District of Columbia cannabis dispensary founder pleads guilty to tax evasion

The founder of a medical cannabis dispensary in Washington, D.C., pleaded guilty to charges of failing to pay more than $1.2 million in federal income and employment taxes for five years.

Former Herbal Alternatives II owner Jennifer Brunenkant, 68, admitted to not paying the taxes from 2017 to 2021, according to a Tuesday news release from the U.S. Attorney’s Office.

Brunenkant also deliberately concealed her actions, stating on her annual D.C. Unincorporated Business Franchise tax forms that she had filed her federal returns when she had not, according to court documents.

The government plans to seek more than $1.2 million in restitution for the unpaid taxes during Brunenkant’s Nov. 20 sentencing hearing.

Herbal Alternatives II was the first woman-owned dispensary to be awarded a license in the District of Columbia, according to the business’ website.

The case was investigated by the IRS Criminal Investigation’s D.C. office, the release noted.

Tax evasion and failure to pay employment taxes each carry a maximum sentence of five years in prison and potential financial penalties.