Crisp Cannabis licensees in Connecticut must pay $416K over ‘gun jumping’ violations
January 13, 2026
CT AG William Tong identified the licensees in Bridgeport, East Hartford and Cromwell operating under the “Crisp Cannabis” brand as the focus of the investigation.
HARTFORD, Conn. — Three cannabis establishment licensees in Connecticut reached a $416,000 settlement with the state on Monday to resolve allegations they violated both cannabis and antitrust laws.
Attorney General William Tong said that the licensees are in Bridgeport, East Hartford and Cromwell. They operate under the “Crisp Cannabis” brand.
Tong also said the settlement impacts Mohave CT LLC – the company looking to acquire the licensees – and the principals of all three entities.
According to investigators, these licensees violated Connecticut’s Responsible and Equitable Regulation of Adult-Use Cannabis Act, or RERACA, the Connecticut Antitrust Act and the Connecticut Unfair Trade Practices Act, or CUTPA.
The investigation discovered that the businesses and their principals engaged in “gun jumping” conduct.
RELATED: Connecticut AG secures $4.93 million judgement against smoke shop for selling illegal cannabis
This means they prematurely transferred operational control and beneficial ownership among multiple licensees before filing the notice of material change required by the RERACA.
Evidence revealed that Mohave CT LLC assumed decision-making authority and coordinated the operations, branding and staffing of three separate cannabis establishments for over 100 days before informing regulators.
This coordination eliminated the licensees’ competitive independence, consolidating them into a single enterprise before Tong’s merger review could occur. This violated the RERACA’s notice and waiting-period requirements.
Investigators also found that the businesses and their principals allegedly exchanged competitively sensitive business information, such as pricing and operational data, which aligned commercial strategies and reduced uncertainty among nominally independent competitors. This violated the Connecticut Antitrust Act.
The coordinated efforts between several licensees operating under a “de facto common enterprise” is also against the RERACA’s public policy of maintaining a fair and competitive licensing system, according to Tong.
This unfair method of competition violates the CUPTA as well.
Tong said in his release Monday that when the legislature launched Connecticut’s adult-use market, it added safeguards, including the 2021 notice of material change pre-merger notification statute.
This statute is designed to protect competition and prevent market concentration before it begins.
“This is the first enforcement action under that framework, and it underscores both the growth of this industry and the seriousness of the obligations that come with it,” Tong said. “Our goal is not only to hold companies accountable, but to ensue that all participants understand the rules designed to keep Connecticut’s cannabis industry fair, transparent and competitive for consumers and lawful operators alike.”
Tong pledged that he and state officials will continue to enforce these requirements, along with the state’s antitrust and unfair competition laws, to safeguard fair competition and uphold the integrity of the growing cannabis industry.
The settlement requires the respondents to jointly and severally pay the $416,000 civil penalty, including $104,000 that is due within 30 days. Another $312,000 will be deferred if the licensees and their principals comply fully with the agreement.
The respondents additionally agreed to put in place a comprehensive antitrust compliance program and to refrain from any future violations of the RERACA, the Connecticut Antitrust Act or the CUTPA.
The settlement will be in effect for three years. During that period, Tong’s office will monitor compliance.
Tong said that all involved cooperated fully with the investigation.
Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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