In a powerful affirmation of the rights of licensed hemp businesses, the NYC Office of Administrative Trials and Hearings (OATH) recently ruled in favor of our client, a state-licensed hemp retailer, following an aggressive raid and sealing by the NYC Sheriff’s Office. Represented by attorneys Joshua Bauchner and Natalie Diaz of Mandelbaum Barrett PC, the client was accused of operating outside the bounds of its license, leading to a summons and an immediate sealing of the business. However, the evidence presented by our legal team challenged these claims, showing that the Sheriff’s actions lacked sufficient reasoning.
During the hearing, Carlos Sanchez, regional manager of the client’s business with a background in neuropharmacology and chemistry, provided critical testimony on the nature of the products sold, highlighting their compliance under a hemp license. Despite the Sheriff’s allegations, OATH Hearing Officer Amy Baranoff dismissed the summons, concluding that the Sheriff’s findings were “somewhat conclusory and lacking in sufficient detail.”
Beyond dismissing the summons, OATH took an additional step: the Hearing Officer recommended lifting the sealing order, potentially allowing our client to reopen soon. The NYC Sheriff now has four days to decide whether to accept this recommendation. This case also marks a significant precedent, as it is among the first since the ruling in A S A 54 v. City of New York, et al., Index No. 721248/2024, which found aspects of the Sheriff’s enforcement process unconstitutional.
This victory sets a meaningful precedent for State-licensed hemp retailers and underscores the necessity of fair, evidence-based enforcement actions. As the Sheriff reviews next steps, our team remains committed to defending the rights of licensed businesses and ensuring regulatory fairness.