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
Restoring Second Amendment Rights in Michigan
Restoring Your Gun RightsAs of 4/17/24...There is still a second amendment The Second Amendment of the United States Constitution grants citizens the right to bear arms, a fundamental aspect of American freedoms. However, in some cases, just like every other right...
What is corruption? U.S. Supreme Court will hear arguments
What is corruption? U.S. Supreme Court will hear arguments that could impact bribery cases in IllinoisThe high court is reviewing a law that’s popular among federal prosecutors — including those pursuing former Illinois House Speaker Michael J. Madigan.A cash-strapped...
MSP Flint post commander rigging promotion exams says lawsuit
Ex-Flint Michigan State Police post commander sued by trooper following internal probeThe former commander of the Michigan State Police post in Flint is alleged to have been providing answers to promotion exam questions to favored officers, while also engaging in...
Michigan Expungement Law Reaches the 3 Year Mark
April 2024 - Michigan Expungement Law 3 year AnniversaryThree years after the implementation of the “Clean Slate” law, advocates are hailing its significant impact on expanding expungement opportunities in Michigan. On October 13, 2020, Public Act 193 of 2020 was...
Livonia Fentanyl bust is Michigan’s largest ever
Livonia traffic stop leads to largest fentanyl bust in Michigan history, police say Authorities seize 90 pounds of fentanyl in Livonia MichiganAn undercover customer working with police helped them catch a gas station owner from Macomb County who was dealing fentanyl...
Paid surrogacy no longer a crime in Michigan
Paid surrogacy no longer a crime in Michigan after Whitmer signs MI Family Protection Act into lawFor over 30 years, individuals in Michigan who sought to build a family through the assistance of a paid surrogate might have encountered potential legal repercussions,...
Oregon governor signs a bill recriminalizing drug possession
Oregon governor signs a bill recriminalizing drug possession into lawOn April 1, 2024, Oregon Governor Tina Kotek signed House Bill 4002 into law, effectively recriminalizing the possession of small amounts of certain controlled substances. This legislation marks a...
Why Better Made is suing several Michigan marijuana companies
Better Made vs. Cannabis Companies: A Michigan Trademark DisputeSummary Better Made, is embroiled in a legal battle with over a dozen cannabis businesses in the state. The lawsuit, filed in March 2024, centers on allegations of trademark infringement. Better Made...
John Sinclair, the inspiration for Ann Arbor’s Hash Bash, dead at 82
John Sinclair, the poet whose imprisonment for marijuana inspired the start of Ann Arbor’s long-running annual Hash Bash in the 1970s, has died. He was 82.Sinclair's passing occurred on Tuesday, April 2, 2024, at a Detroit hospital, merely four days prior to his...
Is a Verbal Agreement Legal?
Is Oral Legal?Verbal agreements, also called oral contracts, can be legal and enforceable in Michigan, but with some limitations. Here's a breakdown: Generally Enforceable: Michigan law recognizes verbal contracts as valid if they meet the standard elements of a...
