Former House Speaker among four charged in public corruption scheme

LANSING, Mich. (WILX) - U.S. Attorney for the Western District of Michigan Mark Totten and Special Agent in Charge of the FBI in Michigan James A. Tarasca to announce charges in a public corruption scheme.

Four defendants are Rick Johnson, John Dawood Dalaly, Brian Pierce, and Vincent Brown.

Johnson was a state representative from 1999-2004 and from 2001-2004, served as Speaker of the Michigan House of Representatives. From May 2017 to April 2019, he served as chair of the Michigan Medical Marijuana Licensing Board.

Dalaly operated two businesses, which were not named per DOJ policy of not naming uncharged third parties. One of those companies was registered for the purpose of seeking licenses to operate as a medical marijuana provisioning center. The second was registered for the purpose of exploring the creation of a digital currency platform for marijuana transactions. Dalalay is charged with the payment of bribes.

Lobbyists Pierce and Brown did business as Philip Alan Brown Consulting LLC., and Michigan Growers Consultants LLC. Both lobbied on behalf of businesses seeking operating licenses from the Michigan Medical Marijuana Licensing Board. Those businesses were not named per DOJ policy. Brown and Pierce are charged with conspiracy to commit bribery.

All four defendants have signed a plea agreement and admitted guilt to the charges. Authorities say all four are cooperating with the investigation. The three unnamed businesses involved are referred to as ‘Company A,’ ‘Company B,’ and ‘Company C.’

Totten said Johnson accepted multiple bribes while serving as chair of the Michigan Medical Marijuana Licensing Board. Those bribes exceeded $100,000 in cash payments and other benefits from multiple sources.

“Johnson accepted the bribes corruptly,” Totten said. “He accepted them with the understanding that these bribes were offered to influence him or to reward him for actions he might take. Namely to help the payers of the bribe to obtain licenses.”

Totten said Dalaly gave Johnson at least $68,000 in cash payments and other benefits through his two companies, including paying for private travel from Michigan to Canada on two chartered flights.

“Pierce and Brown bribed Johnson, causing at least $42,000 to flow to Johnson through various entities that they ran,” Totten added. “They made these payments for two corrupt purposes. First to obtain clients and the revenue those clients generated by promoting the access they had to Johnson. Second to influence Johnson to help their marijuana clients obtain licenses.”

Totten said the payments were hidden by having them go to various LLCs Johnson controlled.

“In the end, Johnson would vote in favor of approving the prequalification status and, ultimately, the license for company A and company C. Company B did not ultimately seek a license.”

The four defendants are expected to be arraigned and have plea hearings in the next one to two weeks. Below are the charges, possible penalties, and more information on each defendant.

• Rick Vernon Johnson, 70, of Leroy
  • 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
  • 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
  • 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
  • Charged with Conspiracy to Commit Bribery, a felony offense
  • Punishable by up to 5 years in federal prison and a $250,000 fine.

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