In a continued fall from grace, the former Michigan House Speaker and head of Michigan’s cannabis licensing board Rick Johnson pleaded guilty to bribery on Tuesday to accepting $110,000 in bribes during his position at the state board, dictating the approval of business applications for the emerging medical cannabis industry, AP News reports.
Johnson was the second person to admit criminal wrongdoing, charged alongside three other defendants, John Dalaly, a business owner charged with paying at least $68,200 in bribes to Johnson; and Brian Pierce and Vincent Brown, two lobbyists charged with conspiracy to pass bribes to Johnson. On April 21, Dalaly also pleaded guilty.
Johnson submitted his plea during a 50-minute hearing in Grand Rapids federal court before Magistrate Judge Phillip Green, though aside from answering a series of questions from the judge, didn’t say much more. He was not asked to explain his motive, and Johnson and his lawyer Nick Dondzila declined to comment further outside the court.
Mark Totten, U.S. attorney for the Western District for the Western District of Michigan, told reporters after the hearing that the investigation is ongoing, meaning that future charges may or may not be brought up moving forward.
“But what I can say is that the investigation and prosecution of public corruption is a priority for our office. We will follow it wherever we find it,” Totten said.
Johnson acted as chairman of the Michigan cannabis board for two years until spring 2019. Gov. Gretch Whitmer proceeded to abolish the medical cannabis board after taking office in 2019 and put oversight inside a state agency.
The board reviewed and approved applications for businesses to grow and sell cannabis for medical purposes. Totten previously said that Johnson was “at the heart of this corrupt scheme,” sharing cash payments and additional perks, like private chartered flights through Dalaly’s company. The investigation first began in 2017, led by the FBI.
Dalaly operated a company that sought a medical license from the board, while Pierce and Brown lobbied on behalf of another company seeking a license. Court documents allege that Johnson voted in favor of these companies obtaining licenses and that he provided “valuable non-public information about the anticipated rules.”
Totten said that Pierce and Brown proceeded to hide payments to Johnson, funneling them through companies controlled by Johnson. According to court documents, payments came out of their client retainer fees.
Brown spoke to federal agents in 2020 voluntarily before he had a lawyer, at the time telling the Associated Press, “I only fight cases that I can win at trial or the government gives me no choice, the offer is so bad. We’re not going to fight this.”
Following the announcement of the charges, all of the defendants signed plea deals admitting their guilt.
“[The cannabis industry has] been held out as an equalizing opportunity,” Totten said at the time. “Yet what we’ve learned today is that one of its key leaders … acted corruptly and did so at a moment that mattered most for those who want to get ahead in this industry.”
Johnson and Dalaly up to 10 years in federal prison and a fine of up to $250,000; Johnson was released Tuesday on an unsecured bond of $25,000. Johnson also agreed to forfeit the $110,000 in bribes as part of his plea deal, and the U.S. Attorney’s Office agreed not to oppose his request for a reduction in offense level, which would impact his sentence. Pierce and Brown face a maximum of five years in prison and a fine of $250,000.
The four defendants previously pledged to cooperate with the ongoing investigation, and any members of the public with information related to the charaged are asked to contact the FBI.
