A northern Michigan man is facing tax fraud charges related to a "black market" marijuana operation, Michigan Attorney General Dana Nessel said. 

John Cunningham, 55, of Traverse City, was arraigned Wednesday in Ingham County on two counts of filing a false or fraudulent income tax return. 

The state's decision to charge Cunningham comes after an investigation by Michigan State Police's Marijuana and Tobacco Investigations Section, which prosecutors say uncovered a large-scale, unlicensed marijuana grow and distribution operation that spanned several buildings in Grand Traverse County.

According to state prosecutors, in January 2023, Michigan State Police confiscated more than 230 pounds of processed marijuana, $100,000 in cash, 134 marijuana plants, two vehicles, and six Rolex watches valued at more than $100,000 from Cunningham's home. 

Nessel alleges that Cunningham collected income from a "black market" marijuana operation and did not file taxes in 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 in a statement. "People must pay their taxes, and my office will continue to hold accountable those who seek to profit outside the law." 

Cunningham next has a probable cause conference in Ingham County District Court on Sept. 11.