Federal Prosecutors Move to Seize Rick Johnson's Property Over Bribery Debts

September 17th, 2024 Legal & Crime
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Federal prosecutors are aiming to seize 40 acres of hunting property owned by former Michigan House Speaker Rick Johnson to settle a debt arising from his involvement in a significant bribery scheme. Johnson, who accepted more than $110,000 in bribes, was found to have manipulated the state's cannabis industry licensing process for personal gain.

On Tuesday, the U.S. Attorney's Office in Grand Rapids submitted a request to have Johnson's land in LeRoy, Michigan, approximately 15 miles south of Cadillac, forfeited to the government. This move comes after Johnson failed to pay a $110,200 judgment related to the most substantial public corruption scandal in Michigan's capital in three decades.

This legal action coincides with efforts by prosecutors to keep Johnson incarcerated. Johnson has petitioned U.S. District Judge Jane Beckering for a compassionate release, citing health issues. However, Johnson has only served less than 20% of his 55-month sentence and is not due for release until July 2027. Prosecutors have countered Johnson's request, arguing that he is healthy enough to walk up to eight miles daily at a minimum-security federal prison in Duluth, Minnesota.

"Johnson should serve his entire custodial sentence as punishment for his crime and to send a strong deterrent message to all public officials that bribery results in a meaningful deprivation of liberty," wrote Assistant U.S. Attorney Christopher O'Connor in opposition to Johnson's release. "The rule of law demands it."

At sentencing, Judge Beckering described Johnson's actions as an "unfettered abuse of power," stating that he exploited his official position for personal enrichment, including cash payments, free meals, and sexual favors. Court documents revealed Johnson had numerous encounters with a sex worker who referred to him as "Batman."

Johnson, along with three other individuals—cannabis industry lobbyist Vince Brown, Oakland County businessman John Dawood Dalaly, and Lansing lobbyist Brian Pierce—were convicted in connection with this bribery scheme. Johnson was implicated in accepting bribes while heading a state board responsible for determining which businesses would gain early entry into Michigan's burgeoning medical cannabis market.

In addition to his prison sentence, Johnson was ordered to forfeit the value of the bribes he received. "Despite due diligence, the government has been unable to locate the $110,200 in illicit proceeds received by [Johnson] to satisfy the money judgment," Assistant U.S. Attorney Daniel McGraw wrote in the recent filing.

However, investigators have identified a 40-acre parcel of land in LeRoy owned by Johnson through a limited liability corporation, Common Cents Harvest Farms. This land is situated about nine miles from Johnson's farm in LeRoy. Authorities discovered this property as Johnson was nearing sentencing last year. Deputy U.S. Marshal Jesse Lake found that Johnson had acquired the property in December 2009 via a land contract with Greenstone Farm Credit Services, which had taken possession of the land for $32,500 through a sheriff's deed a year earlier. Currently, the undeveloped land is valued at $124,000, according to Osceola County property records.

The investigation revealed that Johnson's wife, Jan Johnson, had attempted to sell the property to satisfy the money judgment, but was unsuccessful. Given the property's estimated value, prosecutors believe that forfeiting the land could potentially cover the entire amount owed by Johnson.

Jan Johnson did not immediately respond to a request for comment on Tuesday.

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