The Connecticut attorney general’s office announced Tuesday that a New Haven smoke shop on Chapel Street has been ordered to close permanently after repeatedly violating the state’s cannabis laws. The settlement forces Anesthesia Smoke and Convenience to cease operations and obligates its owner, Fadhl Shaif, to pay a $100,000 penalty. The agreement also bars Shaif from owning or operating any other business in Connecticut.
Enforcement followed repeated compliance failures
Attorney General William Tong said the move came after a series of unannounced compliance checks and follow-up inspections by state regulators. Tong first sued the business and Shaif in 2024 after agents discovered thousands of unlicensed, high-THC cannabis products for sale, according to his office.
"Legal cannabis is not a free-for-all. If you are unlicensed, if you sell bootleg, unregulated cannabis, we will find you and we will hold you accountable."
The initial legal action produced a $50,000 stipulated judgment, with $25,000 suspended provided the shop complied with several requirements. Among those provisions were a prohibition on offering cannabis products without a license and a requirement to submit annual compliance reports to the attorney general’s office.
According to the attorney general’s office, the shop repeatedly failed to meet those conditions. State Department of Consumer Protection (DCP) drug control agents visited the business on two separate occasions after the judgment was entered. On both visits, agents reported finding hundreds — and in the earlier compliance checks, thousands — of cannabis products that lacked the proper licensing and regulatory paperwork. New Haven police officers joined state agents on one of those inspections.
Contempt motion led to settlement ending operations
When the business failed to comply with the reporting and other obligations, Tong’s office filed a motion for contempt on March 30. The settlement announced Tuesday resolves that contempt proceeding. In addition to the required permanent closure and the $100,000 penalty, the settlement includes a further financial provision: Shaif would be required to pay an additional $125,000 if he does not comply with the terms of the agreement.
The settlement also contains a business‑operation restriction that prevents Shaif from owning or operating any other Connecticut business, according to the attorney general’s office.
- Business: Anesthesia Smoke and Convenience, Chapel Street, New Haven
- Owner: Fadhl Shaif
- Action: Permanent closure and $100,000 penalty; additional $125,000 if noncompliant
| Year | Enforcement Action | Financial Terms |
|---|---|---|
| 2024 | Initial lawsuit; unannounced compliance checks found thousands of unlicensed high‑THC products | $50,000 stipulated judgment (with $25,000 suspended) |
| 2026 | Motion for contempt filed March 30; settlement ordered permanent closure | $100,000 fine; additional $125,000 if terms violated |
Context for consumers and merchants
Connecticut law allows adults 21 and older to possess cannabis purchased from the regulated market, where products must meet testing and packaging standards. The attorney general’s office stressed those protections are tied to the licensed supply chain; products sold outside of licensed businesses do not have the same oversight.
For New Haven residents and business owners, the case underscores the state’s continued enforcement of cannabis regulations and the consequences for retailers who operate outside the regulated system. Local officials and consumer advocates have repeatedly warned that unregulated products may lack required testing for potency and contaminants, a central rationale cited by regulators in actions against unlicensed sellers.
Tong’s statement framed the case as an example of the office’s stance on unlicensed cannabis sales, reiterating that enforcement will continue when businesses violate licensing and reporting requirements.
The permanent closure removes one retail outlet from Chapel Street’s commercial mix and adds to broader regulatory actions the attorney general’s office has pursued against other Connecticut smoke shops that sold illegal cannabis products.
Until further action is announced by the attorney general’s office or local authorities, the settlement stands as the final resolution disclosed publicly by state officials.
