The Gongwer Blog

Who's Next For Feds After 4 Plea Agreements?

By Zachary Gorchow
President of Michigan Operations
Posted: April 10, 2023 7:27 AM

The move by former House Speaker Rick Johnson and three other men to reach plea agreements with federal prosecutors admitting to a bribery scheme in medical marijuana licensing, U.S. Attorney Mark Totten's declaration that the case is ongoing and the four charged men agreeing to cooperate clearly signals the case is only beginning.

Mr. Totten was fully expected to announce charges Thursday. But the surprise was that federal prosecutors filed it as a felony information document with all four people charged reaching plea agreements instead of fighting the charges and taking their cases to trial.

That assuredly means Mr. Totten's office, which covers the Western District of Michigan for the Department of Justice, has proverbial bigger fish on its target list beyond Mr. Johnson, charged for accepting bribes while chair of the now-defunct Medical Marihuana Licensing Board in exchange for favorable treatment, and three men who either paid bribes or conspired to do so.

Sources tracking the case closely and knowledgeable about some aspects of it said there is no question more is to come.

"First of many dominoes," one said.

Another source with no direct knowledge of the inquiry but knowledgeable about law enforcement and some aspects of the flurry surrounding the licensing system that launched in 2017 said "dominoes are starting to fall, and they probably are looking at much bigger fish."

Thursday, considerable speculation surrounded two men, though neither has been accused of anything, and Mr. Totten would say nothing about who else is on the federal government's radar.

The two are former Senate Majority Leader Arlan Meekhof, who led the Senate from 2015-18 and nominated Mr. Johnson for the licensing board, and Steve Linder, a longtime top political fundraiser for Senate Republicans until Mr. Meekhof left office in 2019, who also was heavily involved in the marijuana industry.

Mr. Meekhof nominated Mr. Johnson (the statute directed him to submit three nominees to then-Governor Rick Snyder, who would make the appointment) and adamantly insisted Mr. Snyder pick Mr. Johnson. Under PA 281 of 2016, the Senate majority leader was to submit three nominees, one of whom the governor would appoint, as was the House speaker.

Thursday, in an interview with Gongwer News Service, Mr. Meekhof said Mr. Johnson at the time seemed the perfect fit for the board because of his legislative background, having served in the House from 1999-2004 and as speaker from 2001-04.

"We thought it was a good thing for the organization because who better than a former speaker of the House to help them with legislative intent," he said. "I also understand an extensive background check was done by the governor's staff prior to his appointment and there didn't appear to be any issues with having him on the board."

Mr. Meekhof said federal authorities have not contacted him. And asked whether he had any concerns about the investigation turning toward him, Mr. Meekhof said, "None at all."

Asked about reports he was adamant with Mr. Snyder that Mr. Johnson be appointed, Mr. Meekhof restated, "We believed Mr. Johnson was the best candidate."

And regarding the charges in general, Mr. Meekhof said he was just hearing about them and learning bits and pieces. Following the dissolution of the licensing board in 2019, he said he lost track of what was happening in the industry. Mr. Meekhof is a registered lobbyist but said most of his work involves consulting that does not fit the definition of lobbying in Michigan. He said he neither lobbies nor consults for anyone in the marijuana industry. Michigan lobbying records show his sole lobbying client is the city of Holland.

As to Mr. Johnson admitting to accepting bribes in exchange for favorable treatment in the licensing process, Mr. Meekhof said he is "always disappointed in folks from leadership that have failings." He also said the licensing system set up in the 2016 statute had checks and balances.

"Not one single person can make an influential decision," he said. "It has to be done as a board. The system seemed to be sound. It just seemed to be failings of individuals."

Mr. Meekhof had little to say as far as what the news of Mr. Johnson's admission meant to him personally. The two had no overlap in the Legislature. Mr. Meekhof joined the House in 2005 and the Senate in 2011.

"Ours was a professional relationship," he said. "He was speaker long before I entered the Lansing scene. We don't have a personal relationship."

Mr. Linder, reached late Thursday afternoon, said he was about to walk into a meeting and not immediately available for comment. Mr. Linder became executive director of the Michigan Cannabis Manufacturers Association in 2019.

The Detroit News previously reported that Mr. Linder had "become a focus of a grand jury probe because of his role in a marijuana lobbying business." The newspaper cited three sources who spoke on condition of anonymity. It further reported Mr. Linder told a committee in the Kansas Legislature last year that he helped work bills in the Michigan Senate involving the marijuana industry and regulations after they came over from the House.

Mr. Linder's position during that 2015-18 term in which he worked both the marijuana legislation in the Senate and remained a key fundraising leader for Senate Republicans has attracted notice though that by itself does not appear to violate any laws.

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