Judge rejects Dayspring’s pot shop suit against SLO

February 8, 2023

Helios Dayspring


A judge last week rejected Natural Healing Center’s lawsuit alleging San Luis Obispo improperly terminated the retail pot shop’s permit based on Helios Dayspring’s criminal history and dishonesty.

Dayspring, a local marijuana mogul, transferred ownership of his retail cannabis shops to his girlfriend Valnette Garcia in 2020, before he pled guilty to tax fraud and bribery charges. In Oct. 2021, city staff canceled approval for the Natural Healing Center cannabis shop because Dayspring had not disclosed the bribery or the fraud during the application process.

That was not legal, Natural Healing Center attorneys argued in a meeting with SLO City officials. “Dayspring has no connection” with the retail store they said.

After city officials rejected that argument, Natural Healing Center filed a lawsuit against SLO in Dec. 2021 alleging improper termination of its retail pot shop permit in which a new argument arose: selective enforcement of the rules.

Dayspring argued that city officials had treated him unfairly because the people from Megan’s Organic and SLOCal Roots also lied on their applications.

The owners of the other two pot shops falsify claimed they funded their shops independently and on their own. That was a lie, Dayspring said and he should know because he loaned them hundreds of thousands of dollars to get started.

The loans were supposed to turn into an ownership stake in each shop, maintaining Dayspring’s control of marijuana in SLO.

Attorneys for the city argued that Natural Healing Center did not provide evidence that the owners of the other two pot shops were required to disclose financial backers.

“Moreover, even if the city ‘selectively enforced’ its Municipal Code, selective enforcement is not a doctrine supporting a claim for affirmative relief against the city, inasmuch as Natural Healing Center does not allege it is part of a protective class.”

SLO County Superior Court Judge Rita Federman then sided with the city and dismissed Natural Healing Center’s lawsuit.

Sign up for breaking news, alerts and updates with Cal Coast News Top Stories.

Inline Feedbacks
View all comments

How about we preserve freedom and allow any adult to buy and sell and grow marijuana, making it no different than growing and selling broccoli or cauliflower? That was the way it was when George Washington and Thomas Jefferson were growing and using marijuana and there were no big problems with that at all.

LOL, they also let children smoke, painted with lead paint and used leeches for bloodletting back in the colonial days too. Modern medicine is a wonderful thing and has eliminated the need to smoke plants.

Hey Helio! Karma is a Bitch~ mmmmkay???

Right call throwing out this case – got caught lying on your application? Too bad, so sad – take your corrupt business out of town. As for the other business, sounds like nothing is proven yet, but if something is, the law should come for them too.

Sad but not surprising how smelly the cannabis business is. Don’t envy the City regulators trying to sort the honest entrepreneurs from the lying crooks in that industry.

Eric Powers told several people that Dayspring’s convertible note converted to equity in MOM INC a Delaware Corporation that owns all the Megan’s Organic Market stores yet there’s no proof of who owns MOM INC to date. There’s been no proof of the transactions showing how the Dayspring’s money was paid back either. City of SLO attorney Christine Dietrick is refusing to provide the documents and has stated she has not seen them. The FBI investigation into Megan’s Organic Market and Dayspring is ongoing.

Not coming to Dayspring’s defense here, but something appears to be terribly wrong with the licensing process for these businesses. The whole thing smells of corruption and favoritism.

Of course it was, how else can a licensee, such as Helios Dayspring, that was at the bottom of the list following the selection process end up being selected by the city’s council.

I believe that was related to the Moro Bay store. Judge Ginger Garrett ruled it was o.k. to skip ahead on the list. She later retired with no notice with 4 years left in her term. There has been no investigation into her role in cannabis mischief. It is suspected by some that the FBI agreed not to prosecute her for bribery in exchange for her leaving the bench.

It’s very corrupt and I personally won’t go to a walk in dispensary in this county because of the corruption involved. The county knowing what they know with Dayspring’s involvement and Adam Hill’s corruption should shut down all walk in dispensaries in this county and start the process all over again so the honest dispensaries that are limited to only delivery can apply for a walk in dispensary and have a fair shot.

And what delivery service are you affiliated with?