Brooklyn Park man charged multiple with tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged William Joseph Shocinski Jr., of Brooklyn Park, with two felony counts of possessing untaxed tobacco products, 25 felony counts of filing of false or fraudulent tobacco tax return, and one gross misdemeanor count of knowingly failing to pay tobacco tax. 

According to the complaint, Mr. Shocinski Jr. operated vape shops in multiple cities, most doing business under the name “Cloud X Vapes” or some variation thereof. The complaint states that Mr. Shocinski Jr. evaded paying Minnesota tobacco tax by having products shipped directly to Minnesota and falsely representing to the shipper, Demand Vapes in Buffalo, NY, that Minnesota tobacco tax would be paid, and by having products shipped to Wisconsin and paying their lower tobacco tax rate and then bringing the product to his businesses in Minnesota. Invoices from Demand Vapes allegedly showed thousands of dollars in shipments of taxable tobacco products being ordered by Mr. Shocinski Jr. for his businesses, but the corresponding tobacco tax returns for those businesses showed $0 in tobacco product purchases. The complaint states that Mr. Shocinski Jr. told investigators that he that he would continue to have tobacco products shipped to Wisconsin, transport them to Minnesota, charge himself $0.01, and file a tobacco tax return based on that amount. According to the complaint, between May 2019 and January 2022, Mr. Shocinski Jr. evaded over $700,000 in Minnesota tobacco tax.

The felony charge carries a maximum penalty of five years in jail, a $10,000 fine, or both. Each tax-related gross misdemeanor charge carries a maximum penalty of one year in prison, a $3,000 fine, or both. Defendants are presumed to be innocent unless and until proven guilty.

This is an example of the department’s ongoing efforts to uniformly enforce the state’s cigarette and tobacco laws. For more information on the tax laws related to tobacco products in Minnesota, visit our website. 

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

The Minnesota Department of Revenue has 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 via email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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