John Cunningham, a 55-year-old Traverse City man, was arraigned in 54A District Court in Lansing on two counts of filing a false or fraudulent income tax return related to operating an underground marijuana operation, according to Michigan Attorney General Dana Nessel.

Cunningham was charged following an investigation by 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," according to a release from Nessel's office.

"In January 2023, search warrants were executed on the alleged operation," the release states. "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."

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. 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. Each charge he's facing is a five-year felony.