A former operator of a licensed cannabis retail outlet in Michigan has become the first person to receive a lifetime ban from participating in the state’s marijuana industry.
The Michigan Cannabis Regulatory Agency (CRA) has issued an involuntary lifetime exclusion to Youssef “Joseph” Barakat, who co-owned Tree House Club retail locations in Big Rapids and Bay City. The decision follows numerous violations, including the sale of unregistered marijuana to an underage buyer.
Barakat’s ban marks the first time the CRA has imposed a lifetime prohibition on an individual without a settlement agreement. The agency lists 10 others who have voluntarily accepted lifetime exclusions as part of previous settlements. Hanna and Jaklin Shina, for instance, agreed to a lifetime ban earlier this year in connection with their now-defunct business, Flavor Galaxy.
According to the CRA, Tree House Club sold 1.5 ounces of cannabis flower in a plastic sandwich bag with no proper labeling or tracking to a 20-year-old state police cadet during an undercover operation in February 2023. The sale was made by an unregistered employee.
Barakat reportedly admitted to failing to conduct background checks on employees. Additional inspections revealed a string of serious security failures. In April 2023, the Big Rapids location was found to be operating without power, video surveillance, or a working alarm system. A follow-up visit to the Bay City store in June 2023 found the building unlocked and unattended, with pounds of cannabis left unsecured.
The CRA first announced its intent to permanently exclude Barakat from the industry in December 2024. His ban became official this week.
Big Rapids officials had already revoked Tree House Club’s local license in 2023, less than a year after the business first opened.
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