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Michigan regulators banned Youssef Barakat from working in the cannabis industry in the state follow several serious allegations.

State regulators have permanently banned Youssef Barakat from working in or owning any licensed cannabis business in the state, citing a series of serious violations at two marijuana dispensaries he co-owned and operated.

The Michigan Cannabis Regulatory Agency (CRA) found that Barakat violated numerous cannabis laws and administrative rules while employed at Big Rapids Tree House Club and Bay City Tree House Club, according to public records. The agency concluded that his actions posed risks to public health, safety, and welfare, which are grounds for permanent exclusion under the state’s marijuana laws.

Among the most alarming allegations, the CRA said Barakat’s Big Rapids dispensary sold cannabis to a 20-year-old Michigan State Police cadet during a February 2023 sting operation.

The cannabis, sold in a clear sandwich bag without proper labeling or tracking tags, was handed over by an unregistered employee not listed in the state’s monitoring system. Barakat later admitted that neither background checks nor employment records had been completed for the staff involved.

In the state’s adult-use market, residents must be 21 years or older to buy cannabis.

Regulators also said the dispensary lacked a printer to create legally required product labels, left surveillance cameras deliberately covered, and allowed marijuana to be sold in unsecured areas. During a routine inspection, CRA staff reported finding the business operating without electricity, security cameras, or a working alarm system. Barakat reportedly failed to notify the CRA that the city of Big Rapids had revoked his operating permit weeks earlier and admitted to using cannabis on site.

The Bay City location also raised red flags during a June 2023 inspection after a landlord found the dispensary unlocked and unattended. CRA investigators discovered nearly a kilogram of unsecured marijuana flower under a counter, as well as other inventory accessible to anyone entering the store.

As a result of these findings, the CRA formally issued a Notice of Intent to Exclude in December and recently finalized the decision to permanently bar Barakat from Michigan’s licensed cannabis industry. The decision means Barakat cannot be employed by, or serve as an applicant or owner in, any marijuana business regulated by the state.

Under Michigan law, all licensed cannabis businesses are required to check CRA exclusion lists before hiring or admitting new partners. The lists, which include both voluntary and involuntary exclusions, are publicly available on the CRA’s website.