Dutchess County's first recreational marijuana dispensary was shut down last week, according to a sign on the door, but court filings indicate the owner is facing a lot more trouble.

Black Market Canna Co., Dutchess County’s first licensed recreational marijuana dispensary, has been ordered to suspend sales as its owner faces federal firearms charges and additional allegations detailed in court filings.

The New York State Office of Cannabis Management (OCM) issued a suspension order on October 14, 2026, and served it at 11 a.m., according to the Poughkeepsie Journal. The agency said the action followed an investigation into activities at the dispensary that created a risk to public safety.

Employees cannot sell cannabis while the suspension remains in effect. However, the state has not issued an order to seal the building, meaning the suspension does not necessarily amount to a permanent closure.

The action comes as its owner, Ali Khan Lodhi, faces a federal charge of possessing firearms and ammunition as a convicted felon, along with additional allegations raised by federal prosecutors in court proceedings.

Poughkeepsie’s First Legal Recreational Dispensary

Black Market Canna Co. opened at 89 Main Street in Poughkeepsie in late March 2024, becoming Dutchess County’s first licensed recreational cannabis dispensary.

The business celebrated its grand opening on April 20, 2024 and subsequently became an established part of the downtown business district. Now, its future is uncertain as the state’s suspension remains in effect.

Owner Charged After FBI Raid

Lodhi, 44, was charged federally in July 2026 after investigators searched his Poughkeepsie-area home and vehicle, according to reporting by News 12 and Daily Voice.

A federal criminal complaint filed in the Southern District of New York alleges that investigators recovered two 9mm firearms, loaded magazines and hundreds of rounds of ammunition during the July 29 search.

According to the complaint, one firearm was found in the garage near a gun safe, while another handgun was attached magnetically to a workbench. Investigators also reported finding ammunition inside the safe and on a nearby shelf.

The complaint says Lodhi told investigators the firearms had been "legally purchased by his domestic partner." The woman allegedly told investigators that she had given the guns to Lodhi for safekeeping.

Federal prosecutors also cited surveillance footage recorded at the dispensary in March 2026. According to the complaint, the footage appeared to show Lodhi removing a handgun from his waistband and handing it to another person inside the business.

Prosecutors allege Lodhi was prohibited from possessing firearms because of prior felony convictions.

The federal charge is an allegation, and Lodhi is presumed innocent unless proven guilty.

Prosecutors Raise More Serious Allegations

Lodhi’s legal troubles have since expanded beyond the firearms case.

In an October 16 report, the Poughkeepsie Journal detailed allegations from federal court filings that Lodhi attempted to arrange the killing of his business partner, whom he was involved in a lawsuit with earlier this year.

According to reports of the government’s arguments in court, prosecutors alleged Lodhi approached two people in separate attempts to arrange the killing. One person allegedly was asked to carry out the killing, while a Black Market Canna Co. employee was allegedly asked to kill the business partner or find someone else to do it.

The outlet reported that neither alleged plot moved forward.

Prosecutors cited the allegations in arguing against Lodhi’s release on bail. A federal judge denied his request for release on October 14, and Lodhi remains detained pending trial, according to online court records.

What Happens to Black Market Canna Co. Now?

For now, the immediate issue is the state’s suspension of the dispensary’s license.

The Office of Cannabis Management has prohibited cannabis sales while the order remains in effect.

It remains unclear when, or whether, the dispensary will be permitted to resume sales. The suspension could remain in place until it is lifted or a final determination is made.

This story will be updated as more information becomes available.

Inside New York's Record $17 Million Cannabis Bust

The largest cannabis seizure in the history of New York's Office of Cannabis Management happened this August in Monroe County, where investigators say they uncovered a massive illegal operation that was supplying smoke shops across the state.

Gallery Credit: Office of Cannabis Management, NEW YORK

Source: Poughkeepsie Dispensary Shut Down Amid Owner’s Federal Charges