Convicted cocaine cash launderer David Berger no longer holds an Illinois cannabis license, signaling that he has cut ties with the Ivy Hall marijuana dispensary chain he helped launch, according to state records and regulators.
Berger, a Northbrook native who co-founded Ivy Hall, was found guilty last year in federal court of laundering hundreds of thousands of dollars in drug proceeds by converting cocaine money into private jet flights for a trafficker. He’s set to be sentenced July 1.
The former renewable energy and cannabis executive had continued to hold a state cannabis license even after his conviction, raising questions about his role in one of Illinois’ fastest-growing marijuana brands and the state regulatory system’s ability to keep felons out of the industry.
Despite the guilty verdict, Berger remained licensed for months as a “registered adult-use principal officer” — a designation reserved for top cannabis executives, owners and key decision-makers, the Chicago Sun-Times reported in March.
His license was terminated on May 11.
But that move wasn’t the result of a disciplinary action. Illinois Department of Financial and Professional Regulation officials say they couldn’t schedule a disciplinary hearing over Berger’s conviction until he’s sentenced.
Explaining the termination of Berger’s license, they say: “When an owner leaves a company for any reason — quitting or being removed — they are required by law to file paperwork with [the agency] declaring that they are leaving.
“IDFPR then moves the license from active status to terminated status, as they have terminated their relationship with the dispensary.”
An agency spokesperson says a license termination “does not indicate an individual was disciplined, just that they no longer have a relationship with the store they were licensed for.”
But records filed by Ivy Hall with the Illinois secretary of state’s office still list him as the registered agent for eight of the company’s 10 dispensaries and as the manager of four locations. An Ivy Hall spokesperson didn’t immediately respond to questions.
A separate development involving a far northwest suburban cannabis shop raises new questions about the opaque system for licensing cannabis businesses — and Berger’s continued role in the industry.
TC Investment Fox Lake LLC was the license-holder that opened Smokehouse Fox Lake — a waterfront dispensary in that suburb — in 2024. In December, TC Investment Fox Lake filed paperwork with the secretary of state saying it intended to do business under the name of Ivy Hall-Fox Lake.
Timothy Cherwin, who’s listed as the manager of the company, referred questions to Berger. He says Berger is one of the “main guys at Smokehouse.”
Berger couldn’t be reached for comment. A lawyer who represents him in his criminal case didn’t respond to a request for comment.
TC Investment Fox Lake’s renaming has drawn scrutiny because Illinois law caps cannabis ownership at 10 dispensaries.
Some industry observers have questioned whether the Fox Lake store could in effect become an 11th Ivy Hall location.
State regulators say no such change has been approved.
The IDFPR spokesperson says the agency hasn’t authorized the Fox Lake dispensary to operate under the Ivy Hall name and that business filings with the secretary of state aren’t the same as a state cannabis license.
“Businesses registered with the secretary of state are not equivalent to a dispensary license, which can only be issued by IDFPR,” the spokesperson says, adding that any ownership or control changes must be disclosed to regulators and undergo extensive review.
“If, upon review, any entity or individual would violate the 10-license cap following the change, IDFPR is required to deny the change request,” the spokesperson says.
Regulators have acknowledged concerns about hidden ownership arrangements in the cannabis industry. The agency says it pushed for language in a bill awaiting Gov. JB Pritzker’s signature that’s designed to crack down on undisclosed ownership interests and clarify the difference between management agreements and ownership stakes.
“This statutory language will be an important tool in IDFPR’s enforcement toolbox against large companies which may already have 10 licenses but nonetheless seek to avoid ownership registration by characterizing themselves as service providers rather than owners,” the agency spokesperson says.