News Summary
The New York Office of Cannabis Management has formally charged Omnium Health Inc. for their involvement in a ‘reverse licensing’ scheme, which allowed unregulated cannabis products to be sold in licensed dispensaries. The OCM is seeking to revoke Omnium’s licenses and impose heavy fines. This action follows an investigation that uncovered connections between Omnium and illegal operators, emphasizing the need for stringent enforcement in the cannabis industry. The OCM is also implementing a tracking system to enhance compliance and prevent similar violations in the future.
New York – The New York Office of Cannabis Management (OCM) has filed multiple charges against Omnium Health Inc., doing business as Omnium Canna, on October 20, 2025. This action follows an investigation initiated in February 2025, which revealed that Omnium was involved in a “reverse licensing” scheme that allegedly facilitated the sale of unregulated cannabis products.
According to the findings, Omnium had entered into contracts with unlicensed operators, who were reportedly paying rent to utilize Omnium’s facilities and resources. This arrangement allowed these unlicensed businesses to manufacture and package cannabis products, which were then sold in licensed dispensaries, constituting what authorities described as a “rent-a-license” scheme.
The OCM is now seeking to revoke Omnium’s processor and distributor licenses. Additionally, they aim to prohibit the company from applying for future cannabis permits and impose civil penalties for the sale of these unregulated products. Furthermore, state regulators are requesting the recall and destruction of any unregulated products associated with Omnium.
OCM Executive Deputy Director Felicia A. B. Reid emphasized that the conduct of Omnium reflects a significant breach of licensing rules, which are aimed at ensuring market transparency and fairness within the cannabis industry. OCM Deputy Executive Director Stephen Geskey noted that Omnium’s actions directly contravene the core principles of the regulatory framework and permitted unvetted operators to infiltrate New York’s legal market.
Investigations have uncovered connections between Omnium and several brands, including Mfused, STIIIZY, and Grön. Allegations involve a process known as product inversion, where unlicensed marijuana from out-of-state sources is smuggled and sold within legal dispensaries, further complicating compliance efforts in the state’s cannabis market.
To reinforce enforcement in this area, OCM has established a Trade Practices Bureau specifically tasked with investigating violations and safeguarding the integrity of New York’s cannabis program. The OCM has made it clear that reverse licensing practices are strictly prohibited and they possess the necessary tools to enforce compliance across the cannabis market.
If Omnium chooses to plead no contest to the charges brought against it, the civil fine would be limited to $1 million. However, if they contest the charges, the fine could multiply in accordance with the projected revenue from the sale of unregulated products. Additionally, OCM regulators have indicated that further enforcement actions against other suspected violators in the industry are forthcoming.
The New York cannabis industry has faced ongoing challenges with compliance and the infiltration of illegal products into the market. Joseph Calderone, president of the Cannabis Farmers Alliance, expressed that while the actions taken against Omnium mark a positive step, there are still larger systemic issues that must be addressed. Meanwhile, John Vavalo, head of the Association of New York Cannabis Processors, commended the OCM’s actions, underlining their importance for public health and safety, and called for further scrutiny into reverse licensing practices.
In response to the ongoing challenges, OCM intends to implement a third-party seed-to-sale tracking system by December 17, 2025. This initiative aims to further mitigate issues related to product inversion and enhance compliance mechanisms within New York’s cannabis framework. Notably, Grön, one of the brands associated with Omnium, has denied any wrongdoing and maintains that their operations comply fully with OCM regulations.
Deeper Dive: News & Info About This Topic
HERE Resources
New York Takes Action Against Cannabis Processor Omnium Health
Charges Filed Against Omnium Health for Illegal Cannabis Operations
New York Regulators Target Omnium Health for Illicit Cannabis Sales
New York Penalizes Omnium Health Over Cannabis Violations
Additional Resources
- Crain’s New York: Omnium Canna Faces Millions in Fines
- News10: Omnium Health Cannabis Charges
- The New York Times: Cannabis Omnium Charges
- Cannabis Business Times: Rental License Scheme
- Cannabis Science and Technology: Omnium Health Charges
- Wikipedia: Cannabis in New York
- Google Search: Omnium Canna
- Google Scholar: Omnium Canna
- Encyclopedia Britannica: Cannabis
- Google News: Omnium Canna
Author: STAFF HERE NEW YORK WRITER
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