(WTAQ-WLUK) — A judge sentenced an Appleton businessman Friday to two years in federal prison for failing to pay over $1 million of owed employment taxes.
Douglas Larson, 72, owned and operated Mods International, later known as Mods Client Services, which manufactured and installed residential and commercial buildings out of shipping containers.
According to a news release, over the course of nearly 14 years, Larson did not pay more than $1 million in employment taxes his businesses owed. Instead, he spent “significant money on luxuries for himself and his wife.”
Officials said Larson has a history of fraud convictions dating back to the 1970s.
The judge noted a higher sentence may have been warranted, had it not been for Larson’s failing health.
“This defendant withheld taxes from the employees of his businesses but willfully refused to pay the money over to the United States. By doing so, he not only breached the trust of his employees but also caused a loss to every American taxpayer,” said Acting U.S. Attorney Richard Frohling in the news release.
An IRS agent added, “For over a decade, Douglas Larson chose personal luxury over his obligations to his employees and the tax system. IRS Criminal Investigation remains committed to holding individuals accountable who seek to defraud the government and violate the trust of their employees and the American taxpayer.”
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