Research
  • Securities
  • Resources
  • Leadership

© 2023-2025 Enhanced Compliance Solutions Inc.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • About us
  • Account
  • Cart
  • Checkout
    • Confirmation
    • Order History
    • Receipt
    • Transaction Failed
  • Checkout
  • Editorial
  • Home
  • Login
  • My account
  • Newsletter
  • Privacy Policy
  • Subscribe data
  • Subscribe to our weekly licensing news digest
  • Subscription
    • Register to receive full access

© 2023-2025 Enhanced Compliance Solutions Inc.

×