Michigan Man Faces Severe Tax Fraud Charges in Alleged Multi-Million Dollar Illegal Marijuana Enterprise

A Shelby Township resident is now facing a gauntlet of severe felony charges, as Michael David Gabel, 57, was formally arraigned in Macomb County Circuit Court. These charges stem from an alleged extensive and illicit marijuana distribution enterprise that prosecutors claim operated for over a decade, resulting in significant tax evasion.

The Michigan Department of Treasury, working in conjunction with Attorney General Dana Nessel's office, has built a compelling case against Gabel.

He stands accused of multiple counts including filing false tax returns, failing to file crucial income tax returns, and neglecting to submit sales tax returns. The most serious allegation is operating a continuing criminal enterprise, a charge that carries a potential sentence of up to 20 years in state prison, highlighting the profound legal consequences he now faces.

According to the detailed allegations, Gabel orchestrated an illegal marijuana distribution network from approximately 2011 to 2022.

During this period, it is claimed that his operation generated an astounding sum of over $14 million in gross receipts. Crucially, these substantial earnings were reportedly never declared to state authorities, leading to an alleged evasion of more than $1 million in state income and sales tax – funds that are vital for Michigan's public services and infrastructure.

Attorney General Dana Nessel emphasized the state's resolute commitment to upholding the law.

She conveyed that these substantial felony charges demonstrate the authorities' dedication to holding individuals accountable who engage in illegal activities and deliberately circumvent their tax responsibilities. Nessel reiterated her office's ongoing collaboration with the Michigan Department of Treasury, ensuring that all entities operating within the state comply with legal statutes.

Chief Investigator Shelly F.

Edgerton of the Department of Treasury underscored the effectiveness of inter-agency cooperation in dismantling such elaborate schemes. Edgerton noted that the synergy between the Treasury Department and the Attorney General’s office is indispensable in identifying and prosecuting those who attempt to reap profits from unlawful operations while neglecting their civic duty to pay taxes.

She issued a clear warning that such illicit activities will not escape scrutiny and will be met with the full force of Michigan law.

Following his initial arraignment, the legal journey for Gabel is set to continue with a preliminary examination. During this critical phase, a judge will meticulously review the evidence presented to ascertain whether there is sufficient cause to proceed to a full trial.

Given the extended timeframe of the alleged criminal enterprise and the staggering financial figures involved, this case is anticipated to be a complex and closely watched legal proceeding. Its ultimate resolution will undoubtedly serve as a potent reminder of Michigan's robust stance against tax fraud and organized illicit enterprises, particularly as the state navigates the evolving landscape of cannabis regulation.