NYC Council probes sheriff over alleged cash seizures at unlicensed smoke shops

The New York City Council is demanding records from Sheriff Anthony Miranda after he testified last month that his deputies were not seizing cash from unlicensed cannabis shops. The statement contradicts accounts from deputies and smoke shop owners, two councilmembers say in a letter obtained by Gothamist.

The new inquiry comes as smoke shop owners claim hundreds of thousands of dollars have been taken from them, and they are now seeking to overturn the law that led to their closures.

The letter , dated Oct. 4, was written in response to Miranda’s September testimony before the City Council , where he said he didn’t “believe” his deputies had seized cash during " Operation Padlock to Protect ," a citywide crackdown on unlicensed pot shops .

Authored by Councilmembers Gale Brewer and Justin Brannan, the letter calls for clarification of Miranda’s testimony, details on asset forfeiture processes, forfeiture account balances, correspondence with smoke shop landlords, staffing numbers and cannabis enforcement data.

“Testimony from the public and recent reports in the press have raised serious questions about your testimony,” the letter states, referencing a September council hearing on cannabis enforcement. “It is imperative you immediately clarify and provide additional information.”

Miranda’s testimony contradicted allegations made during the hearing both by smoke shop attorneys and sheriff’s deputies, who said cash had been seized from some shops. A week after Miranda’s testimony, investigators seized a large sum of cash at the sheriff’s headquarters, according to the city Department of Investigation. A City Hall spokesperson said at the time that when Miranda eventually became aware of the cash at his headquarters, he alerted the Department of Finance, which alerted the Department of Investigation.

Miranda is also reportedly being investigated over an allegation he sold contributions for the National Latino Officers Association in exchange for overlooking enforcement actions. Additionally, he is embroiled in a protracted dispute with union leaders over staffing issues.

Despite these controversies, Mayor Eric Adams has defended Miranda, even as several key figures in the mayor’s administration have resigned amid multiple investigations.

A spokesperson for the mayor's office said City Hall plans to respond to the Council’s request by Oct. 18. Miranda previously told NY1 that any cash taken from cannabis shops is properly documented and that the money discovered in his office might have been the result of a bookkeeping error dating back to 2018.

The union representing sheriff’s deputies has accused Miranda of attempting to cover up the missing cash.

“He's not mentioning that he forced people to take people's money, he forced [deputies] to take safes,” Ingrid Simonovic, president of the New York City Deputy Sheriff’s Association, said.

Some attorneys representing smoke shop owners praised the City Council’s investigation, while others criticized it as “too little, too late,” noting that the sheriff’s office has been conducting cannabis inspections since May.

“All they cared about was shutting down these stores,” said attorney Lance Lazzarro, who represents roughly 10% of the 1,100 stores the sheriff’s office has closed. “Now that it's come to light how much money has actually been found, and that it's possibly even a criminal investigation, now all of a sudden they have to show like they're doing their due diligence.”

The shutdown of unlicensed cannabis shops increased earlier this year following revisions to state and city cannabis laws. Under the new law, local authorities were given the power to close illegal vendors immediately during the first inspection, without needing a court order.

Lazzarro estimated that the sheriff’s office has seized more than $500,000 from his clients alone.

Another lawyer, Nadia Kahnauth, estimated that the total amount of cash seized from all 1,100 stores inspected by the sheriff exceeds $2 million.

Lazzarro has filed a lawsuit challenging the statute that allows the city to close unlicensed smoke shops so swiftly. The suit argues that the law, which took years to catch up with the rapidly growing retail cannabis industry, violates due process because it grants the sheriff the authority to keep stores closed, even when a city administrative court recommends reopening them.

“He's keeping around 80% of them closed,” Lazzarro said. “He just overturns decisions that happen at [the Office of Administrative Trials and Hearings] routinely now.“