Douglas Larson, a businessman from Appleton, was sentenced to 24 months in federal prison for failing to pay over $1,000,000 in employment taxes. Richard G. Frohling, the Acting United States Attorney for the Eastern District, announced the sentencing on April 4, 2025.
Larson, 72, owned and operated Mods International, later known as Mods Client Services. His businesses specialized in constructing residential and commercial buildings using shipping containers. Over nearly 14 years, Larson failed to pay the employment taxes due while spending substantially on personal luxuries.
Senior United States District Judge William Griesbach, during sentencing, emphasized the extensive nature and amount of Larson's crime. Judge Griesbach noted Larson’s long history of fraud convictions starting in the 1970s. "This defendant withheld taxes from the employees of his businesses but willfully refused to pay the money over to the United States,” said Acting U.S. Attorney Frohling. He highlighted that Larson not only violated his employees' trust but also every American taxpayer's trust.
“For over a decade, Douglas Larson chose personal luxury over his obligations to his employees and the tax system,” stated Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office, reaffirming the commitment to holding accountable those who defraud the government.
The IRS Criminal Investigation Division investigated the case, and it was prosecuted by Assistant United States Attorney Zachary J. Corey.
Follow the story for updates on related tax fraud cases.