Oakland County businessman gets 28 months in prison for medical marijuana corruption scheme
John Dalaly, an Oakland County businessman who pleaded guilty to a corruption charge for paying thousands in bribes to the former head of Michigan's medical marijuana licensing board, will spend 28 months in federal prison after being sentenced by a judge Thursday in Grand Rapids.
Dalaly, 71, previously admitted to paying $68,200 in bribes, including cash payments and private jet travel, to Rick Johnson during Johnson's time as the chair of the Michigan Medical Marihuana Licensing Agency. Johnson, who was speaker of the Michigan House of Representatives from 2001 to 2004, received the bribes to expedite the licensing process for Dalaly's applications for medical marijuana dispensaries in 2018 and 2019, Dalaly previously said in court. Johnson pleaded guilty to federal corruption charges for accepting more than $110,000 in bribes, total.
Dalaly's attorney, Raymond Cassar, asked U.S. District Judge Jane Beckering to consider Dalaly's age, cooperation with federal prosecutors, and lack of criminal history when issuing a sentence. Beckering, however, said the "upside of not being caught would be tremendous" referring to the bribery scheme Dalaly and three others have been charged in.
"It must be made known to the public that bribing a public official is unacceptable in the United States of America," Beckering said. Dalaly was also fined $25,000, and was given the opportunity to turn himself in at a date determined by the U.S. Marshals Service. Beckering will recommend Dalaly serve his sentence at a prison in Morgantown, West Virginia, something requested by Cassar.
The average sentence duration for federal corruption charges are 23 months in prison, according to a report published by the U.S. Sentencing Commission.
Michigan's Medical Marihuana Licensing Board was in place from 2016 to 2019 and was abolished after recreational marijuana was legalized in Michigan. The agency was tasked with reviewing and approving medical marijuana businesses for licenses to operate in Michigan. Johnson was installed as chair by former Gov. Rick Snyder.
During the hearing, Dalaly issued an emotional statement to the judge, saying he was "ashamed, hurt and remorseful," for participating in the bribery scheme.
"The hurt, the pain and the shame I have brought to my family and others is beyond (explanation)," Dalaly said.
At an earlier court hearing, Dalaly also admitted to sending Rick Johnson's wife, $4,000 a month in consulting fees, something he characterized as Johnson's idea. Johnson's wife has not been charged in the corruption probe as part of Johnson's plea agreement.
"I think Mr. Johnson's wife should have been charged," Cassar told reporters following the hearing. "... She was the conduit for all these payments, she knew what was going on."
U.S. Attorney for the Western District of Michigan Mark Totten previously said the investigation into the corruption scheme remained open and additional charges are possible.
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After Dalaly cooperated with federal investigators, prosecutors agreed to file a motion for "downward departure" asking the court to reduce Dalaly's sentencing guidelines. Dalaly was facing a maximum sentence of 10 years in prison and a fine of up to $250,000. In a brief filed earlier this month, prosecutors recommended a sentence of 30 to 37 months, and described Dalaly's cooperation as "substantial."
"During the proffers, he admitted his role in, and implicated others involved in, the bribery offense and provided details of the offense previously unknown to the government," prosecutors wrote. "... In the government’s view, Dalaly’s proffered statements about the offense conduct were materially consistent and he has taken responsibility for his role in the offense."
Like Dalaly, the three others charged in the corruption probe to date — Johnson and lobbyists Vincent Brown and Brian Pierce, have pleaded guilty. Johnson is scheduled to be sentenced Sept. 28 for accepting more than $100,000 in bribes during his tenure as chair of the licensing board. Brown and Pierce, who've both pleaded guilty to conspiring to commit bribery, will be sentenced Oct. 18.
Contact Arpan Lobo: alobo@freepress.com. Follow him on X (Twitter) @arpanlobo.
This article originally appeared on Detroit Free Press: John Dalaly sentenced in medical marijuana bribery case
