A De Smet, South Dakota couple has been slammed with a tough federal sentencing for their involvement in a massive tax evasion scheme. United States Attorney Ron Parsons revealed that Chief Judge Roberto A. Lange of the U.S. District Court, Kansas, handed down the penalties on March 18, 2026.
Charles Johnson, 45, and his partner, Emily Thompson, 38, were both convicted of Willful Failure to Collect or Pay Over Employment Tax and Aiding and Abetting. According to prosecutors, the duo dodged over $600,000 in employment taxes, a criminal offense that caught the attention of federal prosecutors.
The couple’s scheme was unveiled after an exhaustive investigation by the IRS Criminal Investigation Division. Johnson, who owned a local construction company, and Thompson, his assistant, were accused of systematically skimming funds from payroll to evade taxes. The feds say they used various methods to hide their tracks, including off-the-books payments and fictitious employee records.
In addition to substantial prison time, the couple was also sentenced to home confinement during their release period. The harsh penalties reflect the severity of the offense and send a clear message to other potential tax evaders.
Attorney Parsons emphasized the importance of holding individuals accountable for such crimes. ‘Tax evasion is not a victimless crime,’ he stated. ‘It robs the government of much-needed revenue and can lead to serious economic consequences.’
The De Smet community was shocked by the news, as Johnson and Thompson were well-known figures in the town. However, local residents expressed relief that justice had been served, with many hoping this case would serve as a deterrent to others.
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Key Facts
- State: Kansas
- District: District of Kansas District of Kansas
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: DOJ Press Release
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