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Frozen fraud

November 24, 2008

The chilly Upper Midwest has its share of tax fraud. Last week a Minnesota jury convicted a Montana man of criminal failure to pay employment taxes. Francis Leroy McLain was convicted of failing to remit payroll taxes for several nursing services he ran.

Mr. McLain had settled lawsuits in 1998 where he agreed to collect and remit withholding taxes. It sounds like the IRS didn't much appreciate him pulling out of the deal.

In even-colder North Dakota, meanwhile, Timothy Hertel of Fort Yates has been sentenced to a 5-month stay in a halfway house, followed by 2 years of supervised release, for failing to report income he earned from a check cashing business.