Minneapolis man charged with multiple felony tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Edgar Arturo Hernandez-Vasquez, of Minneapolis, with 11 tax-related felonies. He is charged with

• Two felony counts of filing false or fraudulent sales and use tax returns
• Two felony counts of failing to file sales and use tax returns
• One felony count of aiding in the filing of a false or fraudulent sales and use tax return
• Two felony counts of filing false or fraudulent individual income tax returns
• Two felony counts of failing to file individual income tax returns
• Two felony counts of failing to pay income tax

According to the complaint, Mr. Hernandez-Vasquez is the owner of La Ideal Bakery LLC, doing business as (DBA) Pollo Asadero Movil Mexican Grill, located in Minneapolis. The complaint alleges Mr. Hernandez-Vasquez claimed his business was a bakery whose items would not be subject to sales tax under state law. However, investigators allegedly found the business was a restaurant selling taxable prepared food such as chicken wings, tamales, and tacos. The complaint states Mr. Hernandez-Vasquez was informed numerous times that his business was making taxable sales and he was required to collect sales tax and remit it to the state. While acknowledging that responsibility and charging sales tax to customers, Mr. Hernandez-Vasquez allegedly filed false annual sales tax returns showing $0 in taxable sales in 2017 and 2018, had an accountant file his false sales tax return showing the same for 2019, and failed to file any sales tax return for 2020 and 2021. Mr. Hernandez-Vasquez’s business allegedly owes over $124,000 in sales tax, penalties, and interest.

Additionally, the complaint alleges that Mr. Hernandez-Vasquez underreported his income on his individual income tax returns for tax years 2017 and 2018 and failed to file returns and pay income tax for tax years 2019 and 2020. He allegedly owes over $21,000 in income tax.

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

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 tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook and Twitter or by signing up for our email subscription list.