Cannabis Business Owner Gets 7-Months in Prison & Pays $263k to the IRS

Today we are going to discuss a sneaky little way that the IRS was able to discover that a cannabis business owner was not paying taxes Stay tuned Now that’s dope Hey, it’s Naomi the dope CFO and welcome to my channel If you are new to this channel Make sure that you subscribe and leave a comment below and remember when we reach our first 1000 subbies We will be giving away some dope swag. So make sure you subscribe and comment so you can be eligible for the giveaway I know the next video was supposed to be about the Olive case because I already discussed champs. I already discussed ultimate and Olive was next but today was the first federal sentencing Of a legal marijuana business owner for tax crimes So let’s get into the story cannabliss was a Eugene in Portland medical marijuana dispensary And it was partially owned by 32 year-old Matthew price matthew was sentenced to seven years in federal prison Plus two hundred and sixty three thousand dollars in restitution By the IRS you read this case It is clear that The judge was really trying to use Matthew as an example and I have some excerpts from the case here on my computer screen And I want to read them so that I don’t miss state them but it says and I quote With almost a thousand new retail marijuana businesses in Oregon ripe for tax cheating the prosecutor urged the judge to sentence price to prison for a year and one day to foster tax compliance a Sentence of probation would encourage similar tax cheating in a lightly regulated industry and then it goes on to say the court should not forego an Opportunity to deter text cheating by state legal marijuana business owners who are going to wake up the day after Prices sentencing hearing read an article about his sentence and decide what to do next April 15th Yes They did not want to let him slide or get away with this because they do not want to make this Common practice in this industry and I’ve said this before it is not if it is when you get audited now There is a sneaky little way though That price got caught price failed to report nearly a million dollars In income and no matter how many people advised him not to He was commingling business with personal expenses. He was using the business income to buy $67,000 sports cars $15,000 Rolex watches Tropical vacations expensive homes, and he even got season tickets to Portland Trailblazers It was basically using this business as his personal piggy bank crisis defense was he was not sure what he could and couldn’t deduct and he was Unorganized and not comfortable with the advice He was receiving from his Accountant, and now the judge came back and did not buy that at all and says, okay granted I understand going into this this business You’re not going into it with an MBA, but it was clear that price had the intelligence to understand one of the most basic Obligations of a business so check this out This is how the IRS cop price so they decided to investigate him when they realized that he was not playing That he was not paying employment taxes for his cannabliss business undercover IRS agents posed as Prospective employees and then price just spilled the beans and told them everything and so he told them quote He was not going to get ripped in taxes And he also disclosed that he was using the money from his business for personal payments Even though he knew that it was not legal, but what do you guys think about that? Do you guys think that the sentence fit the crime do you think that he was just made as an example? What do you think? I feel like just reading the case and from the IRS comments that he knew what he was doing He knew that what he was doing was illegal, and now that he got caught He’s just feeling a little bit of ashamed and about it, but I don’t think it would have stopped he’s supposed to report to jail on November first and they’re still deciding if he can continue to operate his business up until he’s Supposed to report to prison and they’re also trying to decide if once he’s done with his sentence if he can still operate his business Do you guys think that he should be able to do it leave a comment below and I will see you in the next video Stay doe

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