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
Michigan Forfeiture and Seizure under MCL 333.7522
333.7523 Seizure under MCL 333.7522; forfeiture proceedings; procedure; property subject to section or to order and judgment of court; powers of seizing agency; determining title to forfeited real property; forfeiture of real property encumbered by bona fide security...
Conspiracy is a Crime
In Michigan, conspiracy is a crime that is defined as "the agreement between two or more persons to commit any crime." The crime of conspiracy could be considered complete even if the actual crime is never committed. Conspiracy is a felony in Michigan, and the...
US Cannabis Industry-Just Another Sinking Ship?
Is the cannabis industry just another sinking ship in the US? This story was picked up out in the cannabis news world. Read it for yourself. Have the end times have begun for US weed companies as the first South American imports are approved by the DEA. The US Federal...
Michigan Forfeiture
Property that can be forfeited: Under Michigan law, the following property can be forfeited: Cash Vehicles Real estate Boats Aircraft Other personal property Crimes that can lead to forfeiture: Property can be forfeited if it is used or derived from a crime, or if it...
Marijuana, Mushrooms, a Gun and a Bad Search – Case Dismissed
Summary Client resident searched without warrant Client property seized Client charged We filed motion for bad search Judge agreed Prosecutor filed motion against our motion Judge disagreed Case dismissed That's why you hire Komorn Law More Details The court ruled to...
CRA News Releases January 2023 thru May 2023
CRA Takes Disciplinary Action Against Licensees May 18, 2023 CRA Takes Disciplinary Action Against Licensees in Iron Mountain, Grand Rapids, Gaylord, Bangor, Chesaning, Rogers City, Lowell, Manistee, Bay City, Detroit, LeRoy, Lansing, and Flint April 11, 2023 Cannabis...
Charged with DUI from Cannabis and this Ends up on the Report
So you got pulled over and charged with DUI from Cannabis use and this ends up on the report 11-Nor-9-carboxy-Δ9-tetrahydrocannabinol (11-COOH-THC or THC-COOH) as part of the test results. What is it?? Here's what they say...
Judge blocks media access to Michigan marijuana hearings
Michigan’s largest-ever marijuana recall is at the center of a court matter that the public is forbidden from attending. The case focuses on Cannabis Regulatory Agency accusations that Viridis Laboratories, one of the largest marijuana safety testing labs in the...
The Marijuana Industry Paid an Extra $1.8 Billion in Federal Taxes Because of the 280E Tax Code
News from the internet Why legalize cannabis when 280E is the gift that keeps on giving to the Federal government? Whitney Economics, a cannabis research firm, recently conducted a comprehensive analysis of the impact of federal taxes on the cannabis industry. The...
DUI in Michigan
DUI in MichiganDriving under the influence (DUI) is a serious offense in Michigan that can result in severe legal consequences. Michigan DUI laws and penalties are designed to prevent impaired driving and keep the roads safe for everyone. From fines and license...
