Through 2018, Dayspring said he gave Hill $5,000 in cash and various cannabis-related products, his agreement says. The owner of a Central Coast cannabis dispensary on Friday pleaded guilty to federal charges related to an investigation into tax evasion and bribery of a former San . Wheres the industry (financial) support for my re-election? Bets are on that Daysprings first lawyerthe one who (according to Dayspring) encouraged the bribes to the county supervisor, would not have been Daysprings lawyer had Dayspring asked the right questions before engaging in the corrupt behavior. Daysprings tax practices should serve as a lesson to those in the cannabis business. At first, these were 5-0 votes, but in 2019 and 2020 the votes were 3-2, with Hill casting a decisive vote. Julie A. Werner-Simon is a former federal prosecutor, former constitutional law fellow, and currently serves as a law professor (adjunct) at University of Southern Californias Gould School of Law, Drexel Universitys Kline School of Law, and is also a legal analyst at Drexels LeBow School of Business. San Luis Obispo County marijuana mogul Helios Dayspring surrendered to the Federal Correctional Institution in Mendota (FCI Mendota) last week to begin a 22 month sentence for bribery and tax . Any member of the public who has information related to this case or any other public corruption matter in San Luis Obispo County is encouraged to send information to the FBIs email tip line at pctips-losangeles@fbi.gov or to contact the FBIs Los Angeles Field Office at (310) 477-6565. "Bobby Dayspring," 36, was sentenced by United States District Judge Andr Birotte Jr. Dayspring has paid the restitution order of $3,438,793 to the IRS in this case. On July 28, 2021, cannabis grower Helios Dayspring was charged with bribing Hill in exchange for favorable votes and influence. Fleet strength of Helios LPG has steadily grown to more than 20 vessels within one year of its launch. Keep up with Noozhawk's daily news coverage, delivered at 4:15 a.m. right to your inbox. Dayspring was sentenced last week after pleading guilty in October 2021 to a two-count federal complaint. The Mayor at the time Heidi Harmon seemingly unwittingly helped structure the selection process and criteria to favor Dayspring and his co-conspirators. The board voted unanimously to grant the abeyance to growers who had registered with the county before the ban went into effect, a decision that benefited Dayspring, his plea agreement says. If I am not deemed complete and get accepted, conditional use permits, I don't get my ownership in the land. During the investigation, the federal authorities acquired the texts between Dayspring and the town supervisor. Cannabis operators, who alreadyat day oneare conducting a business that is federally illegal, cannot afford to engage in conduct that is additionally criminal. It adds insult to injury to add political corruption and failure to pay back taxes to the mix. Everyone else is at home working on their computer doing whatever, selectively answering their messages or in bed asleep until their secret phone rings? Natural Healing Center founder Helios Dayspring has pleaded guilty to bribery and filing a false income tax return. Please reload the page and try again. At an event in October 2016, Dayspring gave Hill three separate $1,000 money orders, which Hill deposited into his personal account. The quid pro quo was clear, according to Daysprings plea agreement. Please reload the page and try again. Resist the temptation to engage in such conduct. Im sorry to hear that, but Im glad that theres some resolution and that we can close the chapter, move on, Compton said. Last summer, Dayspring pleaded guilty to one count of bribery and one count of income tax evasion. That happened here with Dayspring. 312 North Spring Street Calcoast news did great coverage of the shady dealings of Mr Petetit-Wright. Mrozek, the U.S. DOJ spokesman, declined to say whether Shoals cooperated with federal investigators, or whether he ever reported the attempted bribe. During the meal, the filing says, Dayspring showed Shoals his cell phone with the number 100,000 typed out, and said it was for two. The FBI and IRS Criminal Investigation investigated this matter, which is part of an ongoing public corruption investigation in San Luis Obispo County. U.S. Attorney's Office, Central District of California, Environmental Crimes and Community Safety, San Luis Obispo Man Agrees to Plead Guilty to Bribing County Supervisor to Vote on Issues Affecting His Cannabis Businesses, Former FBI Special Agent Sentenced to 6 Years in Prison for Accepting Bribes Paid by Attorney Linked to Organized Crime Figure, Former Los Angeles City Politician Jos Huizar Pleads Guilty to Racketeering Conspiracy and Tax Evasion Charges, Former Top Official in Orange Countys Democratic Party Agrees to Plead Guilty to Attempted Wire Fraud and Admits to Bribery Scheme, San Luis Obispo Man Agrees To Plead Guilty To Bribing County Supervisor To Vote On Issues Affecting His Cannabis Businesses. The attempted $100,000 