MN Lawyer Gets 18 Mos. for Tax Evasion

Samuel Alfred McCloud was sentenced to a year and a half in prison for intentionally concealing at least $595,000 in income when reporting his taxes.

A Minnesota attorney was sentenced on Thursday to 18 months in prison for one count of tax evasion, according to Minnesota's U.S. Attorney's Office.

Between 2004 and 2006, Samuel Alfred McCloud worked at two Twin Cities law firms-McCloud & Boedigheimer, P.A. and McCloud & Heefner, P.A.-and he intentionally concealed at least $595,000 in income from both the Internal Revenue Service (IRS) and the Minnesota Department of Revenue, the U.S. Attorney's Office said. He was charged for the crime on November 19, 2010, and pleaded guilty on December 9, 2010.

In addition to the prison term, McCloud's sentence includes two years of supervised release, and he must pay back the taxes he owes, plus penalties and interest, the U.S. Attorney's Office said. He owes at least $186,000 in unpaid taxes.

While working at the two law firms, McCloud told clients to write checks directly to him, and he admitted in his plea agreement to depositing or telling others to deposit the checks in his name and under the name of “several sham corporations,” according to the U.S. Attorney's Office.

“Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system and unfairly takes advantage of the individuals and businesses that play by the rules,” Kelly R. Jackson, special agent in charge of the IRS-Criminal Investigation Division's St. Paul office, said in a statement.