GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten today announced that John Dawood Dalaly, 71, of West Bloomfield, Michigan, was sentenced to serve 28 months in federal prison and fined $25,000 for paying bribes to Rick Vernon Johnson, the former Chairperson of the Michigan Medical Marijuana Licensing Board. Following his release from prison, Dalaly will serve two years on supervised release. The sentence was imposed by U.S. District Court Judge Jane Beckering.
“John Dalaly bribed a public official. He corrupted a process designed to give people a fair shot at entering this promising new market,” said U.S. Attorney Mark Totten “Now, he’ll serve time in a federal prison. Public corruption is a poison to our democracy, and we will hold offenders accountable whenever and wherever we find them.”
Rick Johnson was a member and the Chairperson of the Michigan Medical Marijuana Licensing Board (MMLB) between May 2017 and April 2019. Prior to his appointment to that Board, Johnson worked as a lobbyist in Lansing, Michigan, and served as Speaker of the Michigan House of Representatives.
John Dalaly operated two companies that were formed with the purpose of obtaining various operating licenses from the MMLB or exploring the licensing of a digital currency platform for medical marijuana financial transactions. Dalaly admitted paying at least $68,200 in cash and other benefits (including private charter flights) to Johnson while he served as the Chair of the MMLB. In return, Johnson voted in favor of approving the prequalification status for one of Dalaly’s companies and voted in favor of granting medical marijuana licenses to that company. Johnson also provided valuable non-public information about the anticipated rules and operation of the MMLB and assistance with license application matters to Dalaly and others who paid him money.
“The corrupt activities uncovered in this case were facilitated by men whose desire for favorable treatment outweighed notions of integrity and fair play,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “Public corruption is the FBI’s top criminal investigative priority and anyone who seeks to influence public officials through bribery will be thoroughly investigated.”
Rick Johnson’s sentencing for accepting bribes is scheduled for Thursday, September 28, 2023, at 1:30 p.m. in Grand Rapids before U.S. District Judge Jane Beckering. U.S. Attorney Mark Totten is scheduled to attend Johnson’s sentencing hearing and provide comments outside immediately following.
On Wednesday, October 18, 2023, sentencing hearings have been scheduled for Brian Pierce at 11 a.m. and Vince Brown at 1:30 p.m. in Grand Rapids before U.S. District Judge Jane Beckering.
Assistant United States Attorneys Christopher O’Connor and Clay Stiffler are prosecuting the case on behalf of the United States.
More Posts
Divorce in Michigan
Divorce can be a complex and emotionally challenging process, and understanding the legal aspects specific to your state is crucial. Whether you are considering filing for divorce or are in the midst of one, having a clear understanding of the laws and procedures in...
UN opposes marijuana legalization in the US
The United Nations (UN) has long been a vocal opponent of drug use and trafficking, issuing various international drug control conventions that aim to prevent the spread of drug abuse worldwide. Recently, the UN has expressed concern about the growing trend of...
Steps to Expunge Your Record in Michigan
You're not the same person you were when you were younger. You're not the same person you were when you were younger. Your life, your goals, your friends and you have changed. Yet you have this weight on your shoulders of your past. A lot of it was probably over...
Get Trained on Michigan’s New Breathalyzer Test Machine
When: May 5 & 6, 2023 from 9:00 a.m. Friday through 5:00 p.m. Saturday Where: In Person Seminar at The Hilton Garden Inn, Downtown Detroit Register here: TICKETS Did you know that the MSP is rolling out a new breath test system during 2023? Learn about the...
Cannabis Possession – From a Possible Life Sentence to 2 Years Probation
We defended our client Michael Thue who was facing a possible life sentence for the following charges in Grand Traverse Court. 1. CONTROL SUBSTANCEDEL/MANU 5-45 KILGRAM2. POSSESSION SCHEDULE 5 AND LSD 02/14/20233. HABITUAL OFFEN-SUP WAR/4 CONV 02/14/20234. CONT...
Disturbing the Peace – Laws and Penalties in Michigan
What are the laws and penalties of disturbing the peace in Michigan? Have you ever been in a situation where someone's behavior was so disruptive that it made you feel uncomfortable or unsafe? Maybe it was someone yelling loudly in public, creating a disturbance at a...
Cannabis companies will progress despite surge in receiverships
Marijuana sales in Michigan hit record highs last year, with organizations profiting more than $221 million in the period of December 2022 alone as per a state report. Yet, as the developing industry keeps on evolving, a few organizations are starting to fall behind....
Cannabis Regulatory Agency – 2023 Feb Disciplinary Rpt
March 9, 2023 – Administrative formal complaints and disciplinary actions taken against adult-use/medical licensees in February are now available for review in the Cannabis Regulatory Agency’s Feb 2023 Disciplinary Action Report. Detroit - Utopia Gardens, LLC for...
Skymint Hit with Lawsuit-Company in Receivership
Dimondale-based cannabis company Green Peak Industries, which operates under the brand name Skymint, has been placed under the control of a receiver after a lender sued the company claiming it owes them more than $127 million. The March 3 lawsuit, which also names...
Don’t Let Your Record Hold You Back: How to Expunge your Conviction in Michigan
You don't have to wander alone wondering about your record holding you back. Get it expunged before the laws change...again. If you have a criminal record in Michigan, it can be challenging to move on with your life. A conviction can significantly limit your...
