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Nonprofit Life Link III CEO Arrested on Tax Charges

Richard Carter McComb allegedly failed to file individual income tax returns in Minnesota for tax years 2007 through 2009 and now faces six felony tax charges; Life Link III said that it will continue to operate as usual and that the investigation surrounding McComb doesn't involve it.

The leader of a local nonprofit consortium was arrested Thursday in Minneapolis and charged with six felony tax charges.

Richard Carter McComb is CEO of Life Link III-which comprises nine local health-care organizations and provides medical transportation by both ground and air.

According to a criminal complaint filed in Hennepin County District Court, McComb failed to file individual income tax returns with the Minnesota Department of Revenue for tax years 2007 through 2009. McComb did allegedly file federal returns for all three years, claiming residency in Florida-a state that doesn't assess personal income tax. The complaint indicates that he has actually resided in Minnesota all three years.

According to the Hennepin County jail roster, 64-year-old McComb was booked at 9:16 a.m., and bail was set at $250,000. His initial court appearance was scheduled for 8:30 a.m. Friday.

According to the complaint, an investigation "has disclosed significant ongoing efforts" by McComb "to conceal the true nature of his Minnesota residency." He has a post office box in Minneapolis and two vehicles registered within the state-but he has a Florida driver's license that identifies his home as a property he owns in Key West.

The complaint indicates that McComb owes at least $11,000 for the three tax years in question and possibly significantly more. Life Link III indicated in federal tax forms that "contracted CEO" payments of $110,630, $224,640, and $268,680, respectively, were made to McComb's consulting company during the three tax years in question. However, McComb's own federal tax returns for the corresponding years reported adjusted gross income of $47,744, $40,477, and $41,099.

On Thursday, Life Link III said in a press release on its Web site that it will continue to operate as usual. It also confirmed that special agents of the Minnesota Department of Revenue entered Life Link's Minneapolis offices and served McComb with a warrant at about 7:30 a.m. Thursday.

The consortium-which calls McComb "an independent consultant who is currently our CEO"-additionally said: "The investigation concerns Carter McComb and the business entities in which he has a financial interest. As interim CEO, Mr. McComb maintains an office at Life Link III headquarters. The investigation is not about Life Link III and Carter McComb has no financial interest in Life Link III."

The hospitals in the Life Link III consortium are Allina Hospitals & Clinics; Children's Hospitals & Clinics of Minnesota; Fairview Health Services; Hennepin County Medical Center; Regions Hospital; Sacred Heart Hospital in Eau Claire, Wisconsin; St. Cloud Hospital/CentraCare Health System; St. Luke's Hospital; and St. Mary's Medical Center.

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