A spokesman denied all allegations against Huang and STIIIZY.
The founder of the popular California cannabis brand STIIIZY has been embroiled in the illicit side of the marijuana industry for years, as a landlord to unlicensed dispensaries scattered across the Los Angeles metro area, according to a report in the Los Angeles Times.
The outlet reported that STIIIZY founder Tony Huang owns multiple holding companies that were connected to at least nine illegal marijuana shops in Southern California. Huang has faced multiple legal actions by law enforcement over ties to various illegal dispensaries, but all have been settled out of court. And Huang – along with STIIIZY parent company the Shryne Group – continues operating in the legal cannabis landscape.
Still, legal issues dog Huang and STIIIZY, as localities investigate multiple buildings owned by Huang that have also served as illegal dispensaries, The Times reported.
One ongoing court case in Compton alleges that an illegal dispensary named Fly High 20 Collective is an illustration of how Huang is “known for his serial operations of various illegal cannabis dispensaries,” according to an abatement lawsuit.
Another legal action, between the city of L.A. and Huang and one of his business partners over another illegal dispensary that was repeatedly raided by police, was settled out of court for $450,000, which a spokesperson for Huang characterized to the press as a “small fine … for convenience only.”
A spokesman for Huang and STIIIZY denied all wrongdoing and said Huang has no connections to illegal marijuana businesses. As soon as he learned of them, he’s tried to evict tenants that have run unlicensed cannabis shops, they said.
STIIIZY and Huang are just the latest high-profile California marijuana operators to be accused of having one foot in the illicit market. Such allegations have been rampant for years in the Golden State, and have even touched publicly traded companies such as Glass House Brands.
According to the California Department of Cannabis Control, the allegations against Huang and STIIIZY remain just that – allegations.
DCC spokesman David Hafner told The Times that the agency is “currently investigating this situation to determine the appropriate next steps,” while STIIIZY’s business permits all remain active, The Times reported.
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