News Summary
The Michigan Cannabis Regulatory Agency (CRA) has permanently banned Youssef Barakat from the state’s cannabis industry due to severe violations of marijuana regulations. His dispensaries, Big Rapids Tree House Club and Bay City Tree House Club, were found to have significant security issues and compliance breaches, including selling cannabis to an underage user and failing to conduct mandatory employee background checks. As the first individual on the CRA’s Involuntary Exclusion List, Barakat’s case emphasizes the importance of adherence to cannabis regulations in Michigan.
Michigan – The Michigan Cannabis Regulatory Agency (CRA) has permanently banned Youssef Barakat from participating in the state’s cannabis industry following multiple violations of marijuana laws. The decision was made due to serious breaches of regulations outlined in the Michigan Regulation and Taxation of Marijuana Act during Barakat’s management of licensed marijuana retail businesses, including the Big Rapids Tree House Club and Bay City Tree House Club.
The CRA’s investigation unveiled critical security and compliance issues at both dispensaries. A significant incident occurred during a February 2023 undercover operation, where Barakat’s Big Rapids establishment sold cannabis to a 20-year-old cadet from the Michigan State Police. The cannabis was improperly packaged in a clear sandwich bag and lacked the necessary labeling and tracking tags, which are mandated under state law.
Further complicating matters, it was revealed that the sale was conducted by an employee who was not registered within the state’s monitoring system. Barakat admitted to not performing the mandatory background checks on his staff, which are essential for maintaining operational integrity within the cannabis market.
An inspection of the Big Rapids dispensary highlighted additional alarming deficiencies, including the facility operating without electricity and having non-functioning security systems. Investigators noted that surveillance cameras were covered, raising serious concerns about safety and compliance. Moreover, Barakat failed to inform the CRA that his operating permit had been revoked weeks earlier by the city of Big Rapids.
Barakat’s governance of the Bay City location was similarly criticized. During inspections, CRA investigators discovered nearly a kilogram of unsecured marijuana flower hidden under a counter, indicating severe lapses in security protocols. Additionally, the Bay City dispensary was reported to be unlocked and unattended, with no employees on site, further exacerbating safety concerns.
In December 2023, the CRA formalized its decision to exclude Barakat from the cannabis industry by issuing a Notice of Intent to Exclude. With this ruling, Barakat became the first individual to be placed on the CRA’s Involuntary Exclusion List, a measure employed to address ongoing compliance issues authored by the CRA.
This exclusion list is critical for the Michigan cannabis sector, as licensed cannabis businesses are required to check CRA exclusion lists when hiring new employees or bringing in new partners. The CRA’s rigorous enforcement of these protocols aims to uphold the integrity and safety of Michigan’s regulated cannabis industry, ensuring that only compliant and responsible operators participate.
Barakat’s actions and subsequent exclusion underscore the importance of adherence to state regulations governing the marijuana industry. These laws are designed to prevent illegal activities while promoting a safe and regulated environment for cannabis sales.
The CRA’s oversight reflects an ongoing commitment to maintaining standards within the Michigan cannabis market and protecting consumers from potential risks. As the industry continues to evolve, the agency remains vigilant in its role as regulator, prioritizing lawful and ethical operations.
The implications of this decision are significant, as it not only affects Barakat, but also serves as a reminder to other operators in the state regarding the critical need for compliance with all aspects of the cannabis regulations.
Deeper Dive: News & Info About This Topic
- Fox 2 Detroit
- Wikipedia: Michigan Regulation and Taxation of Marijuana Act
- Metro Times
- Google Search: Michigan cannabis regulations
- Hoodline
- Encyclopedia Britannica: Marijuana
- Detroit Free Press
- Google News: Michigan marijuana violations
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
