Traverse City Man Charged with Tax Charges Related to Black-Market Marijuana Operation

LANSING – Yesterday, John Cunningham, 55, of Traverse City, was arraigned in the 54A District Court in Lansing on two counts of Filing a False or Fraudulent Income Tax Return, each a 5-year felony, announced Michigan Attorney General Dana Nessel. Cunningham was charged following an investigation conducted by the Michigan State Police Marijuana and Tobacco Investigations Section, which was investigating a large-scale, multi-building, unlicensed marijuana grow/distribution operation in Grand Traverse County. 

In January 2023, search warrants were executed on the alleged operation. MSP recovered 134 marijuana plants, more than 230 pounds of processed marijuana, over $100,000 in cash, two vehicles, and six Rolex watches worth more than $100,000 from Cunningham’s residence. It is alleged Cunningham received income from this black-market marijuana operation and failed to file taxes between 2021 and 2022. 

“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. “People must pay their taxes, and my office will continue to hold accountable those who seek to profit outside the law.” 

Cunningham will next appear for a probable cause conference in the Ingham County 54A District Court on September 11.