Traverse City Man Faces Felony Tax Fraud Tied to Large-Scale Black Market Marijuana Operation

John Cunningham, a 55-year-old Traverse City man, has been charged with two counts of filing false or fraudulent income tax returns related to an alleged large-scale black-market marijuana operation in Grand Traverse County, Michigan. The Michigan State Police Marijuana and Tobacco Investigations Section uncovered an unlicensed multi-building grow and distribution operation, confiscating 134 marijuana plants, over 230 pounds of processed marijuana, more than $100,000 in cash, two vehicles, and six Rolex watches worth over $100,000 during a January 2023 raid. Prosecutors allege Cunningham profited from the black-market operation and failed to report income for tax years 2021 and 2022. Michigan Attorney General Dana Nessel emphasized that the legalization of marijuana was intended to generate taxable revenue to benefit communities, and her office will hold accountable those who evade taxes. Cunningham was arraigned in Ingham County's 54A District Court and is scheduled for a probable cause conference on September 11. Each charge carries a potential five-year felony sentence.