New York’s Cannabis Chief Equity Officer Abruptly Resigns Amid Scandal

New York’s Cannabis Chief Equity Officer Abruptly Resigns Amid Scandal

Damian Fagon’s resignation as New York’s Chief Equity Officer highlights ongoing leadership challenges within the state’s cannabis program, raising concerns about its commitment to equity and social justice.

Damian Fagon, the Chief Equity Officer of New York’s Office of Cannabis Management (OCM), announced his resignation, effective November 27, 2024, after a storm of controversy. His decision follows an investigation into allegations of retaliation, which although found to be unsubstantiated, has nonetheless cast a shadow over his time in office.

Background and Allegations

Fagon, who was appointed to the position in 2022, had become a pivotal figure in shaping New York’s equity-focused cannabis policy. However, in March 2024, the OCM placed him on administrative leave after accusations surfaced. The claims? That he had allegedly used his regulatory powers to retaliate against a cannabis processor who had publicly criticized the agency.

The New York State Inspector General’s office launched an extensive investigation, pouring over emails, documents, and recorded phone calls, as well as interviewing several OCM staff members. After months of inquiry, the investigation concluded that there was no evidence to substantiate the claims against Fagon.

But even though Fagon was cleared of wrongdoing, his resignation signals deeper issues within the OCM that go beyond this single controversy. This departure is yet another in a growing list of high-profile exits, and it raises pressing questions about the leadership and future of New York’s cannabis regulatory body.

Trouble in New York’s Cannabis Rollout

New York’s cannabis program has been plagued by delays and missteps, and Fagon’s resignation comes at a time when the OCM is already under heavy scrutiny. The agency, which is responsible for rolling out the state’s adult-use cannabis market, has faced sharp criticism for its handling of licensing, delays, and what some see as bureaucratic red tape.

Governor Kathy Hochul ordered a review of the OCM’s operations earlier this year, a move that led to several leadership changes, including the resignation of former Executive Director Chris Alexander. Fagon’s resignation adds fuel to the ongoing fire of dissatisfaction with the agency’s performance.

In a state where equity and social justice were supposed to be the cornerstone of cannabis legalization, Fagon’s exit leaves a gap that will be difficult to fill. His work focused on creating pathways for those most affected by the War on Drugs to participate in the emerging cannabis market, an effort that many saw as essential to the law’s promise of social and economic justice.

Fagon’s Legacy and Impact

Despite the controversy, it’s undeniable that Fagon made significant contributions during his tenure. As a third-generation farmer with deep roots in agriculture and international development, Fagon brought a unique perspective to the role. He understood not only the complexities of the cannabis plant but also the broader socio-economic issues that have long impacted marginalized communities.

Acting Executive Director Felicia Reid was quick to praise Fagon’s work. “He has done tremendous work leading OCM’s equity efforts, setting up OCM to take the most innovative and equity-driven approach to the development of New York’s cannabis industry,” Reid said in a recent statement.

However, as Fagon prepares to exit, his future plans remain unclear. What is clear, though, is that his absence leaves a significant void in the agency’s leadership at a crucial time. New York is still grappling with the mechanics of rolling out a legal cannabis market that lives up to its lofty promises of fairness, equity, and social justice.

What’s Next for New York’s Cannabis Industry?

The challenges facing New York’s cannabis market are not limited to leadership changes, though Fagon’s ouster comes at a time of significant shakeup going on in the City’s leadership and law enforcement.

The state is still in the early phases of developing a comprehensive cannabis industry, and there’s a lot of ground to cover—particularly in ensuring that the market is truly equitable. With Fagon’s departure, there’s now an even greater need for strong, transparent leadership to guide the state’s cannabis program forward.

The question now is whether the OCM can regain the trust of stakeholders and the public. The agency’s next moves will be closely watched, as it seeks to recover from these high-profile departures and continue building a legal cannabis market that lives up to the ideals of fairness and inclusion that New York promised when it passed its adult-use law.

As the OCM looks ahead, the focus will need to be on rebuilding and ensuring that the mission of social and economic equity does not get lost in the shuffle. Fagon’s contributions will no doubt leave a lasting mark, but the future of New York’s cannabis industry now depends on the ability of the OCM to not just maintain, but strengthen, its commitment to fairness and opportunity for all.

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