bribe took place during a dinner meeting in September 2017. The former executive director of the Democratic Party of Orange County has agreed to plead guilty to a felony charge for attempting to defraud one of her political consultancy firms Central District of California Has the lawyer assisted and prepared five separate and unrelated cannabis licensing applications? Natural Healing Centers was founded and owned by Helios Dayspring, . Dayspring said it was for two, meaning two dispensary permits. Dayspring also substantially underreported his personal income on his federal tax returns for the years 2014 through 2018, which resulted in the IRS losing more than $3.4 million in tax revenue. In another message, Dayspring wrote that he had invested in several properties but warned that if he was not deemed complete and didnt receive conditional-use permits, I dont get my ownership in the land., According to the plea agreement, Hill replied: Got it. San Luis Obispo County marijuana mogul Helios Dayspring was sentenced to 22 months in federal prison on Friday afternoon by U.S. District Court Judge Andr Birotte in Los Angeles. The sad truth is there are many customers who want and legally can buy his product. Dayspring, a business partner and the citys mayor, who wasnt identified in the plea agreement, met at a restaurant in Arroyo Grande in 2017. In addition, Hill who once worked for former New Jersey Senator Bill Bradley voted to keep new operations that might compete with Daysprings from gaining a toehold in San Luis Obispo. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. 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Ciaran McEvoy The federal agents dove into Daysprings financial information for a period of years to include years before Daysprings bribery of the local official. Dayspring admitted to paying bribes to then-San Luis Obispo County Supervisor Adam Hill for favorable votes on his cannabis business interests and for deliberately failing to report millions of dollars in income to the IRS. In November 2017, the Board of Supervisors was weighing whether to offer certain growers an exemption, or abeyance, to a moratorium on cultivating marijuana on unincorporated county land. Share sensitive information only on official, secure websites. Daysprings supporters friends, family members, employees, business partners submitted many testimonials on his behalf, painting him as kind, courageous, and generous when it comes to animals and the less fortunate. Success! Secure .gov websites use HTTPS After all, he worked hard to be eligible for a $3.4 million dollar fine? The federal agents got records from a Pismo Beach restaurant where the birthday meal for the supervisor was held. The next day the Board of Supervisors voted 5 to 0 to extend the abeyances. Hill died after taking a leave from the board to seek mental health treatment. (David Middlecamp / San Luis Obispo Tribune photo), Lindsey Holden, Matt Fountain and Kaytlyn Leslie for The San Luis Obispo Tribune, Click here to read more stories from The San Luis Obispo Tribune, Local Independent Online News (LION) Publishers, Proudly powered by Newspack by Automattic. Shoals was one of two city council members on a subcommittee that oversaw cannabis dispensary permits. You're on the list. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); The freshest news in Santa Barbara County. They are: A lawyer who represents those charged with cannabis crimes in state and local courts (to include possession and distribution) and/or who represents defendants charged with non-cannabis related crimes (to include drunk driving and assault) is not often the right lawyer to represent cannabis operators with licensing applications and regulatory matters. According to the court documents, Dayspring owned, operated, and/or had a controlling interest in multiple farms that grew cannabis in San Luis Obispo County. October 23, 2021. Notably, the federal prosecutor on the case was not from the Central Districts Narcotics Division. It was Dayspring who mobilized the residents of his valley into continuous agitation in front of the Santa Barbara County supervisors, demanding relief and action. A former FBI special agent was sentenced today to 72 months in federal prison for conspiring to accept at least $150,000 in cash bribes and other items of value in A Riverside tax preparer pleaded guilty today to federal criminal charges for knowingly filing thousands of tax returns that falsely claimed deductions, such as fake medical expenses and bogus mortgage A Westwood man pleaded today to federal criminal charges for defrauding victims out of more than $5 million by purporting to sell bonds for large-scale construction and other projects, and Central District of California But even though some criminal defense lawyers and family lawyers have cannabis-related law practices, and some refer to themselves as cannabis lawyers, they are not generally equipped to provide quality regulatory and transactional services to the cannabis operator. It is unclear what will happen to his businesses now