John Dalaly, a one-time marijuana business owner caught in a bribery scheme involving former Michigan House Speaker Rick Johnson, pleaded guilty Friday in federal court.
Dalaly admitted to paying Johnson about $68,200 in the form of cash and gifts as he sought a license for his medical marijuana business in 2018. Johnson was chair of the now-defunct board that granted licenses to medical marijuana businesses. Gov. Gretchen Whitmer disbanded the body in 2019. Johnson was House Speaker from 2001 through 2004.
Read more: Ex-Michigan House speaker, 3 others to plead guilty in marijuana bribery probe
Dalaly is the first of four to formally enter a guilty plea in court. Johnson and two other lobbyists named in the scheme, Tyler Brown and Brian Pierce, face arraignment in the coming week, but have signed plea agreements with the U.S. Attorney’s Office, which leads the multi-year probe.
Dalaly’s agreement stated the bribes included two private chartered flights from Michigan to Canada on a Learjet 35 and King Air 200 aircraft – by way of two companies he operated. One of the companies was a dispensary, while the other was established to be a “digital currency platform for marijuana transactions” in Michigan. Dalaly was charged with paying a bribe, which carries a maximum of 10 years in prison.
He told Magistrate Judge Phillip Green a few additional details that hadn’t been provided in the prior plea agreement.
Read more: Read filings describing bribery scheme involving ex-Michigan House speaker
Dalaly said Johnson “recommended that we use his wife, Jan Johnson, as a consultant,” and proceeded to pay her $4,000 a month. Johnson’s wife, according to the plea agreement Johnson signed, will not be prosecuted as a condition of his plea.
He also said Johnson “asked for a loan, I have gave him a loan,” and he provided travel in chartered private jets and meals to Johnson.
Green asked Dalaly if the the payments were used to influence the business application process and an if application was ultimately granted as a result of the bribes. Dalaly said yes. The name of the company Dalaly used to secure the license remains unnamed.
In advance of sentencing Dalaly, who is 70, was released on a $25,000 unsecured bond after surrendering his passport and being ordered not to leave the state.
Dalaly has no criminal record and told the court he has been taking medication for depression and anxiety. A one-time successful businessman in the lucrative medical marijuana industry, Dalaly has been ordered by the court not to consume the drug, which remains illegal at the federal level.
This is a developing story and will be updated.
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