A Michigan resident, Ryan Richmond, has been convicted in a Detroit federal court for evading federal income taxes and obstructing the IRS, along with other offenses.
The evidence and court records revealed that Richmond, from Bloomfield, was the owner of the marijuana dispensary, Relief Choices, LLC, located in Warren, Michigan. Between 2011 and 2014, Richmond primarily used cash for the dispensary's operations. He also funneled customer credit card transactions through an unrelated third-party bank account, obscuring his true business earnings. During 2015 and 2016, Richmond misled IRS officials, notably an IRS auditor assessing his personal taxes. His deceptive practices resulted in over $1.15 million in tax losses to the IRS.
The sentencing for Richmond is set for December 13th. He could face up to five years in prison for each tax evasion charge, three years for obstructing the IRS, and one year for the intentional failure to file a tax return. Additionally, Richmond may be subjected to supervised release, restitution, and other financial penalties. The final sentencing will be decided by a federal district court judge, taking into account the U.S. Sentencing Guidelines and related statutory considerations.
The announcement came from Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division. The IRS Criminal Investigation division handled the probe, with Trial Attorneys Mark McDonald and Christopher P. O'Donnell from the Tax Division leading the prosecution.
The owner of Greenhouse of Walled Lake, a dispensary in Michigan, Jerry Millen, has expressed increasing concern over the prevalence of counterfeit money being used at his establishment. Over the recent months, he has reported significant losses amounting to hundreds of dollars every week due to fake currency transactions.
"In the past, we've occasionally encountered counterfeit bills, but the situation has escalated dramatically in the last two to three months," explains Millen. This surge in counterfeit currency usage has posed a significant financial threat to businesses like his.
An underlying issue compounding the problem is that, due to the federal prohibition of cannabis, Michigan-licensed cannabis dispensaries are barred from accepting credit card payments. As a result, they are more susceptible to counterfeit currency exchanges.
Richard Convertino, a former federal prosecutor, sheds light on the severity of counterfeiting. "The U.S. government classifies counterfeiting as an act tantamount to warfare," he notes. Convertino further explains that while counterfeit bills can sometimes be quite convincing, especially during a busy business day, there are certain indicators that can help identify them. The texture of the money is often the most telling sign. "Genuine currency has a distinct feel due to its cotton and linen blend. It's not just regular paper. If something about the bill feels off, there's a high likelihood that it's counterfeit," advises Convertino.
For Millen, the ultimate solution to this growing concern is clear: federal legalization of cannabis. He argues that it's contradictory for businesses like his to dutifully pay taxes and contribute positively to the community, yet only be permitted to accept cash, leaving them vulnerable to counterfeit operations. "We're responsible citizens, diligently paying our taxes. But the irony is, we're restricted to cash transactions which expose us to such frauds," Millen points out. "A move towards federal legalization would not only resolve this counterfeit issue but would also validate the cannabis industry as legitimate."
It's also crucial to note that Michigan's legal framework has stringent penalties for those caught in possession of counterfeit money with the intent to use. Such offenses may lead to a felony charge, potentially resulting in up to five years of imprisonment or hefty fines. This serves as a stark reminder of the legal implications surrounding counterfeit currency and the broader issues facing the cannabis industry in the region.
Nestled in the heart of the University of Michigan's campus lies The Diag, an iconic locale that has seen countless gatherings and events over the years. One such event that it's most famously associated with is Ann Arbor's renowned Hash Bash. Since 1972, this sought-after event has been a focal point for those advocating and pushing for reforms in marijuana laws, both at the local and broader levels.
Today, change is once again brewing at The Diag, but this time, the spotlight isn't solely on cannabis. Enter the world of psychedelics.
Now in its third year, Entheofest champions the cause of decriminalizing psychedelic plants and fungi throughout Michigan. This isn't just a sudden movement; the seeds were sown in 2020 when the Ann Arbor City Commission, in a unanimous decision, chose to decriminalize entheogenic plants at the city level. This landmark decision, recognized by the Washtenaw County Prosecutor's Office, means that within the entire Washtenaw County, there won't be any prosecutions related to the use, growth, or possession of these plants. However, it's essential to note that those found operating vehicles under the influence will face legal consequences.
