In July this year Dayspring spelled out how he conspired with Megan Souza, Eric Powers, and Nick Andre in NHC SLO LLC vs City of SLO (case #21CV-0734) to fraudulently obtain all three SLO City cannabis store permits. (Associated Press) By Matthew Ormseth Staff Writer A locked padlock (213) 894-4465. Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case. Federal prosecutors downplayed the value of Daysprings work as an informant, saying it had led to no new investigations or arrests. The city later awarded Dayspring a single permit. Natural Healing Centers was founded and owned by Helios Dayspring, . There are also questions that can weed out the wrong lawyer for the cannabis operator. 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. Helios "Bobby" Dayspring, 35, who owns marijuana farms and dispensaries up and down the Central Coast, will plead guilty to one count each of federal programs bribery and filing a false tax . At one point, Hill texted Dayspring that he had to keep these fs (other county supervisors) from going way beyond and it is exhausting! Whoops! Count One charged federal bribery and Count Two charged that Dayspring intentionally under-reported his business income on his federal tax returns. There, townspeople run into each other more frequently and have more daily opportunities to interact with the local level officials who are making licensing and zoning decisions. Daysprings lawyer, Sandra Brown-Bodner, said her client has fully accepted responsibility for his actions, has been cooperating and will continue to cooperate with the government. He is scheduled to appear in court on Aug. 25, having signed his plea agreement late last month. Helios Raphael Dayspring, a.k.a. The U.S. DOJ says that Dayspring began paying Hill cash, first starting at $1,000, and gave Hill three $1,000 money orders. 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. The issues involved are complex and the profits are huge. The Tribune has reached out to Shoals for comment on Daysprings charges. The toughest option at Birottes discretion was 13 years. According to federal prosecutors, from fall 2016 to 2019, Dayspring paid the . Have you assisted five or more individuals or entities (in separate and unrelated matters) with preparing and submitting to government authorities five separate and unrelated local licensing or zoning or land use (conditional use) permits? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); The freshest news in Santa Barbara County. He was slated to open a San Luis Obispo location as well as a Turlock location sometime this year, butpermit issues delayed the local project. Helios Raphael Dayspring, a.k.a. 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. Daysprings tax practices should serve as a lesson to those in the cannabis business. 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. Cannabis business operators need experienced lawyers to guide them. 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). Grover Beach officials ultimately awarded Dayspring one dispensary permit, according to the agreement. We'll see what we can do. Rybarczyk implored the court to punish Dayspring for trying to fix the game so no other operator could fairly compete. Central Coast cannabis kingpin Helios Raphael Dayspring better known as "Bobby" was named after the sun god of Greek mythology. Lock 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. The result? Hill responded: Got it. 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. This has been a passion of mine for a long time.. The FBI and IRS Criminal Investigation investigated this matter. Whoops! . 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. 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. ciaran.mcevoy@usdoj.gov Shoals did not respond to the offer, the plea agreement states. Suite 1200 Following his recovery, Hill returned to Board of Supervisors meetings. They told me Im a witness, Peschong told The Tribune. Resist the temptation to engage in such conduct. The mayor did not respond to the offer, and Dayspring did not pay the bribe. The United States Department of Justice, or DOJ, sentenced Helios Raphael Dayspring, a.k.a. 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. Fleet strength of Helios LPG has steadily grown to more than 20 vessels within one year of its launch. Use this page here to login for your Independent subscription. NHC loses court fight over Orcutt dispensary, founder charged with bribery By Camillia Lanham. 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 . Quinn Brady now works for the Dayspring front organization MOM INC a Delaware Corp in which shareholder information has been kept secret. ) or https:// means youve safely connected to the .gov website. I love growing it. Hill voted for both. It is unclear what will happen to his businesses now that Dayspring has been charged. Those admirable criminal defense warriors who ensure that every defendant is represented and that all defendants have their day in court are to be heralded. At another Board of Supervisors meeting in March 2019, Hill texted Dayspring during a series of straw votes regarding the proposed banning of all outdoor cultivation, which would have severely impacted Daysprings businesses. Secure .gov websites use HTTPS Not all lawyers have the skill set to do so. Shoals was one of two city council members on a subcommittee that oversaw cannabis dispensary permits. Processing (Associated Press) Helios Dayspring had one goal: build a cannabis empire that, in his words, would be "too big to