that Dayspring has been charged. The most important question of the five? Helios Raphael Dayspring, a.k.a. However, he eventually sought specialized care at a residential health program in July 2020 before his death the following month. (Associated Press) Helios Dayspring had one goal: build a cannabis empire that, in his words, would be "too big to fail.". What nailed the coffin shut for Dayspring, in addition to the financial record analysis, was his overuse of the text message function on his iPhone. The IRS agent, often with the help of an IRS revenue analyst, will then comb through a targets bank statements, credit and debit card statements, business records, and federal filings (to include currency transaction reports, CTRs) and compare that information with a targets tax returns. After Dayspring's crimes came to light, the city of San Luis Obispo revoked the permit for a Natural Healing Center . Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to email a link to a friend (Opens in new window), https://www.independent.com/2022/06/01/central-coast-cannabis-kingpin-sentenced-to-22-months-in-bribery-scandal/, The Slow Road to Fresh Air in the Carpinteria Valley, Get a Whiff of This: How Some Carpinterians Learned to Sniff Pot for Science, Carpinteria Pot Wars: A Dutch Clean-Air Technology Gives Residents Some Hope. This means: Do not slip them cash, provide them with free cannabis or with any free meals (big or small). Do you defend (in state and local courts) individuals charged with cannabis possession and/or distribution? Shoals did not accept the payment. An official website of the United States government. On April 6, 2019, Hill texted Dayspring and one of his employees, your industry should give me one giant French kiss wrapped in money after my work today., In another text, Hill asked, Wheres the industry support for my reelection? Helios Dayspring, who also goes by "Bobby," agreed to a plea deal that was filed July . Hill pushed his fellow supervisors to support an extension and moved to add it to the next meetings agenda; the motion failed. Dayspring has agreed to surrender in this case and make his first appearance in United States District Court in Los Angeles on August 25. About a year before Helios Dayspring would plead guilty to felony charges of bribery and tax evasion, an attorney for the cannabis businessman sent an email to San Luis Obispo city officials. But it was not cannabis that put the authorities on the scent. Shoals never responded to the offer, and Dayspring didnt pay the bribe, the release said. (213) 894-6947. In the end, he amassed an empire he valued at $30 million. A Timeline of Cannabis Consumption in the U.S. Canadian Cultivators Say Need For Reform 'Urgent', Agenda Now Live for Cannabis Conferences VIP Cultivation Roundtable, Cannabis Supply Chain Woes: Bridging the Gaps, What the Cannabis Industry Can Learn From Top California Brands. A satellite camp.Sounds cozy.He can easily run the show from there. . Not all lawyers have the skill set to do so. Helios Dayspring had one goal: build a cannabis empire that, in his words, would be "too big to fail." . About Us. If you believe an Independent.com user or any material appearing on Independent.com is copyrighted material used without proper permission, please click here. The toughest option at Birottes discretion was 13 years. Agents also searched a Pismo Beach home and an undisclosed third location on the same day. I love growing it. They told me Im a witness, Peschong told The Tribune. Helios "Bobby" Dayspring, 35, appeared via Zoom before Judge Andre Birotte Jr. in the U.S. District Court for the Central District of California to enter guilty pleas to one count of federal . (David Middlecamp / San Luis Obispo Tribune photo). When the mayor returned to the table, Dayspring had typed 100,000 in the calculator app on his phone and showed it to the mayor, which he said was for two. In his plea agreement, Dayspring said he meant to convey that he was prepared to pay $100,000 for the mayors help in securing two dispensary permits. Their law firms also have the personnel resources (to include support staff) to excel in the morass of licensing and regulatory hurdles. There was an error and we couldn't process your subscription. They were investigating corruption, not cannabis. Dayspring should have talked to the professor first. When Shoals returned to the table, Dayspring showed the mayor his cell phone, which had the number 100,000 displayed on the calculator app. In another over-the-top text exchange, the county official texted that his birthday was around the corner and what was Dayspring going to do for him. Daysprings first court appearance is scheduled for Aug. 25 in Los Angeles. Helios Dayspring, who also goes by Bobby, agreed to a plea deal that was filed July 28 in federal court in Los Angeles and is likely to land him in prison for around 33 months. The first of his dispensaries opened in Grover Beach in 2018, followed by another in Lemoore in 2020, anda third in Morro Bayin April. By 2013, Dayspring was supplying an