A former chief of staff to New Jersey state Sen. Raj Mukherji has filed a 12-count lawsuit accusing the Democratic lawmaker of exploiting the state’s social equity licensing rules. The suit alleges Mukherji recruited people from his political circle to serve as majority “owners” of cannabis shops they did not truly control.
According to the lawsuit, those paper owners were then swapped with other operators so each could claim the licensing preference New Jersey created for minority- and women-owned businesses and other disadvantaged applicants. Mukherji is described in the suit as the “central decision-maker” and “recruiter” in the scheme.
The allegations center on a dispensary in Springfield, N.J. Justin Shoham, a Democratic political consultant and former Mukherji chief of staff, says he was listed as the 60% owner of that dispensary.
Shoham’s suit claims the shop was actually run by a national cannabis executive and a management company bearing Mukherji’s initials. The dispensary was saddled with more than $4 million in debt and shut down within a year, according to the lawsuit.
Shoham says he was promised $180,000 for his stake and never received it. He also says he has Mukherji on tape explaining the arrangement.
Mukherji is a Democrat who has had ownership interests in dispensaries in several states. He is one of several people named in the lawsuit alleging they took advantage of state marijuana law.
New Jersey wrote its legalization rules to give minority- and women-owned businesses and other disadvantaged applicants a head start on licenses. The lawsuit alleges Mukherji turned that policy into a business model.
The suit was filed by Shoham, who served as Mukherji’s chief of staff before working as a Democratic political consultant.
The Springfield dispensary at the center of the dispute closed within a year of operating. The lawsuit says the management company and executive ran it while Shoham held the ownership stake on paper.
Mukherji denies wrongdoing. He said he was “stunned” by the lawsuit, according to the report.
The senator has not detailed his full response to the specific allegations in the complaint. The lawsuit remains pending.
He says the recording of Mukherji supports his account of the arrangement.
The case highlights how New Jersey’s social equity licensing preferences are being tested in court. The outcome could affect how ownership rules are enforced.
No trial date or further proceedings were reported.
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