Greed And Greenery: Michigan Businessman Pleads Guilty To Bribing Cannabis Regulator

Zinger Key Points
  • Former chair of Michigan’s medical marijuana licensing board was bribed with $68,200 in cash, plus private flights to Canada.
  • PharmaCo obtained a prequalification status for three dispensaries in October 2018.

A Michigan businessman has pleaded guilty to bribing a medical marijuana regulator to approve state dispensary licenses.

What Happened: John Dalaly of West Bloomfield Township was charged along with lobbyists Brian Pierce, Vincent Brown and former Michigan House Speaker Rick Johnson (R).

All four reached plea agreements and cooperated with the Federal Bureau of Investigation (FBI) and U.S. Attorney's Office.

Dalaly confessed that he paid Johnson — then chair of Michigan’s former medical marijuana licensing board. — a sum of $68,200 in cash and benefits, including two private jet flights to Canada, with the hope of expediting the license review process for Dalaly's company, PharmaCo Inc.

Dalaly also paid Johnson's wife, Janice Johnson, $4,000 per month for about a year to be a “consultant," per the Green Market Report.

PharmaCo obtained a prequalification status for three dispensaries in October 2018 and the licenses in April 2019, the last time the board met before disbanding.

Dalaly has agreed to cooperate with federal prosecutors in the probe. His sentencing (10 years in prison and a $250,000 fine) likely won't occur for another three to four months, said U.S. Magistrate Phillip Green.

What's Next: This case is ongoing and more people are expected to be charged.

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