Michigan Fines Cannabis Firms $116K for Late Financial Reports

Michigan regulators last month began publishing monthly disciplinary action reports they issued to cannabis businesses, MLive.com reports. The first report includes eight fines totaling $116,000 for failure to submit proper financial reports by the deadline but no other violations were reported. 

Simon M. Gumma, a certified public accountant and president of Gumma Acho, told MLive that the Cannabis Regulatory Agency (CRA) “is filing complaints and assessing fines.” 

“I think they can even suspend or revoke a license for not being compliant. I don’t know that it’s gotten to that point.”— Gumma to MLive 

The CRA fined businesses between $8,000 and $10,000 for each overdue statement, which were each usually more than a month late, according to formal complaints reviewed by MLive. Some had overdue statements for multiple licenses and others were fined for violations related to 2020 statements, the report says. 

Infinite Chemical Analysis Lab Director David Egerton, whose company was fined $20,000 for two late statements, told MLive that the CRA made the requirement in 2021 but amended them in 2022 which “caught many facilities off guard” and led to Infinites’ late filing.  

The other firms fined by the CRA include:  

• Bella Sol Wellness, Muskegon, fined $10,000, for failure to file annual financial statements for fiscal year 2021 related to its medical cannabis retail center license. 
• The ReLeaf Center of Lapeer, fined $10,000, for failure to file annual financial statements for fiscal year 2021 related to its medical cannabis retail license. 
• The ReLeaf Center of Niles, fined $20,000, for failure to file annual financial statements for fiscal year 2021 related to its medical cannabis retail licenses in Niles and Chesaning. 
• Essence Provisioning, Pinconning, fined $28,500, for failure to file annual financial statements for fiscal year 2020 related to its medical cannabis retail license, and annual financial statements for fiscal year 2021 related to its medical and adult-use retail licenses. 
• Green Koi, Douglas, fined $9,500, for failure to file annual financial statements for fiscal year 2021 related to its adult-use retail license. 
• The Sweet Leaf, Flint, fined $8,000, for failure to file annual financial statements for fiscal year 2020 related to its medical cannabis retail license. 
• Cannamazoo, Kalamazoo, fined $10,000, for failure to file annual financial statements for fiscal year 2020 related to its medical cannabis retail license. 

In July, the Michigan CRA issued 70 formal complaints against adult-use companies, and three against medical licensees, according to the monthly statistical report.