Joshua Braun, former owner of the HortiPharm medical marijuana dispensary, believes that had he gone to trial he would have beaten the 43 marijuana and money-laundering crimes he was charged with after his shop was raided in June of 2010. Among his reasons for agreeing to a plea deal, though, were to free up his wife, Dayli – who was also charged with money laundering – to run Pizza Guru, her popular upper State Street eatery.
In exchange for pleading guilty to one felony count of marijuana sales and one misdemeanor charge of money laundering, all of the charges against Dayli (and many of those against Joshua’s 11 employees) were dropped. That decision, however, has come back to haunt him as Alcohol and Beverage Control (ABC) is threatening to take away Pizza Guru’s beer and wine license due to a rule forbidding a license for a business-owner whose spouse has ever been found guilty of a felony.
According to Braun, on December 5, he and Dayli met with ABC District Administrator Leslie Pond who notified the couple that, without a change of ownership, their beer and wine license will be revoked. They must now decide by December 15 whether they will appeal the decision, go dry, or sell their restaurant. Pond told The Independent that Pizza Guru still has an operating beer and wine license and that he could not say any more publicly about the business. Should they decide to sell, said Braun, they would have 180 days to find a buyer during which time they could sell beer and wine.
Matt Olufs of Compass First business consultancy said that ABC’s job is to promote small business while protecting the public from irresponsible sales of alcoholic beverages. He described Leslie Pond as a “straight shooter.”
Braun also doesn’t think that ABC is trying to stick it to him, but he does pick up on the Kafkaesque nature of his situation. In trying to save his wife’s business from the ramifications of running a medical marijuana dispensary — that he took pains to clear with local authorities before the raid — he actually harmed it. Moreover, ABC regulations preclude Dayli from selling to a blood relative. (Her mother has expressed interest in taking ownership.)
Braun also wonders if ABC was tipped off. “I still blame the city and county for a lot of what happened to me,” he said. “It should be between me and the county. It keeps coming up. I never lied on my application. It was very transparent. I never tried to hide what I did.”
Von Nguyen, the Deputy District Attorney who prosecuted Braun, said, “In response to an inquiry by the ABC as to the status of Mr. Braun’s case, I advised the ABC of Mr. Braun’s conviction.”
Braun does admit that when he and Dayli decided that Pizza Guru would be run under the latter’s name, they forgot to remove Josh from their type 12 beer and wine license — not that it would matter. According to Title 4, Rule 58 of the California Code of Regulations, a license holder’s spouse must meet the same qualifications as the license holder.
Pizza Guru — which sources local, organic ingredients — is a burgeoning business. When Dayli bought the restaurant at 3534 State Street in 2008, it was bringing in about $125,000 of revenue. Now, said Braun, they estimate this year’s revenue will total over $700,000. “It’s a small family-owned business that is succeeding right now, paying its bills, hiring employees, continuing to grow,” said Braun.
According to him, alcoholic beverages account for only 12 percent of Pizza Guru’s sales, but it is a indispensable accompaniment to pizza pie. Furthermore, Pizza Guru is likely the only place in town where those with celiac disease can wash down a gluten-free pizza with a gluten-free beer. It is typical, said Braun, for customers to tell him, “I haven’t had pizza and beer for five years.”
When he and Dayli met Pond at the regional ABC office in Ventura, said Braun, they were totally blindsided. “My wife was in tears. We had our six-week old baby with us.”
Braun said he has even considered divorce, but for now it looks like the couple will remain happily married. Although they still aren’t sure how they will proceed, they are looking into the possibility of starting a franchise which would allow them to maintain creative control of Pizza Guru without owning any actual restaurants.


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Wrongly arrested, guilty plea literally at gunpoint, and now this. Best of luck to The Brauns.
Ken_Volok (anonymous profile)
December 13, 2011 at 5:31 p.m. (Suggest removal)
Horrible. I hope the city council, the DA and idiot Brown read this and see the damage they have done. The blame for this wrong lies completely on them. Especially Brown.
Num1UofAn (anonymous profile)
December 13, 2011 at 7:03 p.m. (Suggest removal)
I myself would have (if I knew I could be found Not Guilty) stuck it out at the expense of loosing both business, rather than accepting a Felony conviction and adding "ONE" strike against myself. After loosing both business a LAW SUITE against the City, and State. The City for the obvious, no business, no income, false imprisonment, displacement, default on investment and so on. The State for the abigious nature of the Law for medicinal Pot, undefied or lack of explicit definition of distribution of said Pot, and for lack of protections from unlawful procecution from Runaway courts and Law Enforcement heads (Police Chiefs and Sheriff's). Remember , the Law was approved but not defined regarding the aquirment, packaging and distribution of medicinal pot., this leaves many open loopholes for false prosecution for what would be deemed legal operations of "Pot Shops". I have not as of yet found anything in the Federal Government designating the proper aquirerment, packaging or distribution of medicinal Pot but am still looking....
Anyway, that's how I would have handled it.
dou4now (anonymous profile)
December 14, 2011 at 7:19 a.m. (Suggest removal)
I've said this before and I'll say it again, only slightly differently:
"You can lead a HortiPharm, but you can't make her shuck the corn."
(Cue closing credits and outro music)
Draxor (anonymous profile)
December 14, 2011 at 9:06 a.m. (Suggest removal)
Wow, so they can shut your business down based on manufactured charges and threats.
