New York regulators of cannabis are trying to remove a licensed adult-use operator who they accuse of “aiding” and “abetting”, in illegal processing activities through a reverse license scheme.
Omnium Health Inc. d/b/a Omnium Canna, an adult-use distributor and processor licensed in Long Island by the Office of Cannabis Management of New York State (OCM), has been charged multiple times.
OCM asserts that an OCM investigation in February 2025 uncovered agreements between Omnium with unlicensed operators who Omnium charged rent for, and allowed them to use Omnium’s facilities and resources to produce and package cannabis product that ended up on licensed dispensary shelfs as part a “rent a license” program.
Felicia A. Reid, OCM’s Executive Deputy Director said in an Oct. 20th statement: “Omnium’s conduct is a clear violation of the licensing regulations designed to promote transparency and fairness on the legal market.” B. Reid stated in a 20 Oct. Press Release. “Our cannabis laws in our state are very clear. Licenses cannot be transferred and only licensed producers and distributors can produce cannabis. OCM’s action today makes sure that businesses are not exploiting loopholes to take advantage or undermine those who play by rules.
OCM files a notice to plead in order to remove Omnium’s licenses, and prohibit the company’s future applications for licensure.
The regulators of the state are seeking civil penalties based on the revenue projected from any sale or possession, of cannabis products that have not been regulated. They also want to recall and destroy these products.
Stephen Geskey said, “Omnium violated the core principles of New York’s regulatory framework by allowing unvetted individuals to enter New York’s legal marketplace.” Geskey was OCM’s vice-executive director of compliance, labs and licensing. This is an example of reverse licensing, which OCM won’t tolerate.
New York has a high risk of reverse licensing in the adult-use marijuana market. This is due to its delay in installing a tracking system from seed-to sale by a third party, nearly three years after sales in adult-use dispensaries began in December 2022.
OCM Plans to Integrate All licensees will be able to access the software and technology of track-andtrace provider Metrc by December 17th. Operators can begin their transition by gaining access to Metrc’s API and testing endpoints on October 12.
Most state programs use a third party provider like Metrc, BioTrack or BioTrack to prevent diversion and inversion. Former New York Cannabis Control Board member Jennifer Gilbert-Jenkins referred to product inversion as the “state’s” problem without a system.Dirty secret” at a board meeting in December 2024.
How do we verify that products sold in the stores actually come from New York State? she questioned. She asked. Dirty secret that everybody is talking about … that the amount of product that’s coming into our legal, authorized dispensaries from out of state is displacing New York product.”
The OCM will be in February 2025. launched The Trade Practices Bureau will investigate violations, non-compliance and abuse to ensure the integrity of cannabis program in the state.
The OCM, in its announcement this week, sought Omnium’s revocation, disbarment, and financial penalties. It also ordered an statewide recall of Omnium products. The OCM released a picture of the packaging for a product labeled as “Omnium D/b/a” in its Monday release. OCM’s investigators found that MFused rented Omnium premises and a license.
When covering OCM’s investigations, The New York Times reported that not only is Mfused connected to Omnium, but so too are popular brands Stiiizy and Grön. The article states that Grön continues to rent space in Omnium facilities and draws attention to another article that details Grön’s Business partnerships With licensees located in another state.
Grön, which has a Type 2 processing license in New York, called the NYT’s The article in the company’s statement is “inaccurate”. Cannabis Business Times:
We are disappointed and disheartened by the inaccurate reports made by the New York Times Today, an article misrepresents the relationships we have with our partners in New York State and their business practices. It also violates New York’s code of conduct. The article, about challenges facing a former partner of ours in New York State, suggests that Grön – a company with an unparalleled reputation in the cannabis industry for transparency and compliance, which are core values of our business – participated in improper licensing and manufacturing in New York State. The article makes false claims about Gron, a company with a stellar reputation in the cannabis industry for transparency and compliance. These are core values of our business. New York Times “Please review the matter immediately and make a corrective action.”
An edibles brand from Oregon, Grön contests that it operates in a building completely independent of Omnium under full compliance with the OCM.
“Our relationship with Omnium was short, and during that time, Grön operated in total compliance with OCM’s regulations, which expressly permit out-of-state brands to partner with existing New York processing licensees, proving there is zero merit to any story of questionable material being used,” according to the company statement.
OCM reports that in February, its newly-established Trade Practices Bureau, (TPB), examined Omnium’s auditing and inspection records. It also reviewed contracts between Omnium and other companies and interviewed several witnesses.
The OCM accused Omnium in its Monday notice of plea of misrepresentation of material facts and failure to disclose significant changes to the business.
James Rogers, Director of the TPB said that reverse licensing had no place on New York’s marketplace. This kind of cheating strips compliant business of the right to compete on a fair marketplace. The bureau was created by Acting Director Reid to combat these threats. TPB thanks all those individuals who provided crucial information. They encourage others to do so. “If we all work together, New York’s marijuana market can remain legal.”
