Two lobbyists get prison time for Michigan medical marijuana corruption scheme

Brian Pierce, a former lobbyist who pleaded guilty to participating in a corruption scheme in Michigan's now-defunct medical marijuana licensing agency, was sentenced to 24 months in prison by a federal judge Wednesday in Grand Rapids. Vincent Brown, the other lobbyist to plead guilty in the scheme, was sentenced to 20 months in prison.

Pierce, 43, and Brown, 33, both pleaded guilty to conspiring to commit bribery, after the federal government accused them of providing $42,000 in cash bribes and other benefits to former Michigan House Speaker Rick Johnson during his time as chair of the former Michigan Medical Marihuana Licensing Board from 2017 to 2018. Johnson was sentenced to 55 months in prison in September, and must surrender to court marshals by Dec. 2, court documents indicate. A fourth individual, Oakland County businessman John Dalaly, was also sentenced to 28 months in prison for his role in the scheme.

Mark Totten, prosecuting attorney for the western district of Michigan, said the investigation into the corruption scheme remains ongoing. But Totten's office is being sensitive to the five-year statute of limitations for federal charges, he said, and further charges may be forthcoming.

U.S. District Judge Jane Beckering said Pierce abused his role as a lobbyist, influencing companies seeking approval for medical marijuana licenses to provide bribes.

"You are a poster child of all the harm that can come from public corruption," Beckering told Pierce. She also imposed a $25,000 fine on both men.

Speaking during Brown's sentencing, U.S. Assistant Prosecuting Attorney Clay Stiffler said the corruption scheme, and particularly how it ensnared Brown just as he began a career in lobbying, is an indictment on the lack of transparency in Michigan politics.

"I can't think of a more damning thing about Michigan politics," Stiffler said. "The political situation we've seen in this case is disgusting."

Totten echoed Stiffler, saying lawmakers in Michigan should consider reforms to increase public accountability.

"I'm not a legislator, and I need to stay in my lane, which is prosecution," Totten said. "But I will say it certainly is easier to get away with public corruption when there is not sunlight shined on the process of the money that's exchanged. It makes it a lot easier to get away with."

The 24-month prison term was at the top of the guidelines range for Pierce's sentence, accounting for his cooperation with government prosecutors and not having any prior convictions factored in. Beckering noted that Pierce paid $2,000 to a Detroit stripper to have sex with Johnson as a bribe, which she said made her want to issue a 28-month sentence to match Dalaly's term. Ultimately, Beckering said she didn't want to go above the guidelines range.

"(It's) barely sufficient, but not greater than necessary," Beckering said of the sentence.

During his allocution, Pierce accepted responsibility for participating in the corruption scheme.

"I traded in my moral compass for financial gain," he said. "Choices were made, and each time, they were the wrong ones."

Pierce's attorney, Ben Gonek, declined to talk to reporters following the hearing. In a sentencing memorandum, Gonek had asked Beckering to impose a sentence of one year and one day.

“Mr. Pierce committed a serious violation of federal law that undermines trust in the government. Mr. Pierce immediately cooperated with law enforcement and pled guilty because he knew he was in the wrong and wanted to accept responsibility for his actions," Gonek wrote in the memorandum.

U.S. Assistant Prosecuting Attorney Chris O'Connor noted Pierce's cooperation was substantial, but the five-year statute of limitations has prevented further charges from being issued to date stemming from the medical marijuana corruption probe. Prosecutors had asked for an 18- to 24-month sentence and a $25,000 fine for Pierce. The government also filed a motion for "downward departure" to reduce both Pierce's and Brown's sentencing guidelines in return for their cooperation.

Brown, despite having a guideline range of 24-30 months for his sentence, received a 20-month sentence after Beckering said he had shown adequate remorse for his actions, particularly pointing to Brown leaving the firm where he and Pierce participated in the bribery scheme, Phillip Alan Brown Consulting.

Additionally, Beckering said there was no evidence that Brown participated in or paid for the commercial sex received by Johnson.

"You deserve something below all of them," Beckering said. Prosecutors had asked for Brown to receive a sentence within his guideline range, as Stiffler said such a sentence would deter the public from engaging in corruption schemes.

Still, Beckering levied a prison sentence, something greater than the home confinement asked for by Brown's attorney, Mark Kriger.

"We thought the judge was extremely thoughtful," Kriger told reporters after the hearing. "We were hoping for better but we understand."

Brown declined to speak with reporters.

According to court documents, Johnson accepted $110,200 in bribes, consisting of cash, private flights and other benefits during his time as chair of the Medical Marihuana Licensing Board.

Johnson, a Republican from Osceola, was House speaker from 2001-04. He came under scrutiny in 2017 when former Gov. Rick Snyder named Johnson, who was a registered lobbyist from 2005 until 2016, as chair of the Medical Marihuana Licensing Board.

Gov. Gretchen Whitmer dismantled the board via executive order in 2019, shortly after recreational marijuana was legalized in Michigan by voters in 2018.

Contact Arpan Lobo: alobo@freepress.com. Follow him on X (Twitter) @arpanlobo.

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This article originally appeared on Detroit Free Press: Lobbyists both get prison time for medical marijuana corruption scheme