LANSING, Mich,. (WPBN/WGTU) – A 55-year-old Traverse City man was arraigned Wednesday on charges of filing a false or fraudulent income tax return, involving an alleged large-scale, multi-building, unlicensed marijuana grow/distribution operation, according to Michigan Attorney General Dana Nessel.

John Cunningham is charged on two counts of filing a false or fraudulent income tax return, with each a 5-year felony, according to Nessel.

Cunningham was charged following a Michigan State Police investigation into a “black market marijuana” operation located in Grand Traverse County, according to Nessel.

“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.”

In January 2023, search warrants were executed at Cunningham’s home, according to Nessel.

Her office said 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 the operation and failed to file taxes between 2021 and 2022, Nessel’s office said.

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