IRS Uncovers Deceptive Practices by Michigan Dispensary Entrepreneur

September 11th, 2023 Legal & Crime
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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.

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