Felony Charges Dropped Against Owner of Galveston Smoke Shop Hazy Daze

Felony charges against the owner of the Galveston smoke shop franchise Hazy Daze were dismissed Friday “in the interest of justice.” According to court records, the state may refile the charges later.

Ivy Lopez

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Ivy Lopez

Published 

Mar 11, 2026

Felony Charges Dropped Against Owner of Galveston Smoke Shop Hazy Daze

On Friday, prosecutors unexpectedly dismissed felony charges against the owner of the Galveston smoke shop franchise, Hazy Daze, an important step in a high-profile case that emerged after a major law enforcement raid on the island last year.

Galveston County court records reveal that Shlomi Wolraich was confronted with two first-degree felony charges, including money laundering exceeding $300,000 and involvement in organized criminal activity. On Friday, the Galveston County District Attorney’s Office submitted a motion to dismiss both charges, stating that the action was taken “in the interest of justice.”

In a recent ruling, Judge Patricia Grady approved the request in the 212th District Court of the county, resulting in the dismissal of the cases without prejudice. The legal designation allows prosecutors the option to refile the charges at a later date if they decide to do so.

Hours following a pretrial hearing, the dismissals took place. A jury trial in the case is set to commence on March 13.

The District Attorney’s Office has refrained from providing further details regarding the decision. Officials announced on Monday that, due to ongoing related cases, the District Attorney’s Office is unable to provide comments at this time.

Wolraich's legal representation features prominent Houston attorney Rusty Hardin, who became involved in the case in May of last year. Hardin has served as legal counsel for several celebrities, including former Houston Rockets head coach Rudy Tomjanovich and renowned baseball pitcher Roger Clemens.

The Galveston County Sheriff’s Office Organized Crime Task Force conducted an eight-month investigation that resulted in the case. On March 28 of the previous year, law enforcement officials conducted raids at three Hazy Daze locations on the island, resulting in the arrest of five individuals and the confiscation of approximately $1.6 million in assets.

An affidavit related to the investigation reveals that undercover officers conducted multiple purchases of illegal substances from the shop prior to the raid. Authorities have claimed that the store promoted and sold items containing tryptamine, a psychedelic substance linked to what are commonly referred to as magic mushrooms.

According to the Texas Controlled Substances Act, derivatives of tryptamine, such as psilocybin and psilocin, fall under the classification of Penalty Group 2 substances. Possession of controlled substances can result in a range of penalties, which may include state jail time or charges classified as first-degree felonies, depending on the quantity involved. The category encompasses substances including MDMA (3,4-methylenedioxymethamphetamine), synthetic THC (tetrahydrocannabinol), and PCP (phencyclidine).

The affidavit reveals that the investigation uncovered purchases, including the Tre House Micro Dose Magic Mushroom Vape Pen and Trippy Hills Thick Mintz.

The ongoing legal dispute has significantly impacted the Hazy Daze brand. The company has officially stepped back from its title-level sponsorship of last year's La Izquierda Surf & Music Festival. Following the recent raid, two of the three Galveston locations have either closed or changed ownership. Meanwhile, the Strand location continues to operate but has removed signage bearing the Hazy Daze name.

Chron has reached out to Hardin’s office as well as the Galveston County Sheriff’s Office for further comment.

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