Helios Dayspring, a cannabis entrepreneur, was sentenced Friday to 22 months in prison for bribing a public official and filing a false tax return. He said he spent millions transitioning into the legal cannabis market. Please reload the page and try again. Judge Andre Birotte told the parties no one forced him to do it. The court, however, did show some leniency, sentencing Dayspring to five fewer months than the prosecutor had recommended. ) or https:// means youve safely connected to the .gov website. Sign up for Indy Today to receive fresh news from Independent.com, in your inbox, every morning. Federal prosecutors downplayed the value of Daysprings work as an informant, saying it had led to no new investigations or arrests. Subscribe Count One charged federal bribery and Count Two charged that Dayspring intentionally under-reported his business income on his federal tax returns. October 23, 2021. One of Daysprings current lawyers, Sandra Brown, herself a former Central District federal prosecutor, spoke on Daysprings behalf at the sentencing hearing. In October 2021, Dayspring pleaded guilty to one count of bribery and one count of subscribing to a false income tax return. Los Angeles, California 90012. Thu Aug 12, 2021 | 12:01am. Plus, Daysprings 22-month sentence was well below the statutory maximum sentence of 13 years for the two offenses combined. Lock The FBI is still investigating the matter as part of what it calls an ongoing public corruption investigation in San Luis Obispo County.. Dayspring wrote that he learned to fish using a line tethered to a coat hanger, killed birds for food, and learned the value of hard work at an early age. A San Luis Obispo County cannabis grower and dispensary owner bribed the late County Supervisor Adam Hill and attempted to bribe the mayor of Grover Beach, and will plead guilty to federal bribery and tax crimes. There was an error and we couldn't process your subscription. Helios Bobby Dayspring, who owned marijuana farms and dispensaries along the Central Coast, has admitted bribing a San Luis Obispo County supervisor in exchange for votes that favored his business affairs. (Associated Press) Helios Dayspring had one goal: build a cannabis empire that, in his words, would be "too big to fail.". Whoops! At another dinner in Pismo Beach, Dayspring said he picked up the tab and passed Hill an additional $5,000 in cash after they finished eating. The bribes to Hill allegedly began in fall 2016 and continued through November 2019. Helios "Bobby" Dayspring, 35, agreed to plead guilty to one count of bribery and one count of filing a false tax return for failing to report millions of dollars in income to the Internal Revenue . "Bobby Dayspring," 35, was charged in federal court with one count of bribery and one count of subscribing to a false 2018 income tax return that deliberately failed to report millions of dollars in income to the IRS. Suite 1200 Im sorry to hear that, but Im glad that theres some resolution and that we can close the chapter, move on, Compton said. The filing adds that Dayspring and Hill held a political fundraiser at Hills home where $13,000 was raised in June 2019. They told me Im a witness, Peschong told The Tribune. 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 first of his dispensaries opened in Grover Beach in 2018, followed by another in Lemoore in 2020, anda third in Morro Bayin April. DAYSPRING: "It's really important you guys extend the time frame for submission and don't allow other people in yet [as] [t]his affects all the properties that I just got investment into, every one of them. He eventually acquired six grow sites . (Associated Press) Helios . (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. Pay for expert consultation before starting the business, not after paying a bribe to a local official.. By Tony Biasotti Thursday, July 29th, 2021. Gov. 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. 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. A .gov website belongs to an official government organization in the United States. 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 addition, Dayspring was sentenced for underreporting his income to the tune of $9 million to the IRS and shorting the government $3.4 million in tax payments. NHC loses court fight over Orcutt dispensary, founder charged with bribery By Camillia Lanham. Harmon literally got into bed with the criminals and was influenced by the pillow talk. During the meeting, Hill updated Dayspring with a string of text messages, writing that he had to keep these f from going way beyond and it is exhausting! According to CalCoastNews, Dayspring agreed to a "confidential settlement" with William Szymczak, an 83-year-old investor who put more than $17 million into . However, he eventually sought specialized care at a residential health program in July 2020 before his death the following month. "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. SAN LUIS OBISPO - Helios Raphael Dayspring (35), the founder of the Natural Healing Center, a cannabis retailer, has pleaded guilty to bribery and failing to report millions of dollars in income to the Internal Revenue Service (IRS). Dayspring admitted that he had also tried to bribe the mayor of Grover Beach, a small city south of San Luis Obispo, where he was trying to open two marijuana dispensaries. Have a question about Government Services? 