The former operator of a Michigan marijuana store is banned for life from the state’s industry after a host of alleged violations, including selling unregistered cannabis to an underage buyer.
Youssef “Joseph” Barakat, a co-owner of Tree House Club in Big Rapids and Bay City, is the first individual to be “involuntarily” excluded from participating in Michigan’s regulated cannabis industry by the state’s Cannabis Regulatory Agency (CRA), Crain’s Detroit Business reported.
The CRA lists 10 other individuals who previously were “voluntarily” excluded from participating in Michigan’s marijuana industry as the result of settlement agreements.
Not on that list are Hanna and Jaklin Shina, who agreed in March to a lifetime exclusion from the Michigan industry and to surrender the license of their marijuana processing business, Flavor Galaxy, which ceased operations.
According to the CRA, Barakat co-owned Tree House Club, with a 50% stake in retail locations in Bay City and Big Rapids.
At the Big Rapids location, store workers sold cannabis to a 20-year-old state police cadet working undercover during a February 2023 sting operation, the CRA noted.
Tree House Club sold the cadet 1.5 ounces of cannabis flower “in a clear sandwich bag” with no track-and-trace information, Crain’s reported.
An employee who was not registered with the state made the illegal sale.
Barakat later admitted to not completing background checks on staff, the Detroit Metro Times reported.
A subsequent CRA inspection in April 2023 found the location without electricity and operable alarm and video-surveillance systems, according to the agency.
State inspectors who visited the Bay City location in June 2023 found the store “unlocked and unattended,” with several pounds of cannabis left unattended.
The CRA first filed notice in December 2024 of its intent to exclude Barakat from the state’s cannabis industry.
While Barakat’s statewide ban became official Tuesday, Big Rapids city officials had revoked Tree House’s license in 2023.
The business was open for less than a year, according to the Midland Daily News.
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