Rochester man charged with multiple tax crimes 

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Olmsted County Attorney’s Office recently charged Donyale Demon Gayles-Johnson, of Rochester, with four felony counts of filing false or fraudulent sales tax returns and five felony counts of failing to pay sales tax.

According to the complaint, Mr. Gayles-Johnson operated 4S Entertainment, an unlicensed, after-hours nightclub in Rochester where he charged a cover for entry and for alcoholic drinks. Cover charges and alcoholic drink purchases are subject to sales tax and Mr. Gayles-Johnson allegedly did not collect and send sales tax to the state for multiple periods between tax years 2019 and 2023. The complaint states that Mr. Gayles-Johnson also filed false individual income tax returns for tax years 2019 through 2022.  Mr. Gayles-Johnson allegedly owes more than $40,000 in income and sales taxes, penalties, and interest. 

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. 

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