Smells like tyranny to me.
loonpt (anonymous profile)
December 14, 2011 at 10:16 a.m. (Suggest removal)
This is a wonderful family & an incredible business (Guru). The vengeance with which local officials have gone after this young family is utterly horrifying. Where is the Civil Liberties Union on this? There must be a compassionate lawyer in town who can find ways to help these people out.
I admire Mr. Braun for maneuvering to protect his wife & children.
To the Brauns I ask: How can we help?
Also: Fine writing & reporting by Mr. Fastman.
Emily (anonymous profile)
December 14, 2011 at 10:57 a.m. (Suggest removal)
"Admire Braun for maneuvering to protect his wife and children"?
How is someone who operated a business for years in clear violation of federal law protecting his family? How is a man who operated a business that at best was operating in a "grey" area of state law protecting his family? A good husband and father would have steered far away from anything that could be close to illegal and potentially hurt his family. He knew what he was getting into from the beginning and clearly thought the rewards outweighed the risk. It appears he was wrong, but he has only himself to blame and I hope his family forgives him for choosing the almighty buck over his family.
johnny123 (anonymous profile)
December 14, 2011 at 11:20 a.m. (Suggest removal)
How were they blindsided if it is clearly in the code that a spouse can't be a convicted felon? It's hard to believe that this would not have been known and considered before he decided to plead guilty to a felony.
SBresponse (anonymous profile)
December 14, 2011 at 11:48 a.m. (Suggest removal)
Here's pat of the problem: Medicinal pot & the "dreams" some have of getting involved w/ the "legal" distribution of it.
As it stands, even w/ all the legalities in favor of pot dispensaries, there will always be a law on top of a law to attack said legalities.
ANYONE getting into this business (medicinal pot dispensaries) needs to know the potential legal risks as well as the potential repercussions/ramifications before they make a deal w/ the devil.
There's many things that could've been done to avoid such a fiasco, sadly enough, they weren't.
I'm keeping my eye on this 1, it is gonna play out in a strange, yet familiar fashion :) henry
hank (anonymous profile)
December 14, 2011 at 9:39 p.m. (Suggest removal)
Holy crap! What sort of antiquated law is that????!!!? How have I never heard of this before? Am I getting this straight, SHE can't keep HER liquor license because of her husband's felony??? I'm going to go out on a limb here and guess that this law has mostly affected women...as in female business owners have mostly been royally SCREWED by this. Um...I would go the divorce route, keep the rings on and family together under one roof, and keep the business with the liquor license. Who needs a piece of paper anyways??? And...I don't blame the husband for taking a plea deal. He probably did it to alleviate some of the stress on his pregnant wife, and to ensure that she wasn't going back into the slammer.
I don't think that business owners should be 'taking it in the behind' over grey areas of law. That's something that the City and the State should be working out BEFORE they start prosecuting people. That just wouldn't hold up in court.
I've seen Hortipharm in the newspaper a couple times over these past few years - quotes, pics, etc. It seems to me that they were the only dispensary willing to operate with a level of transparency and openness to the public. There are (or at least have been) other dispensaries that are awfully quiet and trying to fly under the radar, which to me is when they start to seem a little sketchy. Why be in the shadows if you've got nothing to hide?
Gaijin (anonymous profile)
December 15, 2011 at 5:26 p.m. (Suggest removal)
Do medicinal pot shops want the drug re-legalized?
billclausen (anonymous profile)
December 17, 2011 at 1:55 a.m. (Suggest removal)
Well gaijin, people with nothing to hide fly under the radar because other people decide to create problems where there were none before...then create more layers of legislation & bureaucracy to address those manufactured problems. I get what you are saying...and sometimes that is true..but this is one of those situations where it isn't. Other dispensaries flew under the radar because they were afraid of the morality police/prohibitionists who have deemed themselves worthy of telling the rest of us what we may put into/remove from our bodies.
And yes, billclausen, I am fairly certain that the pot shops want re-legalization of marijuana, as many folks do.
Sadly, we live in an era where the Nanny State is becoming increasingly powerful, as people are indoctrinated from childhood both at home and in the schools to turn to the government to answer all their questions and tell them what to think and do. Rather than recognize and address our own needs as adults, we are slowly becoming infantalized by special interests and various powers-that-be, losing our ability to question what must be questioned and to act on our own behalf.
Yes, there is a place for government, social services and law enforcement, but unless we as a people define that place, and also work to preserve our civil liberties, we are destined to become fearful, quivering, shuffling sheeple with our heads down, handing over all our resources and civil rights, doing exactly as we are told, and waiting to die.
Not a good prospect.
Manufacturing problems is what special interests are good at; it has worked in many other arenas ranging from pet ownership to the words we are permitted to say, and beyond. We all know about ridiculous legislation and political correctness gone off the rails. We discuss it. We detest it. Yet we continue to allow it.
Stand up for the pot shops and don't buy the crap that we need to "protect The Children". "The Children" aren't going in the pot shops. This is not about "The Children"...it is about adults who want the power which adulthood conveys, without the responsibility of standing up for what they themselves believe or wish for.
Enough.
Holly (anonymous profile)
December 17, 2011 at 11:21 a.m. (Suggest removal)
These crimes are not included in the California Three Strike law. It is irresponsible to make such factually inaccurate accusations.
mtnflower (anonymous profile)
December 19, 2011 at 9:55 a.m. (Suggest removal)