But what exactly are entheogens? A term that translates to "creating the divine within", entheogens primarily refer to hallucinogenic plants and fungi. This term was conceptualized in the 1950s as an effort to offer a more neutral, positive spin to the word 'psychedelic'. In essence, entheogens are natural substances offering transformative, spiritual experiences. While the current discourse often revolves around mushrooms rich in compounds like psilocybin and psilocin, the entheogenic family includes others such as peyote, ayahuasca, and iboga.
Reports from the Washtenaw County Prosecutor's Office highlight that entheogenic plants typically don't lead to addiction and have a minimal risk of fatal overdoses. Contrary to what some might believe, they aren't linked to violent behaviors. In fact, some studies indicate their association with reduced incidents of partner violence among men. And it's not just Ann Arbor that's open to these plants. Places like Denver, Colorado, as well as Oakland and Santa Cruz in California, have also decriminalized them.
If you're eager to learn more and engage in insightful discussions, the third Entheofest event is right around the corner. Scheduled to be held on Sunday, September 17th, from 1:11 p.m. to 4:20 p.m., The Diag on U of M's campus will be buzzing with enthusiasts, advocates, and the curious.
This year's Entheofest promises a rich tapestry of voices. Participants will get to hear from individuals deeply entrenched in the world of psychedelics and hallucinogens. Among them are Jim Salame, the Rev. Mariela Perez Simon, and Julie Baron, who wears multiple hats as the co-founder of Decriminalize Nature Michigan, president of the Michigan Psychedelic Society, and founder/executive director of Decriminalize Nature Ann Arbor. U.S. Rep. Debbie Dingell of Ann Arbor will also be gracing the event with her insights.
For more in-depth information and updates directly from the source, visit the official Entheofest website: https://entheofest.org
Recently, Lume added a new store to its growing roster, situated at 401 W. Front Street, Traverse City. This establishment, repurposed from a former office building, marks Lume's seventh branch in northwestern Michigan. As of now, Traverse City is home to 12 adult-use marijuana shops, with Lume's recent opening. Additionally, city officials have confirmed that four other potential outlets are in line for state licensing. Once approved, this will take the number of adult-use shops in the city to 16.
Lume operates as a cannabis dispensary in Traverse City, MI, offering a range of cannabis flower types and other marijuana-related products. Their Traverse City dispensary provides an environment where customers can explore different product offerings, aided by the store's staff. Lume's inventory includes various cannabis products such as indica, sativa, and hybrid THC products, along with their Lume CBD line. The store also carries cannabis accessories and Lume-branded apparel. For those who prefer online shopping, Lume offers an online store, with options for home delivery or in-store pickup.
A distinguishing feature of Lume's product line is the inclusion of both Lume Cultivated and Lume Curated products. The Lume Cultivated range comprises products developed from their proprietary cannabis strains, which are grown and packaged internally. This line presents a selection that includes cannabis flower, pre-rolls, and edibles, available exclusively at Lume stores in Michigan. With an in-house approach to cultivation and packaging, Lume ensures that their products meet specific internal benchmarks.
Before Lume's establishment, the founders had a background of interest in recreational marijuana. Their business model includes physical retail outlets, a cultivation segment, and a digital platform for online purchasing and product delivery.
Lume Cannabis Co. - Traverse City, MI
The first-ever cannabis sales and consumption zone at the "Arts, Beats and Eats" festival in downtown Royal Oak this past Labor Day weekend was nothing short of a sensation. As described by festival producer Jon Witz, it was "spectacular and well-attended."
Witz proudly reported, "There were no complaints, no concerns…it was very successful." This designated area was situated in an alley between South Center Street and Washington Avenue, from Sixth Street to Seventh Street. It was marked off with a fence, covering the tented zone, designed to ensure the cannabis scent was minimized using a high-level fan/filtration system. Admittance to this area, shielded by scaffolding and drapery, was restricted to those 21 and above, presenting proper identification.
The section, titled "Dank Way" and sponsored by House of Dank Cannabis Company — a consistent key backer of Arts, Beats and Eats — showcased a range of products from nearly 10 brand partners. Besides product exploration, it also featured live entertainment and a safe place for consumption.
Out of the 345,000 festival attendees over four days, thousands visited Dank Way. Witz observed, "Some came out of sheer curiosity, not intending to purchase or partake, while others reveled in the novel experience of legally purchasing and consuming cannabis at such a large, diverse event."
