In a developing story that has raised eyebrows in the cannabis industry, California-based cannabis megabrand Stiiizy is currently under investigation by New York authorities for allegedly smuggling marijuana from out of state into the licensed market. According to a report from The New York Times, the New York State Office of Cannabis Management (OCM) is probing Stiiizy along with several other companies for potentially “laundering” products through a state-licensed processor.
On April 6, 2025, the Times reported that OCM inspectors conducted a surprise audit of Omnium Canna, a Long Island-based processor affiliated with Stiiizy. The investigation centers on allegations of “inversion,” a term used to describe the insertion of marijuana products produced outside of regulated channels into the licensed supply chain. The OCM has been aware of inversion practices occurring in New York and recently established a Trade Practices Bureau to specifically address such regulatory violations.
The investigation also includes other cannabis brands such as Grön, Mfused, To the Moon, Turn, and Waahoo, which is Omnium Canna’s house brand. However, none of the companies involved have publicly responded to the Times’ request for comments regarding the investigation.
In a statement to MJBizDaily, Stiiizy CEO James Kim vehemently denied any wrongdoing, asserting that the OCM’s audit found Omnium Canna’s operations compliant with New York laws and regulations. “We are committed to operating within the legal frameworks of each state we serve,” Kim said, emphasizing the company’s dedication to compliance…