Previous posts here and here discussed the marijuana industry and bribery – both in terms of the Foreign Corrupt Practices Act and domestic (U.S.) bribery.
The later post highlighted an FBI release which stated: “As an increasing number of states change their marijuana legislation, the FBI is seeing a public corruption threat emerge in the expanding cannabis industry. States require licenses to grow and sell the drug—opening the possibility for public officials to become susceptible to bribes in exchange for those licenses.”
As highlighted in this article:
“Federal prosecutors … charged former Michigan House Speaker Rick V. Johnson with pocketing bribes from the state’s marijuana industry in exchange for licenses from the medical marijuana agency he chaired — part of a scheme that prosecutors said allowed corrupt companies to unfairly get ahead during the early years of Michigan’s marijuana gold rush.”
As alleged in the charging document:
“A medical marijuana license issued by the Medical Marijuana Licensing Board ….would allow a business to grow, process, test, transport, or sell marijuana in the State of Michigan in compliance with state law in what was a new and highly lucrative market.
Johnson, while a member and Chair of the Medical Marijuana Licensing Board, provided value non-public information about the anticipated rules and operation of the Board and assistance with license application matters to representatives of [various companies].”
According to the charging document, Johnson received “approximately $110,200 in cash and benefits, intending to be influenced and rewarded in connection with a business, transaction, and series of transactions of the Michigan Medical Marijuana Licensing Board.”
In addition to Johnson (who was charged with accepting a bribe), three other individuals were charged with payment of a bribe or conspiracy to commit bribery. All four defendants pleaded guilty.
In this release, U.S. Attorney Mark Totten (W.D. Michigan) stated:
“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. Now and always, my office will place the highest priority on rooting out public corruption, with independence and impartiality.”
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