$9,000 fine and house arrest for Kelowna businessman who failed to file his taxes

A Kelowna businessman, who once rubbed shoulders with local politicians, has been fined $9,000 and placed on house arrest after being convicted for failure to comply with income tax law.

Today, May 2, Michael Bradley Matvieshen appeared at the Kelowna courthouse for sentencing after being found guilty of three charges of failing to comply with the Income Tax Act.

“Unfortunately, he has a record that indicates prior noncompliance with the Income Tax Act in similar circumstances,” Crown prosecutor Michael Le Dressay told the court.

The Crown said Matvieshen had failed to file his taxes in tax years 2014, 2015, and 2016.

There was no indication given in court, as to whether Matvieshen had since filed them, how much money was involved, or whether he was in debt to the Canada Revenue Agency.

The Crown said Matvieshen had 31 other counts for failure to comply with the Income Tax Act dating back to 2010 when he was fined $6,000 having been found guilty on six charges.

Again in 2017, he was convicted on six charges for failure to file taxes for both himself personally and various businesses. He was fined $12,500 and sentenced to a day in jail – although didn’t see a cell.

In 2014, the Canada Revenue Agency seized a tractor and some snowmobiles from his Kelowna home to cover some of his tax debt.

For the current conviction, Matvieshen was charged in 2018, but the case has dragged slowly through the courts.

In 2023, BC Provincial Court Judge Michelle Daneliuk said it was “outrageous” and “not acceptable” when both Matvieshen and his lawyer failed to turn up for trial. It was the seventh time the trial had been adjourned.

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The Crown said the penalty for late filing of taxes was a fine no higher than $25,000 and up to a year in jail.

However, while Matvieshen has a repeated history of failing to comply with tax law, the Crown in a joint submission didn’t suggest jail and instead proposed a $9,000 fine and a 7 p.m. to 5 a.m. curfew for two months.

Matvieshen chose not to say anything when given the opportunity to address the court.

Little to no information was given in court as to why Matvieshen failed to file his taxes and neither lawyer offered any reason.

Judge David Ruse gave a brief explanation.

“I understood that Mr. Matvieshen had fairly complicated corporate business activities that unfortunately did not prosper,” Judge David Ruse told the court. “It has resulted in the downturn in his business… that led to one of the difficulties that he had with the Canada Revenue Agency.”

The court heard Matvieshen currently ran a cattle farm, a modular home manufacturing company and a food store at the farmer’s market. According to public records, his business Crafted Fresh Foods is currently “overdue” its annual filings for 2024 and 2025.

Matvieshen was once the CEO and director of Indigenous Roots, a cannabis firm that had high-profile board members including former MP and City of Kelowna councillor Ron Cannan and current Westbank First Nation Chief Robert Louie.

He also ran Indigenous Bloom, one of the first “grey market” cannabis stores that opened on a parcel of Okanagan Indian Band land on Highway 97 between Kelowna and Lake Country.

In 2023, Kelowna firm Oakum Cannabis took legal action against Indigenous Bloom alleging it wasn’t paid $160,000 in share agreements.

In the 90s, Matvieshen made headlines when his company Harvest Environmental Services was accused of burning unlicensed material at the firm’s Kelowna and Prince George sites. The company faced dozens of charges but the case was thrown out after a judge ruled charter rights were breached during the seizure of documents.

The judge gave Matvieshen 90 days to pay the fine.

— This story was corrected at 10 a.m. May 14, 2025, to say that Matvieshen’s company Crafted Fresh Foods is overdue its annual filings for 2024 and 2025, not its tax filings.