News and Press Releases

News and Press Releases

Man sentenced for failing to pay employment withholding taxes

September 10, 2012

MINNEAPOLIS—Earlier today in federal court in St. Paul, one of the former owners of Gamma Vacuum, located in Shakopee, was sentenced for failing to pay federal income and employment taxes withheld from workers. United States District Court Judge Richard H. Kyle sentenced Stephen Paul Clough to three years of probation, four months of community confinement, and a $25,000 fine for one count of willful failure to pay over tax. Clough was charged on April 27, 2012, and pleaded guilty on May 7, 2012.

Between 2003 to 2010, Clough failed to pay the Internal Revenue Service (“IRS”) appropriate income and employment taxes withheld from the wages of the employees at the company. Clough was solely responsible for Gamma Vacuum’s bookkeeping, including the withholding and payment of payroll taxes. Instead of making those payments, he used the funds to pay company expenses. Gamma Vacuum manufactures pumps and related products. Clough’s criminal behavior resulted in a tax loss to the IRS of $944,134.29.

This case was the result of an investigation by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney William J. Otteson.

Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.

Return to Top















Return to Top

harvest picture

Read about Tribal Justice

Project Safe Neighborhoods

Our nationwide commitment to reducing gun crime in America.


Project Exile: Joint effort to reduce gun violence in Minneapolis.


Help us combat the proliferation of sexual exploitation crimes against children.


Ways you can help children cope with the impact of exposure to violence.

Stay Connected: Visit us on Facebook or Twitter

Facebook Twitter
USAO Homepage
USAO Briefing Room
Justice 101