New York prosecutor begins crackdown on illegal cannabis shops with US$400K deal with shop owner

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New York prosecutor begins crackdown on illegal cannabis shops with US$400K deal with shop owner
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A New York City entrepreneur who illegally sold marijuana at a dozen shops across Manhattan must pay more than US$400,000 in taxes and proceeds from illicit sales of cannabis, as part of a crackdown on the thousands of unlicensed operations across the city.

The Manhattan District Attorney's Office announced Tuesday that business owner Rami Alzandani would not face litigation as part of a non-prosecution agreement. He can keep his stores open but can no longer sell cannabis products.

Azandani must pay US$103,000 in restitution to the state Department of Tax and Finance and must also forfeit an additional $300,000 in illegal proceeds, the district attorney's office said. Since New York legalized recreational marijuana two years ago, relatively few of the stores that have received licences to operate have opened, allowing illicit shops to continue to prosper.

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