SLO County’s marijuana mogul Dayspring settles civil suit
March 31, 2022
By KAREN VELIE
San Luis Obispo County marijuana mogul Helios Dayspring recently reached a confidential settlement involving a 2020 lawsuit in which an 83-year-old partner sought financial damages and to have Dayspring replaced as the manager of their joint businesses.
In a lawsuit filed six months after FBI agents raided Dayspring’s home on the outskirts of San Luis Obispo, William Szymczak accused Dayspring of misappropriations of funds, breach of contract, fraud and elder abuse. Szymczak’s attorney Miles Feldman said he “is pleased the matter has been resolved.”
SLO County Superior Court Judge Tana Coates is tasked with making sure the parties abide by the settlement agreement.
Szymczak formed a partnership with Dayspring in 2019. They agreed that Dayspring would be paid $48,000 a year to manage their joint cannabis businesses while Szymczak would provide capital, more than $17 million to date, according to the lawsuit.
Szymczak was initially impressed with Dayspring’s experience in the cannabis industry and his claims of close relationships with public officials, according to the complaint. But problems arose. After learning that IRS and FBI agents had raided Dayspring’s home in March, Szymczak had accountants take a closer look at the books.
“To Szymczak’s shock and horror, it is now clear that Dayspring has been looting the companies all along,” according to the lawsuit.
In his defense, Dayspring argued in 2020 that he was taking money out of the accounts to pay taxes, and that he had not misappropriated funds. Dayspring claimed the criminal investigations were tied to a potential tax liability that occurred before recreational cannabis was legal, according to court records.
However, in Oct. 2021, Dayspring pleaded guilty to paying thousands of dollars in bribes to former SLO County supervisor Adam Hill and to tax fraud. Dayspring faces a statutory maximum penalty of 13 years in federal prison. His sentencing hearing is scheduled for April 22.
Dayspring’s civil attorney Marc Smith refers to his client’s issues with Szymczak as business dispute.
“We have a settlement agreement,” Smith said. “Mr. Dayspring and Mr. Szymczak had a business dispute that was resolved by virtue of a settlement.”
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