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Press Release

Muskego Small Business Owner Sentenced for Tax Evasion

For Immediate Release
U.S. Attorney's Office, Eastern District of Wisconsin

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced on June 27, 2019 that Steven M. Rader (age 37) of Muskego, Wisconsin, was sentenced to five months in federal prison for stealing more than $89,000 from the federal government via a tax evasion scheme that began in 2012. Rader was also ordered to pay more than $195,000 in restitution.   

Rader’s tax evasion scheme related to an entertainment business he owned and operated starting in 2012. Despite the fact that the business generated significant income, Rader failed to report any of that income on his federal tax returns for the years 2012 to 2014. In total, Rader understated his income by over $500,000 and underpaid his taxes by over $89,000. 

Rader also made significant efforts to conceal his tax evasion by filing false amended tax returns and lying to federal investigators about his sources of income. 

While sentencing Rader, U.S. District Judge Joseph P. Stadtmueller discussed the vital importance of adequately and appropriately filing tax returns and stated that the sentence imposed was necessary to promote respect for the law as an institution.

“The honest women and men who pay their taxes dutifully deserve to know that tax cheats face time in federal prison. We are committed to defending the integrity of our government by prosecuting tax crimes aggressively.” said U.S. Attorney Krueger. 

“Tax violations have incorrectly been referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone such as Steven Rader tries to manipulate our nation's tax system," said Tara Sullivan, IRS Criminal Investigation Special Agent in Charge, Chicago Field Office. "The courts have overwhelmingly and continuously shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."

This matter was investigated by the Criminal Investigation Division of the Internal Revenue Service and was prosecuted by Assistant United States Attorneys Julie F. Stewart and Matthew Jacobs.

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Updated June 28, 2019