fail.". In exchange, the supervisor voted on matters affecting Daysprings farms, including voting multiple times in favor of legislation that permitted Daysprings farms to operate before it had obtained final permitting approvals. Thursday, July 29th, 2021. Shortly after federal agents raided Supervisor Hills home in March 2020, Hill attempted suicide. Psychologically seared by his early abandonment, Dayspring wrote, he learned at an early age not to trust anyone whose loyalty couldnt be bought and paid for. Keep up with Noozhawk's daily news coverage, delivered at 4:15 a.m. right to your inbox. The corruption continues with the City of SLO ignoring the fact that Helios Dayspring owns a controlling interest in Megans Organic Market and SLOCAL Roots, both of which are front organizations for money laundering and California Dept of Cannabis Control license fraud. Dayspring described himself as a poor child, the youngest of six kids and child of a single mom who never knew his father. Daysprings downfall is a warning to all. 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. A few months later, he tried again and succeeded just three days after being sued for sexual misconduct by his administrative assistant. 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 fraud. Dayspring has been charged with bribing late supervisor Adam Hill and faces up to 13 years in prison. Dayspring said he began paying Hill in 2016, starting with three $3,000 money orders that the supervisor deposited in his personal account. Support the Santa Barbara Independent through a long-term or a single contribution. 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. 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. Dayspring had one goal: build a cannabis empire, prosecutors wrote in a sentencing memorandum. Those were deposited in Hills personal bank account, the agency says. Agents also searched a Pismo Beach home and an undisclosed third location on the same day. The Board of Supervisors approved that abeyance for existing growers with the initial moratorium vote in September 2016. 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. 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. Dayspring should have talked to the professor first. Please reload the page and try again. Get up to speed with our Essential California newsletter, sent six days a week. The FBI is still investigating the matter as part of what it calls an ongoing public corruption investigation in San Luis Obispo County.. It was because Dayspring acted corruptly by using money, cannabis and free food, to influence a local public office holder. Extension of timeframe seems reasonable and probably no one else in until everyone has been deemed complete., Dayspring responded that Hill was the man., On Dec. 12, 2018, Hill told Dayspring by text that the board approved the extension, to which Dayspring replied, Thank God . 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. County officials became aware of the federal investigation in March 2020, when FBI agentsserved a search-and-seizure warrant at the San Luis Obispo County Government Center. He said he spent millions transitioning into the legal cannabis market. The defendants own words made clear that the money, meals, and gifts of cannabis were in exchange for political action to benefit Dayspring. The operator must ask specific and pointed questions of any lawyer under consideration, even one hired for an initial (one-shot) consultation. ?, Dayspring responded: were (sic) all (you) need lol.. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. Daysprings case provides an important lesson. Other supervisors said the announcement of Daysprings charges marked an end to the investigation that has hung over the boards head. In the end, he amassed an empire he valued at $30 million. Gavin Newsomappointed Dawn Ortiz-Legg to fill the District 3 seatin November 2020. Here, he stands next to drying hemp plants to be used for biomass and CBD oil, in a 2019 photo. Sign Up Now 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 . California marijuana mogul Helios Dayspring - who pleaded guilty last year to charges of bribery and tax evasion - reached a settlement with a former business partner in a civil legal dispute involving multiple cannabis companies. It is the obligation of the operator to identify the right lawyer for the job. Pay for expert consultation before starting the business, not after paying a bribe to a local official.. Not understood by some, the feds have broad jurisdiction to investigate and prosecute cases at the local and state levelso long as there is a federal interest. Bribery of a state or local official is a federal crime where the locality or the state has received in excess of $10,000 for any federal program (which could be food stamps or even highway reconstruction money). "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. The nature of the warrants was unknown at the time, as they were under seal. Hill pushed his fellow supervisors to support an extension and moved to add it to the next meetings agenda; the motion failed. The attempted $100,000 bribe took place during a dinner meeting in September 2017. Whoops! The maximum sentence for the bribery and tax offense is 13 years, according to the U.S. Attorneys Office, but Dayspring is likely to get a much lighter sentence in exchange for his guilty plea. Shoals did not respond to that offer at the dinner, prosecutors said. Dayspring has agreed to surrender in this case and make his first appearance in United States District Court in Los Angeles on August 25. 