WASHINGTON — The founder and former owner of a D.C. marijuana dispensary has pleaded guilty to evading more than $1.2 million in federal taxes, prosecutors announced Tuesday.
Jennifer Brunenkant, 68, of Washington, D.C., admitted in court that she failed to pay federal income and employment taxes connected to her business, Herbal Alternatives II, LLC, from 2017 through 2021. The dispensary was a licensed marijuana retailer operating in the District.
The announcement was made by U.S. Attorney Edward R. Martin Jr. and Kareem Carter, Executive Special Agent in Charge of the IRS Criminal Investigation’s Washington D.C. Office.
According to court documents, Brunenkant not only failed to pay taxes but also took deliberate steps to conceal her actions. She falsely stated on her annual D.C. Unincorporated Business Franchise Tax forms that she had filed her federal returns, when in fact she had not. She doubled down on those claims during a July 2023 interview with law enforcement, again claiming her returns had been filed.
Brunenkant pleaded guilty before U.S. District Court Judge Loren L. AliKhan to one count of attempting to evade or defeat tax. She is scheduled to be sentenced on November 20. The court will determine her sentence after considering federal sentencing guidelines and statutory factors.
At sentencing, the government plans to seek restitution of more than $1.2 million for the unpaid taxes.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Brian P. Kelly.
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