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A businessman pleaded guilty Friday to bribing the head of a Michigan marijuana licensing board, the first conviction in a federal investigation into payoffs and other benefits before the panel was disbanded in 2019.
John Dalaly appeared in federal court in Grand Rapids, two weeks after his plea deal was announced.
Dalaly said he provided at least $68,200 in cash and other benefits to Rick Johnson, including two private flights to Canada.
FORMER HEAD OF MICHIGAN MEDICAL MARIJUANA LICENSING BOARD PLEADS GUILTY TO ACCEPTING BRIBES
Johnson, 70, was chairman of the marijuana board for two years. The board reviewed and approved applications to grow and sell marijuana for medical purposes.
Dalaly had a stake in a company that was seeking a license, defense attorney Ray Cassar said.
Michigan businessman John Dalaly admitted Friday to paying off marijuana regulatory board chairman Rick Johnson (pictured) with nearly $70,000 cash and two private flights to Canada. Johnson and Dalaly are among those entangled in a major federal corruption case. (Dale G Young/Detroit News via AP, File)
"As soon as the investigation launched, he was on board to accept responsibility," Cassar told The Associated Press. "This is a good man, 71 years old. Unfortunately he fell into this mess."
Johnson had also recommended that Dalaly hire Johnson’s wife as a consultant to help with his application, Cassar said.
MARIJUANA LEGALIZATION IN ILLINOIS, MICHIGAN COULD TRIGGER INTERSTATE TANGLING
Johnson, a Republican, is scheduled to plead guilty to bribery next Tuesday. He was a powerful lawmaker years ago, serving as House speaker from 2001 through 2004.
Two lobbyists are also due in court next week. Brian Pierce and Vincent Brown have agreed to plead guilty to conspiring to pass bribes to Johnson. All four men are cooperating with investigators, which could help them at sentencing.
Gov. Gretchen Whitmer abolished the medical marijuana board a few months after taking office in 2019 and put oversight of the industry inside a state agency.
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Michigan voters legalized marijuana for medical purposes in 2008. A decade later, voters approved the recreational use of marijuana.
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