San Luis Obispo wins first round against Dayspring’s pot shop

February 4, 2022

By KAREN VELIE

A judge on Tuesday denied Natural Healing Center’s request to continue operating in San Luis Obispo while the court determines if the city properly terminated the retail pot shop’s permit based on Helios Dayspring’s criminal history and dishonesty.

Natural Healing Center SLO filed a lawsuit against San Luis Obispo in December alleging improper termination of its retail pot shop permit. The cannabis company then filed for a preliminary injunction to remain operational while the court makes its determination.

Before he pled guilty to tax fraud and bribery charges, Dayspring transferred ownership of Natural Healing Center SLO into the name of his live-in girlfriend Valnette Garcia. A year later, in Oct. 2021, city staff revoked the pot shop’s permit because Dayspring had not disclosed his criminal activity and had lied about owning the underlying property during the application process.

SLO County Superior Court Judge Rita Federman denied the request for a preliminary injunction because it did not meet the two legal standards: that the plaintiff is likely to win the case on its merits and that the injunction will stop irreparable harm to the plaintiff.

Federman determined Dayspring was dishonest during the application process. The judge also rejected the argument that Dayspring’s criminal history is irrelevant because he no longer owns the business.

“The fact that Mr. Dayspring is no longer a member or owner of (NHC) is of no moment, given that his statement formed the basis of approval,” Federman wrote. “In short, (NHC) fails to show that this is an ‘extreme case’ where the right to a mandatory temporary restraining order is clearly established.”

Marijuana mogul Helios Dayspring pleaded guilty in Dec. 2021 to one count of bribery and one count of filing a false tax return. Dayspring admitted to paying thousands of dollars in bribes to then-San Luis Obispo 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.

Dayspring faces a statutory maximum penalty of 13 years in federal prison. His sentencing hearing is scheduled for Feb. 11.


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obispan

1). He’s been selling dope since high school in Morro Bay. 2). He was at the center of the Atascadero wild west marijuana adventures targeted by out of the area gangsters. 3). He has a financial interest in, and paid the bribes for, every licensed operation in the county.


Budd Fugger

So what? Steve Jobs built computers in his garage and went on to form Apple. Plenty of precedent.


jimmy_me

Wow! The audacity of criminals these days. Does anyone on the planet believe that this guy is not still making money from this business despite no longer being “an owner”? You can’t make this stuff up.


diamond

Whatever accountability Dayspring is given, the same should go to those who took bribes. Who’s to blame, the hooker or the John?


unusualsuspect

I understand bribery was happening, but at the same time, did the council just do absolutely zero due diligence during the permit application process?!? More pathetic “leadership” from slo officials :/


paragon

Oh they did “due diligence” all right, all the way to the bank to deposit Helios’s bribes.


obispan

I guarantee there were no banks and therefore no records. This is why the FBI has to take time to investigate.


paragon

It was a figure of speech. Bank or no bank, bribes were definitely made.