Watertown Man Pleads Guilty to Tax Evasion
Assistant United States Attorney
US Attorney Brendan V. Johnson announced that Timothy M. Engels, age 60, of Watertown appeared before US District Judge Charles B. Kornmann in Aberdeen on June 9, 2011, and pled guilty to count 3 of an indictment that charged him with Tax Evasion. The maximum penalty upon conviction is five years of imprisonment and up to a $250,000 fine.
Engels was the owner of The Harbor Bar in Watertown, South Dakota. The Harbor Bar was organized as an “S” corporation, and Engels was the sole shareholder of the corporation. Accordingly, pursuant to the relevant internal revenue laws, all income from The Harbor Bar passed directly to Engels, and he was required to report it as income on his personal tax return. Engels admitted that he knowingly omitted income from The Harbor Bar on his 2005 tax returns.
The investigation was conducted by the Criminal Investigation Division of the IRS. The case is being prosecuted by Assistant US Attorney Kevin Koliner.
A presentence investigation was ordered, and a sentencing date was set for September 26. The defendant was released on bond pending sentencing.