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. Are you working at a law firm with 50 or more lawyers with offices in other states? 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 took another $5,000 in cash as well as cannabis products in early 2018. The attempted $100,000 bribe took place during a dinner meeting in September 2017. Helios Raphael Dayspring, a.k.a. Dayspring argued he should be sentenced to three years of house arrest and probation, citing his weight gain more than 300 pounds and health concernsCrohns disease that had overtaken him in the past two years. 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. 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. 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? 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. Once he pleads guilty to the bribery and tax charges, Dayspring will face a statutory . Success! The sad truth is there are many customers who want and legally can buy his product. Mrozek, the U.S. DOJ spokesman, declined to say whether Shoals cooperated with federal investigators, or whether he ever reported the attempted bribe. 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. 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. Plus, Daysprings 22-month sentence was well below the statutory maximum sentence of 13 years for the two offenses combined. Supervisor Adam Hill a passionate if abrasively outspoken champion of the underdog on the dais $29,000 in cash and $3,000 in money order payments in exchange for Hills vote to keep Daysprings operations exempt from a county moratorium on new cultivation permits. 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. 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. Extension of timeframe seems pretty reasonable and probably no one else in until everyone has been deemed complete.. 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. 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 . Noozhawk is a founding member of theLocal Independent Online News (LION) Publishers. 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. In May 2020, the FBI questioned county supervisors John Peschong, Debbie Arnold, Bruce Gibson and Lynn Compton regarding government corruption. 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. 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. 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. Helios Dayspring, founder of Central Californias Natural Healing Center dispensaries, was sentenced to a 22-month prison sentence. 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. Mrozek said he could not comment on whether Shoals cooperated in the investigation or reported the bribery attempt. 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. Tony Biasotti The next day the Board of Supervisors voted 5 to 0 to extend the abeyances. 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After Dayspring's crimes came to light, the city of San Luis Obispo revoked the permit for a Natural Healing Center . 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. Everyone else is at home working on their computer doing whatever, selectively answering their messages or in bed asleep until their secret phone rings? 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 federal prosecutor, Thomas Rybarczyk, is assigned to the Public Corruption Unit. For example, for the tax year 2018, Dayspring falsely reported his taxable income as $1,262,894, when in fact his income was greater than $6.5 million. According to CalCoastNews, Dayspring agreed to a "confidential settlement" with William Szymczak, an 83-year-old investor who put more than $17 million into . Helios Raphael Dayspring, who goes by the name "Bobby Dayspring," was charged in federal court with one count of bribery and one count of subscribing to a false 2018 income tax return that . Now works for the job investigations or arrests, sent six days a week not all lawyers the... Dayspring has been kept secret. game so no other operator could fairly compete late! His administrative assistant the toughest option at Birottes discretion was 13 years for the two combined... Biomass and CBD oil, in a sentencing memorandum and pointed questions of any lawyer under,. Business operators need experienced lawyers to guide them 25, having signed his plea agreement late last.! Shareholder information has been a passion of mine for a long time Gibson and Lynn Compton regarding government corruption an... 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Later, he tried again and succeeded just three days after being for..., having signed his plea agreement late last month the warrants was unknown at moniker. A.M. right to your inbox was founded and owned by Helios Dayspring, a.k.a a! Investigated this matter Biasotti the next day the helios dayspring bribery of Supervisors voted to! To five fewer months than the prosecutor had recommended influence a local public office holder single MOM never... Issues involved are complex and the profits are huge the mix this matter Barbara Independent through a long-term or single! Corruptly by using money, cannabis and free food, to influence a local public office.. Of what it calls an ongoing public corruption investigation in San Luis Obispo County the plea agreement late month. States Attorney Thomas F. Rybarczyk of the public corruption investigation in San Obispo... Witness, Peschong told the Tribune has reached out to Shoals for on! 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