Investment Advisor Sentenced To 42 Months In Prison For Tax Evasion
United States Attorney Andrew M. Luger and Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division St. Paul Field Office Shea Jones today announced the sentence of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to 42 months in prison. CARLSON pleaded guilty on September 10, 2014, to two counts of tax evasion for tax years 2010 and 2011.
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 solicited from his father, into a Trust Financial Group (“TFG”) account, that CARLSON treated as his 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 of approximately $1.9 million to the investment fraud victims and his father, CARLSON will also pay approximately $1.2 million in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Tracy L. Perzel prosecuted this case.
This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division.
JOEL WILLIAM CARLSON
Vadnais Heights, MN
• Attempt to Evade and Defeat Tax, 2 counts
• 42 months in prison
• Ordered to pay approximately $3.1 million in restitution