estimated 30 legal dispensaries in Riverside and San Bernardino counties, his attorney wrote. San Luis Obispos budget includes federal program funds, hence the interest. Dayspring also admitted that he substantially underreported his personal income on his federal tax returns for the years 2014 through 2018, which resulted in the IRS losing more than $3.4 million in tax revenue. Anyone with information about this ongoing cannabis fraud should email compliance@cannabis.ca.gov. They put state and local prosecutors through their paces. Family lawyers (who handle marriage break ups and custody decisions) often do heartbreaking and essential work too. In 2017, Grover Beach began accepting applications for cannabis dispensary permits. Not a good student, he dropped out of high school in the 10th grade. Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case. Helios Dayspring's workers transporting immigrant women to a grow in Tepusquet Canyon in Northern Santa Barbara County. Dayspring did this, his plea agreement states, with the understanding that, as opportunities arose, Hill would vote in favor of permits and legislation benefiting Daysprings cannabis farms and dispensaries; lobby other public officials in support of such legislation; and give Dayspring non-public information regarding cannabis issues before the county government. 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In July, marijuana magnate Helios Dayspring pleaded guilty to bribing a now-deceased San Luis Obispo County supervisor for years in exchange for favorable policy votes. In September 2017, after those permit applications had been submitted Dayspring and one of his business partners had dinner with Shoals at a restaurant in Arroyo Grande. ciaran.mcevoy@usdoj.gov Once he pleads guilty to the bribery and tax charges, Dayspring will face a statutory maximum penalty of 13 years in federal prison. Click here to read Helios Daysprings complete plea agreement. In September 2017, Dayspring, an unnamed business associate and Shoals referred to only as Mayor 1 met at a restaurant in Arroyo Grande. And Eric Powers and Megan Souza are the friendly phoney faces on the criminal organization. Wheres the industry support for my reelection??. Harmon was having a sexual relationship with Quinn Brady, her assistant/campaign manager at the time. The filing adds that Dayspring and Hill held a political fundraiser at Hills home where $13,000 was raised in June 2019. Sign Up Now Cannabis businessperson Helios Dayspring entered formal guilty pleas to federal criminal charges, apparently ending a lengthy corruption saga involving multiple marijuana companies and local California officials.. Thu Aug 12, 2021 | 12:01am. Dayspring, 35, owns cannabis farms in San Luis Obispo County as well as the Natural Healing Center dispensaries in San Luis Obispo, Morro Bay and Grover Beach. Prosecutors often call tax charges, the easy low-hanging fruit because once a targets expenditures are compared with the income reported, if the disparity is extreme the feds are likely have an easy-to-prove tax prosecution. The recommended range for his crimes under federal sentencing guidelines is between 33 and 41 months, and prosecutors have agreed to ask for a sentence at the low end of that range, if Dayspring continues to cooperate with authorities and follow the restrictions of his plea deal. Ortiz-Legg declined to comment, saying she had no personal knowledge of the matter. Mrozek said he could not comment on whether Shoals cooperated in the investigation or reported the bribery attempt. In December 2018, Dayspring and Hill discussed the importance of having (Hill) and other county supervisors approve the continued abeyance on enforcement action and how a lapse in the abeyance would affect his cannabis farms.. U.S. Attorney's Office, Central District of California, Environmental Crimes and Community Safety, San Luis Obispo Man Sentenced to Nearly 2 Years in Federal Prison for Bribing County Supervisor and Filing False Income Tax Returns, Former FBI Special Agent Sentenced to 6 Years in Prison for Accepting Bribes Paid by Attorney Linked to Organized Crime Figure, Riverside County Tax Preparer Pleads Guilty to Knowingly Preparing False Tax Returns that Caused Over $3 Million in Losses to IRS, Westwood Man Pleads Guilty to Federal Charges for Running Surety Bond Scam that Caused $5.2 Million in Investor Losses, San Luis Obispo Man Sentenced To Nearly 2 Years In Federal Prison For Bribing County Supervisor and Filing False Income Tax Returns. Prosecutors charged Helios Raphael Dayspring, 35, of San Luis Obispo with one count of bribery and one count of subscribing to a false 2018 income tax return, when he allegedly deliberately failed . Think of it as a vacation. Lock Officials with the Department of Justice say Helios Raphael Dayspring, 35, has agreed to plead guilty to both felony charges, pay $3.4 million in restitution to the IRS, and cooperate in an . In the agreement, he says he paid Hill $32,000 in under-the-table cash and money orders between 2016 and 2019, along with free cannabis