The Office of Cannabis Management’s Chief Equity Officer, Damian Fagon, finds himself under scrutiny as the New York Inspector General’s Office investigates allegations of retaliation and selective enforcement. Fagon has been on administrative leave since March amid claims brought to light by a NY Cannabis Insider investigation.

Administrative Leave and Uncertain Timeline

Fagon, who earned $148,000 in his role in 2023, remains employed with the agency while awaiting the Inspector General’s referral of the case back to the Office of Cannabis Management. The duration of the investigation and potential repercussions from its findings remain unclear.

Allegations of Retaliation and Selective Enforcement

The investigation stems from allegations of retaliation and selective enforcement raised in the wake of a public recall involving Hudson Valley processor Jenny Argie. Argie alleges that the Office of Cannabis Management acted in a retaliatory manner, jeopardizing her company’s viability, following critical comments she made about regulatory practices.

Increased Scrutiny and Controversies

Scrutiny of the Office of Cannabis Management’s actions regarding Argie has intensified since Fagon’s suspension. The agency’s quiet update of guidance related to banned chemicals, coinciding with Argie’s legal proceedings, has raised further questions about transparency and regulatory practices.

Continued Influence and Questions

Despite his suspension, Fagon appears to have maintained influence within New York’s legal cannabis industry, prompting concerns among operators. Questions have arisen regarding Fagon’s involvement in industry matters while on administrative leave, highlighting ongoing tensions and uncertainties within the regulatory framework.

Amid Agency Overhaul

The investigation into Fagon comes amid a broader overhaul of the Office of Cannabis Management. Governor Hochul initiated the shake-up in response to an inquiry revealing inefficiencies and mismanagement within the agency. As New York seeks to accelerate licensing processes and address illicit cannabis operations, the outcome of the investigation and subsequent reforms will shape the future of the state’s cannabis industry.