Shimon Shaked, Tax Evasion, MN 2024

United States Attorney Erica H. MacDonald has charged Shimon Shaked, 56, of Duluth, Minnesota, with tax evasion and other serious financial crimes. The charges stem from an alleged scheme where Shaked is accused of evading over $800,000 in federal income taxes.

According to the indictment, Shaked operated several t-shirt and souvenir shops in Duluth’s Canal Park under the guise of his daughter as the nominal owner. He failed to report substantial revenue from these stores on tax returns between 2013 and 2015, instead reporting it on his daughter’s income tax returns.

Shaked is also accused of using company funds for personal expenses, including child support and an apartment in Duluth. The investigation revealed that he did not report or pay taxes on the majority of cash sales from the Duluth Stores, further inflating the alleged tax evasion figures.

In 2017 and 2018, Shaked expanded his empire to Michigan, opening two more stores. He failed to file a 2018 tax return, adding to the charges against him. Assistant U.S. Attorney Joseph H. Thompson is leading the prosecution in this case.

The investigation into Shaked’s finances was conducted by the Criminal Investigation Division of the IRS. If convicted, he could face significant prison time and fines. The charges are merely accusations, and Shaked is presumed innocent until proven guilty in court.