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. Bobby Dayspring, 35, was charged in federal court with one count of bribery and one count of subscribing to a false 2018 income tax return that deliberately failed to report millions of dollars in income to the IRS. Keeping sloppy books or two sets of books or no booksor, certainly, not reporting all cannabis income can result in federal criminal tax charges. Business partner 1 told defendant that this meeting was their chance to bribe (Shoals).. The Tribune has reached out to Shoals for comment on Daysprings charges. 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.. A San Luis Obispo County cannabis dispensary founder will plead guilty to bribing late county supervisor Adam Hill in exchange for favorable votes, influence over other government officials and confidential information, federal prosecutors announced Wednesday. 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 . One can suppose existence will be about 10 years, 22 months in prison divided by 120 months overall hmmm sad choice Mr. Mendota. A lock ( 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. Wheres the industry (financial) support for my re-election? Whoops! Helios Dayspring, who also goes by "Bobby," agreed to a plea deal that was filed July . Matthew Ormseth. Defendant wanted to convey to (Shoals) that (Dayspring) and business partner 1 were prepared to pay $100,000 to (Shoals) if ( Shoals) used (his) official position to secure two cannabis dispensary permits for Dayspring and his associate, the filing says. But all that would happen only after the bribery scandal had been exposed. When Shoals returned to the table, Dayspring showed the mayor his cell phone, which had the number 100,000 displayed on the calculator app. Daysprings case provides an important lesson. Success! 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. Powered by WordPress VIP. Federal prosecutors, on Wednesday, July 28, filed criminal information charges against a San Luis Obispo man, Helios Raphael Dayspring, charging him with bribery for paying a San Luis Obispo County supervisor approximately $32,000 - most of that in cash - in exchange for the supervisor's votes and influence on other votes affecting his cannabis business interests. (213) 894-4465. Shoals did not accept the payment. Why make oneself so susceptible to federal prosecution when the better course is to lay low and follow the rules? Thursday, July 29th, 2021. To further his interests in the farms that grew cannabis in San Luis Obispo County, Dayspring began paying bribes to a San Luis Obispo County supervisor in the fall of 2016 and continued doing so through November 2019. Helios Raphael Dayspring, a.k.a. Cannabis business operators need experienced lawyers to guide them. Mrozek said he could not comment on whether Shoals cooperated in the investigation or reported the bribery attempt. The cannabis lawyers are typically not of the same caliber as Big Law regulatory and transactional lawyers or as those formerly part of Big Law who start or join specialty practices (such as tax and land use). A .gov website belongs to an official government organization in the United States. Dayspring said he handed Hill $5,000 in cash outside a restaurant in Avila Beach not long after the vote, according to the plea agreement. Daysprings first court appearance is scheduled for Aug. 25 in Los Angeles. Former Natural Healing Center CEO and Founder Helios Dayspring (PHOTO from The Lemoore Leader) On Wednesday, the Department of Justice revealed that San Luis Obispo resident and Natural Healing Center founder Helios Dayspring plead guilty in federal court to bribery and failing to report millions in income to the IRS. 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. To accomplish that goal, he would not let anything get in his way, including the law.. County and Grover Beach officials on Wednesday reacted to the charges and bribery allegations, although some declined to comment on the situation. The result? SLO Cannabis Grower Bribed Late County Supervisor Adam Hill, Federal Prosecutors Say, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to email a link to a friend (Opens in new window), Helios Dayspring, owner of the Natural Healing Center cannabis dispensary in Grover Beach, has agreed to plead guilty to a charge of bribing late SLO County supervisor Adam Hill for favorable votes on his projects. The mayor did not respond to the offer, and Dayspring did not pay the bribe. The U.S. Attorney's Office in Los Angeles announced bribery and tax evasion charges against Natural Healing Center co-founder and owner Helios Dayspring just days after a Santa Barbara County Superior Court judge denied the cannabis company's petition against the county for the score NHC received . SLO economy hampered by slow growth, economist says, Houweling sued over workers comp claims from Camarillo greenhouse, Santa Barbara cannabis company makes $23.5M acquisition. A locked padlock Do you defend (in state and local courts) individuals charged with cannabis possession and/or distribution? Quinn Brady now works for the Dayspring front organization MOM INC a Delaware Corp in which shareholder information has been kept secret. The Mayor at the time Heidi Harmon seemingly unwittingly helped structure the selection process and criteria to favor Dayspring and his co-conspirators. Are you working at a law firm with 50 or more lawyers with offices in other states? Its not far-fetched to believe that the feds are watching what is happening at a towns city council, board of supervisors, or zoning commission. You're on the list. 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. 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. It passed, 3 to 2, with Hill voting in favor, according to the agreement. 