products and meals for the supervisor. It will continue to be a black eye on the County and legal weed industry. It does not matter whether the product being grown or sold is illegal in any regard. Other than referring to Dayspring as a cannabis king who wanted to expand his empire by cheating, there was little mention of cannabis at all. Have a question about Government Services? It was Rybarczyk, at Daysprings in-person federal court sentencing hearing, who honed in on Daysprings actions involving the government official. Dayspring said in his plea agreement that, in exchange for bribes, Hill took official actions that benefited his marijuana ventures, such as voting in favor of exempting certain cultivators from a moratorium on growing marijuana on unincorporated land and opposing a potential ban on outdoor grows. And with the hope that such a payment to the IRS would increase the chances of a lower sentence than the statutory max of 13 years, Daysprings current lawyers advised him to pay in full, which he did before his sentencing. After that, Dayspring allegedly asked his business associate whether they owed Shoals $50,000, prosecutors allege, and the business partner said their proposed deal required that defendant and business partner 1 receive two permits.. Subscribe Suite 1200 A high-profile figure in the Central Coasts marijuana industry has agreed to plead guilty to bribing a San Luis Obispo County supervisor, the first charges to be made public in what a spokesman for the federal prosecutors office in Los Angeles called an ongoing public corruption investigation.. Instead, Dayspring will serve his time in Fresno County at FCI Mendotas minimum security satellite camp. The county approved amoratorium in September 2016 on growing cannabis in unincorporated areas, and Dayspring wanted the county to avoid enforcing that moratorium for existing growers. Once he pleads guilty to the bribery and tax charges, Dayspring will face a statutory . Daysprings case provides an important lesson. (213) 894-4465. Brown attributed some of the blame to Daysprings prior lawyer, as well, for suggesting that Dayspring bribe the county supervisor, advice that Brown described as not just incorrect, but frankly illegal.. Helios Dayspring Owned Hundreds of Acres Throughout Santa Barbara and San Luis Obispo Counties. Any operatoreven one who does not engage in corruption and declares all incomecould still be subject to federal arrest and prosecution just for being in the business.. (Associated Press) By Matthew Ormseth Staff Writer LOS ANGELES A San Luis Obispo man was sentenced today to 22 months in federal prison for paying a county supervisor approximately $32,000 in bribes most of them in cash in exchange for the supervisors votes and influence on other votes affecting his cannabis business interests. The U.S. DOJ says that Dayspring began paying Hill cash, first starting at $1,000, and gave Hill three $1,000 money orders. Cannabis business operators need experienced lawyers to guide them. . Dayspring admitted to underreporting more than $3.4 million on his personal income on his federal tax returns for four . Residents there had been complaining of Daysprings aggressive scofflaw methods large trucks driving back and forth, night lights and night generators blaring forth, illegal grading, creek degradation, and cultivating in excess of permits since 2015. Helios Dayspring, a cannabis entrepreneur, was sentenced Friday to 22 months in prison for bribing a public official and filing a false tax return. In Daysprings case, $29,000 was the amount of money handed to the official and $3,000 was the value of in-kind gifts of food and cannabis provided by Dayspring. The court filing says that beginning in fall of 2016 and continuing until about November 2019, Dayspring paid a sitting county supervisor it does not mention Hill by name approximately $29,000 in unreported cash payments. Hill then solicited more bribes; he was given $3,000 in 2016 and $5,000 in 2017, the filing says. Gavin Newsomappointed Dawn Ortiz-Legg to fill the District 3 seatin November 2020. Los Angeles, California 90012. Dayspring also agreed to pay $3.4 million in restitution the amount he kept from the Internal Revenue Service by underreporting his income and to cooperate with prosecutors and agents from the IRS and FBI who are said to be probing corruption in San Luis Obispo County. , 2021, cannabis grower Helios Dayspring & # x27 ; s workers immigrant! Tax evasion Heidi Harmon seemingly unwittingly helped structure the selection process and criteria to favor Dayspring Hill. The supervisor was held and custody decisions ) often do heartbreaking and essential work.! Want and legally can buy his product from the Central Districts Narcotics Division has guilty. Day the Board to seek mental health treatment, which is part of an public! Last week after pleading guilty in October 2021 to a two-count federal complaint from! Had ownership interests in businesses that sold marijuana to the public, including in Beach! 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