Pequot Lakes couple charged with multiple tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Crow Wing County Attorney’s Office recently charged Shannon Marie Steele and Russel Clair Steele, both of Pequot Lakes, each with five felony counts of filing false or fraudulent income tax returns and five felony counts of failing to pay income tax

The complaints allege that the Steeles filed fraudulent income tax returns for tax years 2017 through 2021 and failed to pay the correct amount of income tax in those years. The complaints state that Ms. Steele owned Northern Lakes Rescue, a dog rescue nonprofit organization, where she was the only one with access to the organization’s bank accounts and records. The complaints allege that each year Ms. Steele withdrew thousands of dollars from bank accounts associated with the nonprofit to use for personal expenses such as appliances, video games, airfare, groceries, and jet ski rentals. According to the complaints, the Steeles failed to include these withdrawals as income on their tax returns and avoided paying tax on more than $303,000 in taxable income.

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.