
New York City and the Manhattan District Attorney's Office are moving aggressively to crack down on illegal smoke shops selling cannabis without a license, Crain’s New York Business reported.
In a joint news conference, Mayor Eric Adams and DA Alvin Bragg announced two actions: The city commenced lawsuits against four East Village shops accused of selling marijuana to undercover officers and implicating their respective landlords as defendants, while Bragg sent letters to 400 suspected illicit stores, threatening to force their landlords to evict them.
The coordinated efforts come as state licensees begin to operate their legal cannabis businesses. In the meantime, hundreds of unlicensed pot purveyors have operated openly. The city has raided some of them, but not all, Crain’s reported.
The city is demanding financial penalties from both the landlords and store owners, relying on its law against public nuisances. The DA’s office will determine in the coming weeks whether there is enough evidence to start eviction proceedings against any of the hundreds of shops suspected of illicit sales. Prosecutors have authority under state law to require landlords to evict the shops, but authorities will start their own proceedings if the landlord fails to act, Bragg’s office told Crain’s.
“My hope is to not have to bring a matter,” Bragg said. “Hopefully the commercial landlords will understand that they’ve been put on notice.”
Jeff Schultz, an attorney at Feuerstein Kulick who represents licensed cannabis operators, told Crain’s that he called for authorities to focus on landlords. He said that there would be precedent for such prosecutions, citing a Los Angeles law that holds landlords liable for illegal marijuana businesses.