The District’s Alcoholic Beverage and Cannabis (ABC) Board has aAn unlicensed storefront in Northeast Washington has agreed to permanently shut its doors rather than fight District regulators in court.
The District’s Alcoholic Beverage and Cannabis (ABC) Board officially approved an Offer-in-Compromise (OIC) on May 6, 2026, finalized against WGH Enterprises Inc., which operated as Capitol CBD at 6 P Street, NE. The settlement concludes an enforcement action that began when the Alcoholic Beverage and Cannabis Administration (ABCA) issued a summary closure order against the business for operating without a license.
The Anatomy of the Settlement
Rather than proceeding to a formal regulatory hearing, Capitol CBD owner Patrick Gray signed a binding agreement with the Office of the Attorney General (OAG). By accepting the OIC, the business waived its rights to a hearing, to contest liability, or to appeal the final order.
The approved settlement enforces several strict conditions:
- Forced Eviction and Closure: The summary closure of the storefront is now permanent. The operators confirmed that their lease on the P Street property expired on April 30, 2026, and promised that no connected beneficial owners, heirs, or assigns will attempt to re-lease the space.
- District-Wide Product Bans: The operators are prohibited from selling cannabis, cannabis products, cannabinoids, hemp, CBD, tetrahydrocannabinolic acid (THC-A), and THC anywhere in D.C.—including via online delivery—unless they obtain a legitimate medical cannabis retail license.
- Targeting Other Contraband: The agreement expands beyond cannabis, explicitly forbidding the respondents from selling flavored tobacco, Kratom, and Schedule I substances, such as psychedelic mushrooms and DMT.
- A Looming $20,000 Penalty: The settlement leaves no room for relapse. Any future violation of District cannabis laws by the operators will automatically count as a subsequent offense, triggering an immediate $20,000 fine.
A Legal Path Forward?
The terms do leave one door open: the agreement explicitly notes that nothing in the OIC prevents the operators from applying for a legal medical cannabis retail license through official District channels in the future.
The District’s case was prosecuted by Assistant Attorney General Sophia Mietus under Attorney General Brian Schwalb. The final order approving the shutdown was signed by ABC Board Chairperson Donovan Anderson and board members Silas Grant, Jr., Teri Janine Quinn, Ryan Jones, and David Meadows.
The resolution of Case No. 25-ULC-00078 serves as the latest marker in the city’s ongoing initiative to pressure unlicensed brick-and-mortar operations into either entering the regulated medical framework or exiting the D.C. market entirely.
