Sisseton Man Pleads Guilty to False Tax Returns
Assistant United States Attorney
US Attorney Brendan V. Johnson announced that Edward Red Owl, age 69, of Sisseton, appeared before US District Judge Charles B. Kornmann on June 13, 2011, and pled guilty to one count of making and subscribing a false tax return. Red Owl was indicted on four counts of the same charge by a federal grand jury on January 4, 2011. The maximum penalty upon conviction is three years' imprisonment, a $250,000 fine, and restitution.
In 2007, Red Owl filed a false form 1040, 2006 individual income tax return which was verified by a written declaration that was made under penalties of perjury. In that tax return, Red Owl listed an amount of his taxable income which he knew or did not believe true and correct as to every material matter. Specifically, Red Owl under-reported over $90,000 worth of income he received. The total amount of tax due and owing to the under-reporting exceeded $20,000. The investigation was conducted by Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant US Attorney Thomas J. Wright.
A presentence investigation was ordered, and a sentencing date was set for October 17, 2011. The defendant was released on bond pending sentencing.