Ex-Aide Sues NJ Senator, Alleges Scheme to Exploit Cannabis Social-Equity Rules

Former chief of staff Justin Shoham has filed a 12-count verified lawsuit alleging that New Jersey State Sen. Raj Mukherji recruited nominal minority owners to qualify cannabis businesses for social-equity licensing and then sidelined those owners once operations began. The complaint, filed in Union County Superior Court, names Mukherji and several cannabis industry entities and executives, including Story Companies CEO Jason Vedadi and a management firm referred to as EMNJ Management LLC.

What the Complaint Alleges

Shoham, a Democratic political consultant who is half Colombian and who worked for Mukherji for two years, says he was listed as a 60% owner of Story Dispensary in Springfield, N.J., under a social-equity arrangement. He alleges he was promised a buyout of at least $180,000 for that stake and $191,500 for consulting and political support tied to a planned Union Township dispensary that never opened.

"Wherever I have a minority or woman ... at 60% they have their person at 40% and where they have their cannabis convict or social equity minority ... at 60% I have my person at 40%,"

The suit cites a recorded 2022 phone call in which Mukherji allegedly described a practice of using paper owners to secure social-equity priority and then substituting operators later. Shoham contends that the Springfield dispensary accumulated more than $4 million in debt, was controlled by outside management, and closed within a year—while he never received the promised payments.

Defendants' Responses

Mukherji issued a statement saying he was "stunned" to be named, disputed any wrongdoing, and called the complaint sensational. He said he has often invested with partners from minority and impact-zone communities and denied exploiting Shoham. Story Companies, through attorney Lee Vartan, called the lawsuit a "shakedown" and said the Springfield store's structure was fully disclosed to regulators and that an affiliate invested millions to try to make it successful.

Jason Vedadi's lawyer, Paul Conant, said Vedadi has "little to no personal knowledge" of the allegations and that the filings improperly sensationalize what they characterize as a fee dispute. Defendants have warned they may seek sanctions and counterclaims if the complaint proceeds.

Legal Claims and Stakes

Shoham's complaint asserts claims including fraud, concealment, breach of contract, unjust enrichment and civil conspiracy. He seeks the $180,000 buyout, $191,500 in consulting fees, punitive damages and other relief. His attorney, Robert Donaher, said the complaint is verified under oath and emphasized that the case highlights broader concerns about so-called straw ownership in social-equity cannabis programs.

Context and Next Steps

Straw ownership—using nominal or paper owners to obtain regulatory benefits—has challenged social-equity cannabis programs in several states. Regulators often struggle to prove such schemes. What distinguishes this case is the allegation that a sitting legislator described the tactic on a recorded call.

The lawsuit is public record in Union County Superior Court. Defendants have denied the allegations and signaled vigorous defenses, possible counterclaims and requests for sanctions. The litigation is likely to include discovery of corporate records, communications and the recording referenced in the complaint.

Note: All allegations are from the plaintiff's verified complaint. Defendants deny wrongdoing and the case remains to be proven in court.