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 Before joining The Times in 2018, he covered city news and state politics at the Hartford Courant. The defendants own words made clear that the money, meals, and gifts of cannabis were in exchange for political action to benefit Dayspring. The mayor did not respond to the offer, and Dayspring did not end up paying the bribe. Dayspring was also ordered to pay almost $3.5 million in back taxes to the IRS from years of unreported cannabis business income. You may occasionally receive promotional content from the Los Angeles Times. 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 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 . Over the past 15 years, Dayspring wrote, he focused all his considerable energy and talent on building a business that was too big to fail.. Helios Raphael Dayspring, founder and former CEO of the Natural Healing Center, has agreed to plead guilty to several felony charges, pay $3.4 million in restitution to the IRS, and cooperate with an ongoing investigation. More dope, free money, entitlements galore at the expense of all those nasty corporations and filthy rich dishonest people, could be what they are thinking? After all, he worked hard to be eligible for a $3.4 million dollar fine? Noozhawk is a founding member of theLocal Independent Online News (LION) Publishers. Everyone else is at home working on their computer doing whatever, selectively answering their messages or in bed asleep until their secret phone rings? Last summer, Dayspring pleaded guilty to one count of bribery and one count of income tax evasion. Many of the Big Law, former federal prosecutors or specialty firm lawyers who advise single state operators, MSOs, and brands in the cannabis industry, are loath to ever refer to themselves as cannabis lawyers. In fact, they tend to chafe at the moniker and affirmatively tell prospective clients, I am not a cannabis lawyer. The lawyer-experts go on to explain that they have expertise in the wide array of laws, regulations and practices affecting the industry and things from their perspectives self-proclaimed cannabis lawyers do not., Brad Sodowick, a professor at Drexel Universitys LeBow School of Business who teaches a course called Cannabis as an Emerging Business has advice for all cannabis operators on this point: Get a former federal prosecutor and/or someone at a big firm or who worked at Big Law and not a solo-shop criminal defense attorney who represents marijuana dealers. Grover Beach City Manager Matthew Bronson said the city needs more information and to do an internal review of the matter before it can be in a position to comment on the situation. Please reload the page and try again. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. Well see what we can do. So, whats the main takeaway for licensed cannabis business operators? Helios Raphael Dayspring, a.k.a. . He represented the 3rd District on the San Luis Obispo County Board of Supervisors, which includes most of the city of San Luis Obispo as well as Avila Beach, Pismo Beach and Grover Beach, from 2008 until his death by suicide in August 2020. If the lawyer answers yes to any single question (1 to 5), the lawyer can be considered for hiring to give a consultation and then, with more questions asked, to be considered as an occasional legal consultant, or even as someone to place on the payroll. This means that even little bits (think ounces not kilos) of product and a few restaurant meals with wine spread out over years can amount to federal bribery. Dayspring allegedly paid the late District 3 supervisor $32,000 in cash and money orders in exchange for beneficial votes on issues related to his farms, including those in favor of legislation that allowed cannabis grows to operate before receiving final permit approvals, the release said. He also cited his work as an informant and his willingness to wear a wire, noting that hed been the recipient of at least one death threat. Director of Media Relations (Joe Johnston / San Luis Obispo Tribune photo), Former Grover Beach Mayor John Shoals was allegedly offered $100,000 in bribes by Helios Dayspring at a dinner in 2017. Big Law, specialty, and/or former federal prosecutors who handle cannabis industry work, as a general rule, intimately know the ins and outs of cannabis licensure and have handled complex cannabis regulatory and/or transactional matters. A plea agreement filed by prosecutors will allow Dayspring to plead guilty to the charges, pay $3.4 million in restitution to the IRS and cooperate in the ongoing investigation. It was because Dayspring acted corruptly by using money, cannabis and free food, to influence a local public office holder. 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. Hill also requested Dayspring take him out to dinner for his birthday, which Dayspring paid for, and was then given another $5,000 in cash. In early 2019, Hill accepted another $5,000 in cash outside an Avila Beach restaurant, the filing says; the supervisor took another $5,000 in cash following a dinner in Pismo Beach that November. He crossed the ethical line. In addition to bribing the San Luis Obispo County supervisor, Dayspring attempted to bribe the then-mayor of Grover Beach in exchange for two dispensary licenses in that city. Three weeks later, Dayspring and his business associates addressed the Board of Supervisors during the public comment period, urging the county to again extend the abeyance. Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case. 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.. That happened here with Dayspring. thom.mrozek@usdoj.gov Trew Knowledge. 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