Ex-MI House Speaker, 3 Others Plead Guilty In Marijuana Bribery Scandal

MICHIGAN — Former Michigan House Speaker Rick Johnson and three others pleaded guilty in a years-long marijuana bribery scandal, federal officials announced Thursday.

Rick Vernon Johnson, 70, of Leroy was charged with accepting a bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.

John Dawood Dalaly, 70, of West Bloomfield was charged with payment of a bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.

Brian Dennis Pierce, 45, of Midland was charged with conspiracy to commit bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.

Vincent Tyler Brown, 32, of Royal Oak was charged with conspiracy to commit bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.

Johnson agreed to repay $110,200 prosecutors said he accepted in bribes. Plea hearings for the four men were expected within the next few weeks. It was unclear if prosecutors were seeking charges against anyone else in connection to the scandal.

"Public corruption is a poison to any democracy. Those who wield the power of state have a sacred obligation to serve the people they represent. But when a government official takes a bribe, they spurn that solemn duty – in favor of the connected, the crooked, and ultimately themselves," U.S. Attorney Mark Totten said. "Now and always, my office will place the highest priority on rooting out public corruption, with independence and impartiality."

Johnson served as speaker of the state House of Representatives from 2001 through 2004 as a Republican. He was also chairperson of Michigan’s now defunct Medical Marijuana Licensing Board, which oversaw granting or denying licenses in the marijuana industry from May 2017 through April 2019.

As head of the board, Johnson accepted more than $100,000 in bribes in exchange for licenses and "valuable non-public information" from people who were looking to launch marijuana facilities in 2017 through early 2019, federal officials said.

Dalaly, an Oakland County businessman, was also named in the scandal, as federal officials said he gave Johnson at least $68,000 in cash payments and other benefits to Johnson, including two private chartered flights from Michigan to Canada on a Learjet 35 and King Air 200 aircraft, while Dalaly's company was seeking a license from Johnson's board.

Two lobbyists, Brian Pierce, 45, of Midland and Vincent Brown, 32, of Royal Oak were also named in the scandal as federal officials said they caused at least $42,000 in cash payments and other benefits to be given to Johnson.

Federal officials said Pierce and Brown transferred "client payments" from companies they controlled to businesses set up by Johnson, including JBJ Ranch, LLC, VM Enterprises, LLC and Common Cents Harvest Farms, LLC.

Brown and Pierce made the payments to Johnson "to influence and reward him for providing assistance" with their clients' applications for medical marijuana licenses, officials said.

Federal officials noted that all four men are cooperating with the FBI and the U.S. Attorney’s Office as part of the investigation.

"It is always a sad day when someone who enjoys the trust of the people abuses that trust for his or her personal gain," Special Agent in Charge of the FBI in Michigan James A. Tarasca said. "Public corruption is a top investigative priority for the FBI and today’s charges represent our continued commitment to working with the United States Attorney’s Office to ensure residents receive the fair and honest government to which they are entitled."