Cottage Grove accountant charged with tax evasion

A curious news story is coming out of Ramsey County after a Cottage Grove man was recently charged with tax evasion. What makes the story so interesting, however, is that he had previously been charged with embezzlement and the tax evasion charges are stemming from the money that he allegedly took from his former employer, the Archdiocese of St. Paul and Minneapolis. This case raises some questions about just how appropriate the tax evasion charges are.

Though many people in St. Paul may not think that white-collar crimes are that severe, they can come with long prison sentences, huge fines and destroy reputations in mere moments. To heap a tax evasion charge on top of embezzlement charges means that someone who is accused of stealing money from an employer may spend even more time away from his or her family.

As we covered in an earlier blog post, the former financial director of the Archdiocese of St. Paul and Minneapolis became the target of an internal investigation after he was accused of stealing money from the church group. The initial concern was that the evidence that was uncovered in the internal investigation — evidence that was collected outside of the constitutional protections that limit investigating police officers — was later delivered to police. This means that the police and prosecutors may be relying on evidence that they would otherwise have been unable to obtain because it was originally discovered by members of the archdiocese.

Now, the money that internal investigators said was taken is the subject of a tax evasion case. Since the money was taken and investigators likely assume that the Cottage Grove man took it, they are now saying that he should have reported the money as income on his state taxes. Failing to do so has led to the charges of filing fraudulent tax returns and tax evasion.

Source: Minneapolis-St. Paul Business Journal, “Accountant charged with stealing $670K to pay children’s tuition now charged with tax evasion,” Ed Stych, Dec. 10, 2012

Max Keller has won countless jury trial cases involving misdemeanors and felonies, sex crimes, and DWI’s. He is a member of the Minnesota Society for Criminal Justice, which only allows the top 50 criminal defense attorneys in the state as members. Max is a frequent speaker at CLE’s and is often asked for advice by other defense attorneys across Minnesota.

Years of Experience: Approx. 20 years
Minnesota Registration Status: Active
Bar & Court Admissions: State of Minnesota Minnesota State Court Minnesota Federal Court 8th Circuit Federal Court of Appeals State of Maryland

What to Do If You Have Been Charged with a Criminal Offense

The timeline for filing pre-trial motions in a criminal case in Minnesota varies with the type of motion. A motion related to the discovery of evidence or dismissal of a criminal case must be filed at least three days before the Omnibus Hearing. The prosecution is then allowed to respond to the motions, and the court sets the timeline for these responses.
Knowing the tips for interacting with law enforcement as a suspect in Minnesota can keep you from saying or doing something that incriminates you. These tips include understanding your rights while interacting with law enforcement, knowing how to handle search and seizure, and seeking the early intervention of a criminal defense lawyer. You should apply these tips when you are stopped for questioning, a suspect in a criminal investigation, pulled over in a car, and during arrest, arrest processing, and custody.
You may need to hire a criminal defense lawyer even if you have not been charged. A criminal defense lawyer protects your rights when law enforcement officers are investigating you for a crime. Without a lawyer, you might say something that could be incriminating or misconstrued. Your lawyer can engage with the police or the prosecutors and provide evidence that prevents them from filing formal charges. Your lawyer can also go through your case and prepare a defense strategy if there is a possibility of you getting charged.