Damian Fagon, the chief equity officer of the New York Office of Cannabis Management (OCM), is set to resign in November, despite being cleared of allegations by the state inspector general's office.
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The investigation, which concluded recently, found the accusations that Fagon used his authority to retaliate against a cannabis processor and improperly interfered with retail license applications to be unsubstantiated.
Fagon had been on leave since March 2024, following complaints that he had punished Jenny Argie, a cannabis processor, for publicly criticizing the OCM. Argie alleged that after she raised concerns about regulatory violations in the cannabis industry, such as mislabeled products and cannabis contaminated with mold, Fagon failed to act on these issues.
Her subsequent lawsuit claims retaliation from OCM, including a targeted raid of an Albany store selling her products and a recall falsely branding her products as unsafe. Additionally, Argie’s facility was later inspected, and her business was temporarily shut down.
Despite these allegations, the inspector general's report concluded there was no evidence of wrongdoing, although it criticized some of Fagon's statements as "imprudent."
Fagon’s departure is part of a broader leadership shakeup in the OCM, following Governor Kathy Hochul's directive to review the agency's operations amid mounting criticism of its handling of cannabis licensing and regulation. Chris Alexander, the former executive director, and other top officials have also left the agency over the past few months.
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