New York’s cannabis market is reeling after state regulators uncovered a massive “inversion” scheme centered on a Long Island-based manufacturer and processor. Omnium Health is accused of renting its space and license to unlicensed operators, potentially allowing unregulated cannabis to enter the state’s legal supply chain. The charges, announced last week, have created widespread confusion among dispensary owners and consumers, many of whom are now questioning what to do with the products in question — or whether they’re even safe.
RELATED: ‘A slap in the face’: Ohio lawmakers clash with voters over cannabis bill
The Office of Cannabis Management (OCM) is requesting a recall of roughly $30 million worth of product tied to Omnium, which manufactures vapes, edibles, and other finished goods for 17 licensed brands across New York. However, no official recall has yet been issued. Regulators are awaiting Omnium’s response to the charges ahead of a November 3 deadline. Retailers carrying the affected products say the lack of guidance has become par for the course.
A key question now is who will shoulder the cost: Omnium or the brands it produced for. The state’s investigation began earlier this year, when millions of dollars’ worth of products were embargoed but never officially recalled. For many dispensary owners, the current situation feels like déjà vu.
Jeremy Rivera, owner of Terp Bros, said he’s still sitting on quarantined products from April that were never reimbursed or collected. The unsold merchandise has become a major burden, “wasting cash and taking up space,” he told GreenState.
Rivera believed brands were supposed to provide refunds or credits for the affected items. But because those products were produced under Omnium’s license, both the company and its partners have been pointing fingers—and a lack of guidance from the state left retailers in the lurch.
“If the OCM gave real direction, we would [have] had a clear protocol, but since they stood silent, we’re stuck,” Rivera explained. “F***ing joke.”
He also worries about retailers with large inventories of Omnium-made products that have already been paid for. If the company loses its license, Rivera says, there will likely be no refunds or credits coming.
“I think they’ll file bankruptcy,” Rivera predicted of Omnium, adding that retailers will likely be on their own to find solutions.
RELATED: Texas athlete facing firing squad for THC gummies
Coss Marte, owner of ConBud, said he scaled back his Omnium inventory after the first investigation. At that time, he received credit from Omnium for embargoed products. Marte estimates that about $1,000 worth of merchandise currently at his shop could be affected by the potential recall and urged retailers with more exposure to act fast.
“I think they need to probably reach out to OCM as quickly as possible, start that conversation,” Marte said, adding that many retailers may begin trying to hastily sell the product in question before it’s too late.
Safety of affected products still in question
Beyond the financial fallout, the Omnium case raises questions about product safety. When asked about potential public health risks, OCM officials told GreenState there are no known concerns at this time.
“OCM is not aware of any public health risks related to the recalled products and will continue to closely monitor the situation to ensure consumer safety and uphold the integrity of New York’s regulated cannabis market,” the agency said in a statement sent to GreenState. OCM requested that its full response be published, which appears below.
RELATED: Can you smoke weed and own a gun? The Supreme Court will soon decide
That statement appears to contradict internal OCM documents from the initial Omnium investigation. In those findings, the agency cited several violations that it determined “jeopardize the immediate health, safety, or well-being of the public.”
One reported violation found that Omnium “failed to demonstrate a real-time record of inventory tracking,” which “poses a potential risk to public health and safety which must be investigated.”
The investigation documents quoted have been widely circulated online. The OCM did not respond when asked to verify their authenticity. Omnium has not responded to GreenState’s multiple requests for comment.
The discrepancies, combined with OCM’s lack of clear guidance, could erode consumer trust in New York’s regulated cannabis market. As the state continues to fight the illicit market, one of the legal industry’s main selling points remains that its products are tested, traceable, and safe.
“People are confused,” Marte said. “It’s a lot of mistrust, and I wish people could get the proper information.”
Marte noted that the OCM is understaffed and working through growing pains as New York’s market evolves. Still, the lack of clarity around the Omnium case could create real problems for both retailers and consumers as they wait for guidance on what to do next.
Full statement from OCM:
“The Office of Cannabis Management’s top priority remains ensuring that every product sold in New York’s legal market is safe, tested, traceable, and produced according to regulatory strictures. There are no known health or safety concerns associated with the recalled cannabis products at this time. This recall is a precautionary regulatory action tied to licensee compliance violations — not to product quality or contamination issues. Omnium Health has until November 3 to formally respond to the charges and provide the required documentation under the state’s regulatory process. The Office of Cannabis Management continues to monitor the situation closely and will take any additional actions needed to protect consumers and uphold the integrity of New York’s regulated cannabis market.
“While this recall occurs at the retail level, it is part of the Office’s broader effort to maintain market health and accountability across the supply chain. At this time, OCM is not aware of any public health risks related to the recalled products and will continue to closely monitor the situation to ensure consumer safety and uphold the integrity of New York’s regulated cannabis market.”
