Michigan man accused of failing to pay taxes on more than $1 million in unlicensed marijuana sales
A Holland, Michigan, man is facing charges for alleged fraud and failure to pay taxes on more than $1 million in unlicensed marijuana sales, according to the Michigan Attorney General's office.
Shaun Michael Brown, 48, was arraigned on Nov. 21 for one count of false pretenses — $50,000 but less than $100,000 and six counts of failure to file taxes/false return.
Officials say the case was submitted to Nessel's office by the Ottawa County Sheriff's Office and the Michigan State Police's Marijuana and Tobacco Investigation Section.
"Sales tax revenue supports our schools, our roads, and services our communities depend on," Michigan Attorney General Dana Nessel said in a statement. "I would like to thank the Ottawa County Sheriff's Department and the Michigan State Police for their diligent work in investigating this matter. My office will continue to enforce Michigan's tax laws and protect residents from fraud."
State officials say Brown allegedly failed to pay sales taxes on the $1.1 million he earned from the marijuana sales, as well as income and sales taxes for a 2021 Corvette he sold. Officials say Brown sold the vehicle for $95,000 and allegedly did not provide the customer with a valid title for the car.
A probable cause hearing is scheduled for Dec. 4, and a preliminary examination is scheduled for Dec. 18.
"These charges reflect the steadfast resolve of our law enforcement partners and the Attorney General's office to uphold Michigan's regulated cannabis system, and we appreciate their unwavering work in bringing this case forward," said Cannabis Regulatory Agency Executive Director Brian Hanna. "Cases like this demonstrate exactly why a strong, transparent regulatory framework matters – and why those who choose to operate outside it will be held accountable."