He applauded House of Dank's effort stating, "They invested heavily to craft this unique, well-organized, and captivating space." Furthermore, he praised the City of Royal Oak and Arts, Beats and Eats for their forward-thinking attitude in embracing such trends, thereby helping to break cannabis-related stigmas.
It's noteworthy that the Royal Oak City Council initially resisted this idea last year, but came around this year, giving it a green light on a trial basis. Necessary approvals from state agencies were also procured.
Mike DiLaura, Chief Corporate Officer of House of Dank, shared that over $100,000 worth of products were sold during the festival, drawing a massive crowd of 17,000 into Dank Way. He expressed, "It was groundbreaking. The event not only complied with all regulations but also succeeded in setting a festive mood. Our contribution to Arts, Beats and Eats was additive, not detractive."
DiLaura's satisfaction with the festival's outcome was evident. He believes it places House of Dank in a position to further revolutionize the industry. Given their investment of $400,000 in sponsorship, infrastructure, entertainment, security, and staff for this year's festival, their commitment is clear.
Looking ahead, DiLaura envisions a promising role for House of Dank in future festivals. "In 15 years, the scenario will be different. Currently, we're bridging culture and commerce, and enjoying every moment," he remarked.
Michigan's regulatory body for cannabis, the Michigan Cannabis Regulatory Agency (CRA), is under the spotlight for alleged tardiness in addressing violations within the marijuana business sector. A comprehensive state audit has drawn attention to this delay, igniting concerns over the potential risks posed to consumers.
The Office of the Auditor General, in its review, found that the CRA can take up to two years to implement disciplinary actions against defaulters. This delay is concerning, as timely interventions by the CRA can help mitigate potential risks to cannabis consumers in Michigan and prevent future violations by licensees.
Delving into the details, the audit scrutinized the CRA's approach towards 678 complaints from April 1st, 2021, to September 30th, 2022. The findings were revealing. On average, it took the agency 196 days to discipline businesses cited in 123 of these complaints. The most prolonged disciplinary process extended up to 757 days. The nature of these complaints spanned various segments of the cannabis industry - from production and sales to operations and security.
While the CRA has made some improvements to the complaint process within its jurisdiction and has claimed to prioritize consumer safety-related complaints, the report indicates there's much left to be desired.
The CRA's mandate, as outlined by Sections 333.27303 and 333.27957 of the Michigan Compiled Laws, is clear. It's responsible for taking corrective actions against any infractions and imposing requisite fines or sanctions against violators of marijuana laws.
The standard procedure post any violation report is systematic. After an internal investigation, the CRA issues a formal complaint to the concerned business, detailing the violations and the impending disciplinary actions. At this stage, businesses have the right to contest the complaint. If they choose this route, other state agencies get involved, and the CRA loses control over scheduling these hearings. Post these hearings, a final order specifying the disciplinary action by the CRA is issued.
While the process seems straightforward, the figures tell a different story. Of the 678 formal complaints, only 14% of the completed and 7% of the ongoing complaints seemed to involve a contested hearing. Despite this, the delay in action remains significant. The CRA cited staffing shortages as a significant hindrance in managing the inflow of disciplinary cases during the audit period. To address this, post-audit, the CRA has set metrics to expedite the disciplinary process.
Furthermore, another area of concern is the timely inspections of medical and adult-use marijuana facilities. CRA's inspections are designed to ensure the safe and compliant operations of these facilities, from pre-licensure inspections to post-licensure and periodic checks. These checks help affirm the correct operations of facilities, ensuring the right safety and operational standards, and preventing sales to those under 21. However, between April 1st, 2021, and September 30th, 2022, there were significant delays in these inspections.
Lastly, an urgent need was identified for the CRA and the Department of Licensing and Regulatory Affairs (LARA) to improve security and access controls over their systems, Accela and Metrc. This is crucial to prevent unauthorized data access and ensure marijuana facility and patient data protection.
The state audit has thrown a spotlight on significant areas needing improvement within Michigan's cannabis regulatory framework. While the CRA has recognized some of these issues and is working towards addressing them, it's clear that more robust and timely interventions are necessary to ensure the safety and interests of Michigan's cannabis consumers.
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