Bayport man charged with 74 felony tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Washington County Attorney’s Office recently charged Karl Evald Auleciems, of Bayport, with 74 tax-related felonies. He is charged with:

• 32 felony counts of failing to file sales and use tax returns
• 32 felony counts of failing to pay or collect and remit sales and use tax
• 5 felony counts of filing false or fraudulent individual income tax returns
• 5 felony counts of failing to pay individual income tax

According to the complaint, Mr. Auleciems operated an unregistered business, KEASons Enterprises, which he used as a conduit to rent out a Lake Elmo property and other properties to short-term renters. Mr. Auleciems allegedly used short-term rental websites to list his properties and then conducted the rental transactions through his business, avoiding the websites while still charging rental sales tax. The complaint alleges that he failed to file sales and use tax returns and pay sales tax for these transactions between April 2017 and May 2020. The complaint states that Mr. Auleciems also fraudulently filed individual income tax returns and failed to pay income tax on his actual earned income for tax years 2015 through 2019. According to the complaint, Mr. Auleciems owes more than $194,900 in unpaid tax, penalties, and interest.

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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