$3 Million in Cannabis “Social Equity” Fees. A Nonprofit With No Tax Status. A Former City Commissioner Named in a Fraud Suit. Grand Rapids Has Some Explaining to Do.
Six licensed cannabis companies paid into a city-backed equity program for years. The nonprofit created to distribute the funds still has no IRS tax status. A former city commissioner is now named in a fraud and conspiracy complaint. Grand Rapids, Michigan · March 23, 2026 Between 2022 and 2025, six licensed Michigan cannabis companies – Fluresh, Ascend Cannabis, High Profile, and Skymint – collectively paid nearly $2.3 million into Grand Rapids’ Cannabis Social Equity Program. They’re now alleging that the money is largely unaccounted for, and on March 17 they filed an amended lawsuit in Kent County Circuit Court adding fraud and conspiracy charges against two new defendants: Seeding Justice Grand Rapids – the nonprofit created to receive the funds – and former City Commissioner Joe Jones. The companies are seeking a full refund of more than $3 million in payments made since 2022, with interest. The city says it cannot comment due to pending litigation. Jones told Crain’s Grand Rapids