Scandal Unfolds: NY Cannabis Chief on Leave Amid Retaliation Firestorm
Top state cannabis official Damian Fagon put on administrative leave following NY Cannabis Insider investigation.
A high level official at the Office of Cannabis Management was placed on administrative leave following a NY Cannabis Insider investigation about allegations of retaliation and selective enforcement on behalf of the state agency.
Damian Fagon, the OCM’s chief equity officer, was placed on leave last week, according to an agency spokesperson.
“As a regulatory body, we take questions about the integrity of our systems seriously,” said OCM Executive Director Chris Alexander in a statement to NY Cannabis Insider.
“To ensure a transparent, thorough investigation into the allegations made, the Office placed Mr. Fagon on leave. We remain committed to building a sustainable, equitable cannabis market and protecting our integrity and credibility during such a pivotal moment for our market. The important work our Social & Economic Equity Team has been doing since the creation of this agency will continue uninterrupted during this time.”
Fagon did not immediately respond to a request for comment.
Fagon’s departure follows a NY Cannabis Insider investigation about Jenny Argie, a Hudson Valley processor who was the subject of the first and only recall in the state.
The OCM issued the state’s first recall in December after one of Argie’s products fell 1 milligram below its advertised THC level. In paperwork filed in court last week, Argie claims the recall was retaliation for leaking audio from a conversation with Fagon.
The contents of that conversation were published in November.
After running that story, Fagon yelled, cursed and singled out Argie by name in a call with a NY Cannabis Insider reporter.
“I know it was Jenny,” Fagon said at the time.
“It’s bittersweet to receive the news that Mr. Fagon has been put on administrative leave,” Argie told NY Cannabis Insider on Sunday. “I’ve only ever asked for a fair playing field to allow small businesses, all social equity applicants and licensees the chance to innovate and shine.”
“I hope those who have been in fear of speaking up, feel they have a voice now. I urge the OCM to work closely with the [Cannabis Control Board] and those of us trying to steer the New York cannabis industry toward a bright and equitable future,” she said.
Argie sued the OCM last week to lift a stop-work-order, which had been placed on her facility earlier this month. The stop-work order came six days after NY Cannabis Insider reached out to the state agency for a comment regarding a three-month investigation into allegations of retaliation.
Argie’s products are currently quarantined and her facility shut down after a second enforcement effort targeted her business –– pausing her cash flow, she said.
In court papers, Argie alleges the enforcement was a heavy-handed response to her going on the record about the December recall.
The processor, who is a cancer survivor and who has championed New York-focused businesses, will go out of business by the end of this month if the penalties are not lifted, she said.
“Fagon deserves the right of due process, and it’s my hope that through this we have all learned a valuable lesson,” said Ruben Lindo, an entrepreneur and founder of multi-state cannabis brand Blak Mar Farms. “That it’s our inherent right as Americans to speak out to government and voice our disapproval of their actions as it affects everyone regardless of race and or creed.
“Unfortunately, Jenny was not afforded the same,” Lindo said.
