United States Attorney Gregory J. Haanstad announced that on January 8, 2025, Senior United States District Judge William C. Griesbach accepted the guilty plea of Douglas Larson. Larson pleaded guilty to one count of failing to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), violating 26 U.S.C. § 7202.
A one-count information was filed on November 15, 2024, alleging that Larson failed to pay employment taxes for each quarter from January 2018 through September 2021. During this period, Larson did not pay approximately $396,082.77 in employment taxes withheld from his employees' paychecks. According to the plea agreement, Larson owned and operated Mods International, later known as Mods Client Services (Mods), which manufactured and installed residential and commercial buildings using shipping containers.
The plea agreement also revealed that Mods and a related company owned by Larson failed to pay over employment taxes they withheld and owed before and after the specified period. The total tax loss agreed upon in the plea agreement amounted to $1,102,805.13.
Sentencing is set for April 4, 2025, at 10:30 a.m., before Judge Griesbach. At sentencing, Larson faces up to five years in prison and a fine of up to $250,000. He also faces up to three years of supervised release following any imprisonment period.
The IRS Criminal Investigation Division investigated the case, which Assistant United States Attorney Zachary J. Corey is prosecuting.
For additional information contact Public Information Officer Kenneth.Gales@usdoj.gov or call 414-297-1700.
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