(ABC 6 News) — The Minnesota Department of Revenue announced that a Hennepin County District Court judge recently sentenced William Fredrick Ward, of Orono, to serve 30 days in jail.
The court also ordered Ward to pay over $919,000 in restitution in addition to other fines and fees for his failure to file and pay corporate and individual income taxes for years 2016 through 2021. He will also be placed on three years of supervised probation.
Ward and his business, Exotic Automotive Inc. (Exotic) —which was also convicted— were ordered to turn over $800,000 from their bank account that was frozen after the initial charges were filed in March 2023, to the Minnesota Department of Revenue. Ward will be required to pay the remaining $119,000 in restitution as a condition of probation.
In the original charges brought in March 2023, it was alleged that Ward intentionally ordered his affairs to avoid attracting attention from taxing authorities.
The complaint states that Mr. Ward structured his business as a corporation so payments from other car dealers to Exotic would not trigger those dealers to issue a 1099, as they would if the payments were made directly to Ward, alerting tax authorities to payments. Ward would then tap the business’ checking account for personal use.
Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.
Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at [email protected]. Tipsters may choose to remain anonymous.
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