The horsepower you suggest is clearly a typo - 3.5 hp from a 150 cc engine is more likely.
Two things should happen when you release the leaver to shut it down - a mechanical brake on the flywheel - and the operation of the kill switch to shut off the ignition (spark).
It seems from what you say that the cable that runs from the lever to the engine is not operating properly - you might do well to examine each end of it to see why it's stuck in the operate position.
Good Luck..., September 2016