Former toy company owner sentenced for failing to pay over federal employment taxes
FOR IMMEDIATE RELEASE
June 12, 2013
MINNEAPOLIS—Earlier today in federal court in St. Paul, the former owner of a toy company in Edina was sentenced for failing to pay over federal employment taxes. United States District Court Judge Paul A. Magnuson sentenced Kim Robert Calkins, former co-owner of Princess Soft Toys, Inc., to 12 months and one day in federal prison on one count of failure to pay federal employment taxes. Calkins was charged on September 11, 2012, and pleaded guilty on September 26, 2012.
In his plea agreement, Calkins admitted that from the third quarter of 2008 to the final quarter of 2010, he failed to pay to the Internal Revenue Services (“IRS”) the employment taxes withheld from employees of Princess Soft Toys. Despite receiving regular notices that the employment taxes were still due, Calkins neglected to pay the amount owed. The total tax loss in this case is $852,361.54.
This case was the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Nicole A. Engisch.
In a related case, on February 8, 2012, Judge Magnuson sentenced Calkins’ wife and former co-owner of Princess Soft Toys, Sandra Lee Calkins, to 66 months in federal prison for defrauding Central Bank and 42 investors out of approximately $9 million. She was charged on April 29, 2011, and pleaded guilty on May 26, 2011.
In her plea agreement, Calkins admitted that between January of 2008 and March 5 of 2010, she falsified financial statements regarding the company in order to renew a $3.25 million line of credit at Central Bank. She specifically admitted including false information relative to revenue and net assets. As a consequence of the fraud, the credit line was renewed, and she made multiple draws against it, totaling $3,575,000. Central Bank suffered a loss of approximately $1.6 million because of her criminal behavior.
Calkins also admitted that between January of 2008 and 2010, she defrauded individuals into investing or loaning money to Princess Soft Toys through false financial statements or other misrepresentations. The total losses to individual investors exceeded $7 million.
This case was also the result of an investigation by the Federal Bureau of Investigation and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Tim Rank.
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.
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