LANSING, Mich. — A 55-year-old Traverse City man, John Cunningham, has been arraigned on two felony charges related to filing false or fraudulent income tax returns, stemming from an alleged underground marijuana operation, according to Michigan Attorney General Dana Nessel.
The charges follow an investigation led by the Michigan State Police Marijuana and Tobacco Investigations Section, which uncovered a large-scale, unlicensed marijuana grow and distribution operation in Grand Traverse County.
Major Seizure in January 2023
According to a press release from Nessel’s office, authorities executed search warrants on the property in January 2023, uncovering:
134 marijuana plants
Over 230 pounds of processed marijuana
More than $100,000 in cash
Two vehicles
Six Rolex watches worth over $100,000
Investigators allege that Cunningham operated the black-market grow site and failed to report or pay taxes on the income he received from the operation during 2021 and 2022.
Attorney General Statement
Attorney General Nessel emphasized the importance of transparency and taxation in the state’s legal cannabis market:
“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,” she said. “People must pay their taxes, and my office will continue to hold accountable those who seek to profit outside the law.”
Legal Proceedings
Cunningham is charged with two counts of filing a false or fraudulent tax return, each carrying a maximum penalty of five years in prison.
He is scheduled to appear for a probable cause conference on September 11 in Ingham County’s 54A District Court.
