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Ex-Michigan Pot Dispensary Owner Sent to Prison for Tax Crimes

MICHIGAN — The former owner and operator of a Michigan marijuana dispensary was sentenced to two years in prison Wednesday for evading income taxes and obstructing an IRS audit, according to the Department of Justice.

Ryan Richmond of Bloomfield Hills, Michigan ran Relief Choices LLC in Warren, Michigan.

Richmond paid the company’s operating expenses with cash and ran customer credit card payments through a third-party bank to prevent the business’s earnings from being known, officials said in a U.S. DOJ news release.

The incidents occurred from at least between 2011 and 2014 and resulted in Richmond not paying over $1 million owed to the government. Richmond also failed to report Relief Choices as a business he owned during certain years and filed no tax return at all in 2014, the release adds.

And Richmond also mislead an IRS auditor who was looking into Relief Choices, it states, adding that

he also has to pay $2.8 million in restitution to the IRS.

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