A New York City business owner has been ordered to pay over $400,000 in taxes and illicit profits after operating a dozen unlicensed marijuana dispensaries throughout Manhattan. As part of a citywide crackdown on illegal cannabis operations, entrepreneur Rami Alzandani reached a non-prosecution agreement with the Manhattan District Attorney's Office. While he avoids criminal charges and can keep his stores open, Alzandani is now prohibited from selling cannabis products.

The agreement requires Alzandani to pay $103,000 in back taxes to the New York State Department of Tax and Finance and forfeit an additional $300,000 in earnings from illegal sales. This action comes as New York State continues to license and regulate cannabis businesses, having issued over 250 licenses for legal cannabis sales, including edibles, flower, and vapes.

The proliferation of unlicensed cannabis retailers has become a significant issue in New York. Last month, Governor Kathy Hochul announced the seizure of $11 million worth of illegal cannabis products from 33 unlicensed stores across the state. This ongoing challenge stems from the slow rollout of licensed cannabis businesses since recreational marijuana was legalized two years ago, creating a void that unlicensed operators have filled. Manhattan District Attorney Alvin Bragg emphasized the public safety concerns related to unregulated cannabis sales, highlighting the lack of proper inspection for products sold in these unlicensed shops. The DA's office confirmed ongoing investigations into other illegal cannabis operations and stated they are working with landlords to evict businesses operating outside the law.