CEO of Medical Device Company Sentenced to Two Years in Prison for Tax Evasion
For Immediate Release
U.S. Attorney's Office, District of Minnesota
MINNEAPOLIS– A Mounds View man has been sentenced to 24 months in prison followed by two years of supervised release and ordered to pay $6,058,980 in restitution for failing to pay payroll taxes for several years, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, Larry Wallace Lindberg, 68, was a pharmacist and the CEO of Midwest Medical Holdings LLC, a Mounds View-based pharmaceutical and medical equipment company. As the owner and CEO of the company, Lindberg was responsible for filing tax returns and paying taxes on behalf of the company. Lindberg failed to pay the Internal Revenue Service (“IRS”) several hundred thousand dollars in federal payroll taxes each quarter. In all, Lindberg owes more than $6 million to the IRS.
Beginning in 2011, the IRS spent years attempting to collect on the tax debt. Lindberg entered into several installment agreements with the IRS in which he agreed to make regular payments towards the tax debt, but ultimately failed to make the payments and defaulted on each of the agreements. When the IRS attempted to collect on the tax debt, Lindberg took steps to evade the collection efforts by hiding his assets from the IRS. Among other things, Lindberg regularly diverted money from his company to other entities and used it to purchase real estate and other assets, and to fund his personal lifestyle. He also put assets in the name of his children, including an airplane, airplane hangar, and two vacation homes in Florida, in order to conceal his ownership and control from the IRS.
Lindberg pleaded guilty on April 21, 2022, to one count of tax evasion. Lindberg was sentenced today in U.S. District Court by Judge Katherine M. Menendez
This case is the result of an investigation conducted by the IRS Criminal Investigation Division.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
Updated December 14, 2022