Department of Revenue and Hennepin County Attorney’s Office announce multiple tax charges against Orono man and his business

ST. PAUL, Minn. – The Minnesota Department of Revenue and the Hennepin County Attorney’s Office announced that William Fredrick Ward, of Orono, was recently charged with multiple tax-related felonies. Mr. Ward is charged with six felony counts of failing to file individual income tax returns, six felony counts of failing to pay income tax, and six felony counts of failing to file corporate franchise tax returns. Mr. Ward’s business, Exotic Automotive Inc, is charged with six felony counts of failing to file corporate franchise tax returns.

According to the complaints, department investigators started looking into Mr. Ward and his business after receiving a tip from another state revenue department. Investigators found that Mr. Ward failed to file his individual income tax returns and pay income tax from 2016 through 2021. He also allegedly failed to file corporate franchise tax returns for his business for those years. The complaints state that Mr. Ward intentionally ordered his affairs to avoid attracting attention from taxing authorities. For example, he structured his business as a corporation so payments from other businesses would not trigger those companies to issue a 1099, alerting tax authorities to payments totaling over 3 million dollars. Mr. Ward then allegedly tapped the business’ checking account for personal use making large cash withdrawals, travel spending, dining out, paying credit cards, student loans (for his daughter), and car insurance premiums for five vehicles from the account. According to the complaints, Mr. Ward and Exotic Automotive Inc owe over $700,000 in 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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