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Nelsons Found Guilty of Tax Crimes
Two Letcher men, Theodore Ted J. Nelson, Jr., 67, and his son, Steven A. Nelson, 45, have been found guilty of tax crimes after a federal jury trial in Sioux Falls, South Dakota.
The trial, which began on May 5, 2015, and ended on May 12, 2015, followed an indictment by a federal grand jury on April 8, 2015. Ted Nelson was charged with one count of conspiracy to defraud the United States, six counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service. Meanwhile, Steven Nelson faced one count of conspiracy to defraud the United States, seven counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service.
The Nelsons stood accused of hiding their ownership of a family farm and business through the creation of over 30 trusts, corporations, LLCs, and other entities. In 2004, they opened bank accounts with false tax identification numbers and Social Security numbers, further evading detection. It was also revealed that the Nelsons had stopped filing income tax returns in 1996 and 1998, respectively.
The Internal Revenue Service – Criminal Investigation led the investigation into the Nelsons’ illicit activities. Assistant U.S. Attorneys John E. Haak and Ann M. Hoffman prosecuted the case.
The Nelsons’ case is a stark reminder of the importance of tax compliance and the consequences of tax evasion. The maximum penalties for their crimes include 5 years in custody and/or a $250,000 fine for conspiracy, 1 year in custody and/or a $1,000 fine for each count of failure to file income tax returns, and 3 years in custody and/or a $5,000 fine for impeding the Internal Revenue Service.
A presentence investigation has been ordered, and a sentencing date has been set for August 17, 2015. Ted Nelson was remanded to the custody of the U.S. Marshals Service, while Steve Nelson was released pending sentencing.
The Grimy Times will continue to follow this case and provide updates as more information becomes available.
Key Facts
- State: South Dakota
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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