Former Starkey Executive Pleads Guilty to Tax Evasion in Minnesota Court

MINNEAPOLIS, MN – A former executive of Starkey Laboratories has pleaded guilty to tax evasion in a Minnesota court.

Jeffrey Lee Longtain, 58, of West Linn, Ore., pleaded guilty to making and subscribing a false return, a felony charge. According to the U.S. Attorney’s Office, Longtain failed to report income he received from Starkey and its subsidiary, Northland Hearing Centers, Inc.

Longtain, who was the Chief Operating Officer and President of Northland from 2006 until his termination in 2015, reported income of approximately $182,915 from Audiometrix, LLC and Socio, LLC, two companies that provided services to Starkey and/or Northland. He also received payments totaling approximately $77,315 directly, and $105,600 was paid to Oregon Golf Club to offset his golf club dues and fees.

Longtain knew that receipt of these payments was a conflict of interest given his position at Northland. To avoid paying additional taxes, he purposely concealed the golf club payments from his tax preparer.

In 2014, Longtain and his colleagues, Jerome Ruzicka and Scott Nelson, realized they had not taken enough money to cover their entire tax obligations, and took additional money from the company. Longtain told Nelson that he needed $115,000 to cover his additional tax payments, but in reality, he only needed $85,000. Nelson and Longtain disguised the $115,000 payment as a loan, but Longtain knew it was income that should have been reported on his 2014 tax returns.

This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Lola Velazquez-Aguilu and Benjamin Langner.

Longtain faces up to 3 years in prison and a fine of up to $250,000. He is currently free on bond and is scheduled to be sentenced on [insert date].

The U.S. Attorney’s Office, District of Minnesota, can be reached at (612) 664-5600 for more information.

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