Michigan man didn't pay taxes on $1.1M in marijuana sales, defrauded victim during Corvette sale

Smoke shop shut down after allegedly selling marijuana to minors

FOX 2 was there with Detroit police when they raided the place and shut it down. Not only is 313 Smoke City not permitted to sell marijuana, but police say they were selling it to minors.

(FOX 2) - A Michigan man is accused of failing to pay taxes on over a million dollars of unlicensed marijuana sales, leading to seven felony charges.

Shaun Michael Brown, 48, also defrauded an individual by selling him a sports car and never providing a valid title, the Michigan Attorney General said.

Big picture view:

The Holland man was arraigned on several felony counts last week after a probe by the Ottawa County Sheriff's Department and Michigan State Police's Marijuana and Tobacco Investigation Section.

The joint case revealed Brown had failed to pay taxes on more than $1.1 million in unlicensed marijuana sales. 

In addition to the 5-year felony counts, the investigation revealed Brown had also defrauded someone for $95,000 after selling them a 2021 Corvette. He failed to provide the victim with a valid title for the vehicle. 

"These charges reflect the steadfast resolve of our law enforcement partners and the Attorney General’s office to uphold Michigan’s regulated cannabis system, and we appreciate their unwavering work in bringing this case forward," said Cannabis Regulatory Agency Executive Director Brian Hanna.

Dig deeper:

Brown is charged with six counts of Taxes - failing to file/false return and one count of false pretenses more than $50,000 but less than $100,000, which is a 15-year felony.

He'll be back in court on Dec. 4 for a probable cause conference.

"Sales tax revenue supports our schools, our roads, and services our communities depend on," Attorney General Dana Nessel said. "I would like to thank the Ottawa County Sheriff’s Department and the Michigan State Police for their diligent work in investigating this matter. My office will continue to enforce Michigan’s tax laws and protect residents from fraud."