California-based cannabis megabrand Stiiizy is under investigation in New York for allegedly smuggling marijuana from out of state into licensed stores.
Citing two unidentified sources, The New York Times reported Monday that Stiiizy is one of “several companies” that the state’s Office of Cannabis Management is probing for possibly “laundering” product into the state via a state-licensed processor.
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OCM inspectors on Monday conducted a surprise audit of the processor, Long Island-based Omnium Canna, the newspaper reported.
According to the Times, regulators are also investigating:
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Allegations of “inversion,” the term for inserting marijuana products produced outside of regulated channels into the licensed supply chain, have been circulating in industry circles for some time.
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