DC dispensary queen pleads guilty in $1.2M tax dodge

DC dispensary owner admits to evading $1.2 million in federal taxes
DC dispensary queen pleads guilty in $1.2M tax dodge
A woman holds marijuana for sale at the MedMen store in West Hollywood

WASHINGTON, D.C. — The former owner of a licensed marijuana dispensary in Washington has pleaded guilty to evading more than $1.2 million in federal income and employment taxes over a five-year period, prosecutors announced Tuesday.

Jennifer Brunenkant, 68, admitted in federal court that she failed to pay taxes related to her business, Herbal Alternatives II, LLC, from 2017 through 2021. The dispensary operated as a licensed marijuana retailer in the District of Columbia.

According to court records, Brunenkant took steps to hide her actions, including falsely stating on her D.C. business tax forms that she had filed federal returns. In a July 2023 interview with law enforcement, she repeated that false claim, telling investigators her returns had been filed when they had not.

Brunenkant pleaded guilty to one count of attempting to evade or defeat tax before U.S. District Court Judge Loren L. AliKhan. She is scheduled for sentencing on November 20. The court will determine her sentence based on federal sentencing guidelines.

Federal prosecutors plan to seek more than $1.2 million in restitution for the unpaid taxes. The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian P. Kelly.