Related Federal Cases
Appleton Businessman Sentenced to 24 Months in Federal Prison for Employment Tax Evasion
A 72-year-old Appleton businessman has been sentenced to 24 months in federal prison for failing to pay over $1,000,000 in employment taxes his businesses owed over the course of nearly 14 years.
Douglas Larson, owner and operator of Mods International, later known as Mods Client Services, was sentenced on April 4, 2025, for willfully failing to pay over $1,000,000 in employment taxes his businesses owed. The company manufactured and installed residential and commercial buildings out of shipping containers.
According to court records, Larson spent significant money on luxuries for himself and his wife while failing to pay the employment taxes. Senior United States District Judge William Griesbach highlighted the length and dollar amount of Larson’s crime, as well as his significant history of fraud convictions dating back to the 1970s and continuing through his adult life.
“This defendant withheld taxes from the employees of his businesses but willfully refused to pay the money over to the United States,” said Acting U.S. Attorney Richard G. Frohling. “By doing so, he not only breached the trust of his employees but also caused a loss to every American taxpayer.”
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney Zachary J. Corey prosecuted.
Larson’s sentence was influenced by his failing health. “For over a decade, Douglas Larson chose personal luxury over his obligations to his employees and the tax system,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation remains committed to holding individuals accountable who seek to defraud the government and violate the trust of their employees and the American taxpayer.”
The case serves as a reminder of the importance of paying employment taxes and the severe consequences of failing to do so.
For more information, contact Public Information Officer Kenneth Gales at Kenneth.Gales@usdoj.gov or 414-297-1700.
Mandatory Facts:
Defendant: Douglas Larson
Criminal Charge: Willfully failing to pay over $1,000,000 in employment taxes
City and State: Appleton, Wisconsin
Date: April 4, 2025
Sentence: 24 months in federal prison
Dollar Amount: $1,000,000
Key Facts
- State: Wisconsin
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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