New York’s cannabis regulators have tried to kick out a licensed operator of the adult use market, accusing him or her of “aiding and abet[ing]” unlicensed processing through reverse licensing.
Omnium Health Inc. d/b/a Omnium Canna, an adult-use distributor and processor licensed in Long Island by the Office of Cannabis Management of New York State (OCM), has been charged multiple times.
OCM says that an investigation conducted in February 2025 revealed contracts between Omnium, which charged unlicensed operators rent to allow them to make and package marijuana products for licensed dispensaries as part of the “rent-a license” scheme.
Felicia A. Reid, OCM’s Executive Deputy Director said in an Oct. 20th statement: “Omnium’s conduct is a clear violation of the licensing regulations designed to promote transparency and fairness on the legal market.” B. Reid in an article published on October 20, Press Release. The cannabis laws of our state are crystal clear. Licences cannot be transferable, and only operators licensed to produce and distribute marijuana are allowed. OCM’s action today makes sure that businesses are not able to exploit loopholes, or use them as an opportunity to undercut legal operators.
OCM attempts to cancel Omnium’s licensing and stop the company from applying in future.
The regulators of the state are seeking civil penalties based on the revenue projected from any sale or possession, of cannabis products that have not been regulated. They also want to recall and destroy these products.
Stephen Geskey is the OCM’s deputy executive director for labs compliance and licensing. He said that Omnium violated our core regulatory principles and allowed unvetted operators to operate in New York. This is an example of reverse licensing, which OCM won’t tolerate.
New York has a high risk of reverse licensing in the adult-use marijuana market. This is due to its delay in installing a tracking system from seed to sale by a third party, nearly three years after sales in adult-use dispensaries began in December 2022.
OCM Plans to Integrate All licensees will be able to access the software and technology of track-andtrace provider Metrc by December 17th. On Oct. 12, operators will have access to Metrc’s Application Programming Interference (API), and test endpoints to start the transition.
Most state programs use a third party provider like Metrc, BioTrack or BioTrack to prevent diversion and inversion. Former New York Cannabis Control Board member Jennifer Gilbert-Jenkins referred to product inversion as the “state’s” problem without a system.Dirty secret” at a board meeting in December 2024.
How do we verify that products sold in the stores actually come from New York State? she questioned. She asked. Dirty secret that everybody is talking about … that the amount of product that’s coming into our legal, authorized dispensaries from out of state is displacing New York product.”
The OCM will be in February 2025. launched The Trade Practices Bureau will investigate violations, non-compliance and abuse to ensure the integrity of cannabis program in the state.
The OCM, in its announcement this week, sought Omnium’s revocation, disbarment, and financial penalties. It also ordered an statewide recall of Omnium products. The OCM released a picture of the packaging for a product labeled as “Omnium D/B/A MFused” in its Monday release. OCM’s investigators found that MFused rented Omnium premises and license.
When covering OCM’s investigations, The New York Times reported that not only is Mfused connected to Omnium, but so too are popular brands Stiiizy and Grön. The article states that Grön continues to rent space in Omnium facilities and draws attention to another article that details Grön’s Business partnerships With licensees located in another state.
Grön, which has a Type 2 processing license in New York, called the NYT’s The article in the company’s statement is “inaccurate”. Cannabis Business Times:
We are disappointed and disheartened by the inaccurate reports made by the New York Times Today, an article misrepresents the relationships we have with our partners in New York State and their business practices. It also violates New York’s code of conduct. The article, about challenges facing a former partner of ours in New York State, suggests that Grön – a company with an unparalleled reputation in the cannabis industry for transparency and compliance, which are core values of our business – participated in improper licensing and manufacturing in New York State. The article makes false claims about Gron, a company with a stellar reputation in the cannabis industry for transparency and compliance. These are core values of our business. New York Times “Please review the matter immediately and make a corrective action.”
An edibles brand from Oregon, Grön contests that it operates in a building completely independent of Omnium under full compliance with the OCM.
“Our relationship with Omnium was short, and during that time, Grön operated in total compliance with OCM’s regulations, which expressly permit out-of-state brands to partner with existing New York processing licensees, proving there is zero merit to any story of questionable material being used,” according to the company statement.
OCM reports that in February, its newly-established Trade Practices Bureau, (TPB), examined Omnium’s audit records and inspections, as well as contracts between Omnium and other businesses.
The OCM accused Omnium in its Monday notice of plea of misrepresenting material facts and of failing to reveal significant changes to the company’s business.
James Rogers, Director of the TPB said that reverse licensing had no place on New York’s marketplace. This kind of cheating strips compliant business of the right to compete on a fair marketplace. The bureau was created by Acting Director Reid to combat these threats. TPB thanks all those individuals who provided crucial information. They encourage others to do so. “If we all work together, New York’s marijuana market can remain legal.”
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