Cannabis operator permit denied due to ‘false or misleading information’
Helios Dayspring reportedly submitted false or misleading information with permit application
– The City of San Luis Obispo this week terminated Natural Healing Center’s commercial cannabis operator permit because the applicant, Helios Dayspring, submitted false or misleading information about criminal misconduct to city officials in the business’s permit application. Effective immediately, the business will not be permitted to operate in San Luis Obispo.
“Natural Healing Center would never have received the permit had we known then what we know now,” said Deputy City Manager Greg Hermann. “We are committed to a fair and transparent process that provides a level playing field for legal commercial cannabis companies here, but operators who participate in illegal activities are not welcome in San Luis Obispo.”
City officials sent a letter today to Natural Healing Center notifying them that the permit is automatically disqualified and terminated. A maximum of three retail storefront cannabis businesses are allowed in San Luis Obispo at this time. All retail storefront cannabis operator permits have been issued and Natural Healing Center received one of them, though the retail store has not yet opened.
Following the U.S. Department of Justice announcement in July that one of Natural Healing Center’s original permit applicants was being charged with several crimes, the city and other agencies conducted a thorough review of Natural Healing Center’s permit application and background check. In their review, city officials found evidence that Natural Healing Center’s former owner and one of the original permit applicants, Helios Dayspring, submitted false or misleading information in order to obtain and maintain the operator permit, which by law results in automatic disqualification of the application and termination of the permit.
As part of the application process, Dayspring told city officials that he had not ever spent money for illegal purposes, falsified any documents or was involved in tax fraud or evasion of taxes. However, he now admits to committing several crimes before the application period, including making a false tax return in 2018, underreporting his individual taxable income, bribing an elected official, and attempting to bribe another elected official.
There is no formal appeals process for an automatic disqualification. However, Natural Healing Center has the opportunity to respond if they believe the city’s determinations are in error.
“Ultimately, this is the right thing to do,” Hermann said. For more information, visit www.slocity.org/cannabis.
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