Detroit News writes
A former owner of a Warren marijuana dispensary faces at least nine years in federal prison for tax evasion and obstructing the IRS, officials said.
Ryan Richmond, 46, of Bloomfield Hills, was found guilty by a federal court jury, the U.S. Department of Justice said in a statement Monday.
Richmond owned and operated Relief Choices, LLC in Warren, according to the release.
Acting Deputy Assistant Attorney General Stuart Goldberg with the Department’s Tax Division said the dispensary paid its operating expenses in cash and routed customer credit card payments through an unrelated third-party bank account between 2011 and 2014 to conceal the business’ gross receipts.
He also said that in 2015 and 2016, Richmond misled IRS investigators, especially one reviewing his individual income tax return, regarding what he knew about the business operation.
According to IRS estimates, his actions resulted in a more than $1 million loss in tax revenue.
A federal grand jury in Detroit indicted Richmond in March 2021.
Richmond is scheduled to be sentenced on Dec. 13.
He faces five years in prison for each count of tax evasion, three years in prison for obstructing the IRS and one year in prison for the willful failure to file a tax return.
He also faces a period of supervised release, restitution and fines.
Michigan Marijuana Dispensary Owner Convicted of Tax Evasion and Obstructing the IRS
A federal jury in Detroit found a Michigan man guilty of evading federal income taxes and obstructing the IRS, among other charges.
According to court documents and evidence presented at trial, Ryan Richmond, of Bloomfield, owned and operated the marijuana dispensary Relief Choices, LLC in Warren, Michigan. From 2011 through at least 2014, Richmond had Relief Choices pay its operating expenses extensively in cash, and routed customer credit card payments through an unrelated third-party bank account to conceal his true business gross receipts. In 2015 and 2016, Richmond obstructed the IRS by misleading investigators – and particularly an IRS auditor examining his individual income taxes – about his knowledge of, role in and profits derived from his Relief Choices operation. Richmond caused a tax loss to the IRS of more than $1.15 million.
Richmond is scheduled to be sentenced on Dec. 13 and faces a statutory maximum penalty of five years in prison for each count of tax evasion, three years in prison for obstructing the IRS and one year in prison for the willful failure to file a tax return count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Tax Division are prosecuting the case.
