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Justice News

Department of Justice
U.S. Attorney’s Office
District of Minnesota

Wednesday, September 10, 2014

Investment Advisor Pleads Guilty To Tax Evasion

United States Attorney Andrew M. Luger today announced the guilty plea of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to two counts of tax evasion for tax years 2010 and 2011. CARLSON, who was charged via information on August 4, 2014, pleaded guilty today before Untied States District Court Judge David S. Doty.

“The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation St. Paul Field Office. “The IRS Criminal Investigation Division, together with the Department of Justice, will investigate and prosecute those who violate our tax system.”

According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds belonging to his father, into a Trust Financial Group (“TFG”) account, which was CARLSON’s personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.

According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.

In addition to paying restitution to the investment fraud victims and his father, CARLSON agreed to pay $1,239,735.35 in restitution to the IRS.

Assistant U.S. Attorney Tracy L. Perzel prosecuted the case.

U.S. Attorney Luger thanked the Internal Revenue Service-Criminal Investigations for conducting the investigation.

Defendant Information:

Vadnais Heights, MN

• Attempt to Evade and Defeat Tax, 2 counts



Updated April 30, 2015