New York State’s Cannabis Management Office (OCM) filed multiple charges on October 20 against Omnium Health, Inc. (doing business as Omnium Canna), a licensed cannabis processing and distribution company. The allegations suggest that the company assisted unauthorized operators in the manufacturing and sale of cannabis under its name. The regulatory body has ordered a statewide recall of cannabis products associated with the company and is seeking to revoke its license along with imposing fines.
According to the “Notice of Pleading” issued by OCM, Omnium allowed unlicensed operators to utilize its facilities and resources for cannabis production while charging them rent. This practice, known as “rent-a-license,” enabled unlicensed operators to circumvent regulatory requirements and distribute products to legally-operating retail stores throughout the state.
Regulators pointed out that such behavior undermines the transparency and compliance foundation of the cannabis market within the state.
Felicia A. B. Reid, Acting Deputy Executive Director of OCM, stated that if the allegations are substantiated, Omnium’s actions clearly contradict the original intent of the regulatory framework. She further emphasized that state law explicitly prohibits license transfers and restricts licensed operators to engage in cannabis production and distribution.
The investigation on Omnium by OCM began in February 2025 following an internal compliance department report. The Trade Practices Bureau (TPB) took over the investigation. Reviewing audit records, contract documents, and conducting interviews with multiple witnesses, investigators found that Omnium shielded unlicensed operators under the guise of being licensed, allowing them to use its facilities and equipment for production and packaging, ultimately leading to the entry of related products into the legal market.
OCM stated that such ‘rent-a-license’ practices undermine market integrity and weaken the integrity of the regulatory system.
OCM disclosed its intent to pursue the following punitive measures against Omnium: (1) revocation of Omnium’s processing and distribution licenses, (2) prohibition of any future applications for cannabis-related licenses, (3) civil fines based on proceeds from illegal products, (4) a comprehensive recall of products manufactured by unlicensed operators, and (5) destruction of all illegally-produced cannabis goods.
For more information on regulatory standards, please refer to the official website link: [https://cannabis.ny.gov/compliance](https://cannabis.ny.gov/compliance).