Madison committee revokes Fusion Smoke & Spirits liquor license after investigators find psilocybin and high‑THC products

The Alcohol License Review Committee voted to revoke the liquor license for Fusion Smoke & Spirits on April 9 after hearing evidence that investigators found vacuum‑sealed bags of psilocybin mushrooms and multiple THC products that subsequent lab testing showed contained illegal levels of delta‑9 THC.

The committee’s decision follows testimony from state alcohol agents and Madison police detectives who said the store was the subject of multiple complaints and a follow‑up inspection on Oct. 8, 2025. Special Agent Nicole Zner of the Division of Alcohol Beverages told the committee her team “observed the establishment was open for business” and encountered a sole employee who said he lacked an operator’s license; she said agents saw packaging and displays they believed warranted further criminal investigation and requested MPD assistance.

Detective Adam Kner of the Dane County Narcotics Task Force described photographs and items seized under a criminal search warrant, including vacuum‑sealed bags he said contained psilocybin mushrooms and commercial packaging for THC products. "This appeared to be a drug trafficking operation masquerading as a liquor store," Kner told the committee, describing multiple locations in the store where controlled substances were found and saying he drafted search warrants for both the premises and the owner’s residence.

Kner and other officers described field testing and laboratory confirmation procedures: presumptive tests were performed locally, and suspected marijuana and concentrates were sent to a quantitative testing lab (NMS Labs) to determine delta‑9 THC content. Kner said the lab returned values that were “greater than 5%” delta‑9 THC by weight for samples submitted — well above Wisconsin’s 0.3% threshold that distinguishes hemp from illegal marijuana in many contexts.

Licensee Jacob McRoberts, who was present and testified, said he is the sole proprietor and that he purchases hemp products from a variety of distributors and receives a certificate of analysis (COA) with each shipment. "Each hemp product is delivered with a certificate of analysis," McRoberts said, and he told the committee he had no knowledge of psilocybin being in the store and did not knowingly sell illegal products. He also acknowledged leaving the store for a veterinary emergency while an unlicensed employee, Jerome Lovear, was on duty.

Lovear, an employee who also testified, acknowledged being at the store on multiple occasions and — when questioned by detectives — admitted to having a small quantity of mushrooms on his person or in his backpack at the time of the search. He denied knowing how larger vacuum‑sealed caches arrived at the business.

In closing, the city’s attorney urged the committee to revoke the license, citing the scale of controlled substances found and the presence of unaccounted‑for alcohol and cash as indicators of distribution. The defense argued that McRoberts purchased products through legitimate distributors and relied on COAs; counsel asked the committee to consider the absence of direct evidence that McRoberts himself placed illegal items into the store’s inventory.

After deliberation in closed session, the committee returned to open session and announced its findings. It found by a preponderance of the evidence that Fusion Smoke & Spirits’ premises constituted a public nuisance under the statutory and municipal standards cited by the city, and it voted to revoke the license. The roll calls recorded two "yes" votes and one official "present" vote during the revocation motion. The committee also found that a notice of public nuisance had been issued to the property owner and that the Oct. 8, 2025 inspection disclosed violations; it declined to find, by preponderance, that a January 15, 2026 licensing violation alone warranted separate action.

Votes at a glance: the revocation motion was approved (Alder Figuro Cole: yes; Alder Glenn: yes; Mr. Rusk: present). The committee’s actions follow criminal investigative activity that city and county investigators said remains separate from the licensing proceeding; criminal charges are in process through Dane County authorities.

What happens next: the committee’s recommendation will be recorded in the city’s licensing record and the matter may be appealed or otherwise litigated; criminal prosecutions stemming from the search and lab results are being handled by the Dane County District Attorney’s Office.