A 55-year-old Traverse City man, identified as John Cunningham, has been brought up on charges of tax evasion linked to an alleged black-market marijuana operation, as confirmed by the office of Michigan Attorney General Dana Nessel. The charges followed a thorough investigation by the Michigan State Police Marijuana and Tobacco Investigations Section. According to a press release, Cunningham is facing two counts of Filing a False or Fraudulent Income Tax Return, each carrying the possibility of a five-year prison term.
The investigation leading to Cunningham’s arraignment in the 54A District Court in Lansing revealed a large-scale, unauthorized marijuana cultivation and distribution operation based in Grand Traverse County. In January 2023, law enforcement executed search warrants and seized a significant amount of evidence, including 134 marijuana plants, over 230 pounds of processed marijuana, more than $100,000 in cash, two vehicles, and six Rolex watches valued at over $100,000 combined. The charges allege that Cunningham failed to report income from this operation and did not pay the required taxes for the years 2021 to 2022.
In a statement regarding the issue, the Attorney General's Office pointed out that Michiganders' vote to legalize marijuana was predicated on the notion that such enterprises would contribute to tax revenues for the benefit of the community. "When Michiganders voted to legalize marijuana, they did so with the expectation that sales would be taxed and the revenue would go toward benefiting our communities," Nessel said.
John Cunningham is scheduled to appear in court on September 11 for a probable cause conference at the Ingham County 54A District Court. The Attorney General and her team are focused on enforcing licensing and taxation requirements for legal marijuana businesses and prosecuting operations that do not comply with state laws.
