MILWAUKEE – Richard J. Clark, 71, of Mukwonago, Wisconsin, is headed to federal prison after admitting to a years-long scheme to avoid paying his taxes. Clark was sentenced on May 21, 2019, to 14 months behind bars, followed by three years of supervised release, for dodging over $400,000 in federal income taxes. He’s also been ordered to cough up $213,000 in restitution to the IRS – a fraction of what he owes, but a start.
The scheme unfolded between 2008 and 2013, while Clark operated Foremost Realty, LLC, a southeastern Wisconsin real estate business specializing in foreclosed properties. According to U.S. Attorney Matthew D. Krueger, Clark raked in approximately $1.6 million in commissions during those years. But instead of reporting that income to the IRS, Clark filed tax returns claiming either zero income or minimal amounts, effectively sticking a middle finger to the tax system.
This wasn’t a one-time lapse in judgment. The IRS’s criminal investigation division dug up a history of tax avoidance, revealing that Clark was previously embroiled in a civil action brought by the Department of Justice concerning his 2002-2007 tax returns – where he similarly reported no income. This suggests a pattern of deliberate and calculated evasion, not simple accounting errors.
At sentencing, Clark attempted to explain his actions, claiming he once subscribed to “tax-protestor” beliefs. He told the court he’d abandoned those views and now intends to “make amends” and repay the taxes he owes. Whether that’s a genuine change of heart or a desperate attempt to lessen his sentence remains to be seen. The judge wasn’t swayed enough to hand down a lighter penalty.
Assistant United States Attorney Matthew L. Jacobs prosecuted the case, building a solid case based on financial records and the IRS investigation. While $213,000 in restitution is ordered, the IRS will likely pursue the full $400,000+ owed, potentially through asset seizure. This case serves as a warning: dodging taxes isn’t a victimless crime, and the IRS has the resources and the will to pursue even long-running schemes.
Clark’s sentence sends a clear message to others tempted to skirt their tax obligations. The Grimy Times will continue to follow this case, tracking the restitution payments and any further legal developments. Tax evasion is a serious federal offense, and those who engage in it will face the consequences, even if it takes years to catch up with them.
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Key Facts
- State: Wisconsin
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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