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Justice News

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

FOR IMMEDIATE RELEASE
Friday, June 12, 2015

Mound Man Pleads Guilty To Tax Evasion

United States Attorney Andrew M. Luger today announced the guilty plea of JAMES SIGANOS, 50, to one count of tax evasion. SIGANOS was charged on May 26, 2015, by felony information, of evading corporate income taxes. He pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been determined.

According to his guilty plea and documents filed in court, SIGANOS was the owner of a carpet-cleaning business located in Mound, Minnesota. As owner of the company, the defendant was responsible for filing federal corporate tax returns on behalf of the company. SIGANOS filed a Form 1120S U.S. Income Tax Return for the calendar year 2009, in which he underreported his company’s gross receipts or sales as $246,166.

In 2009, SIGANOS’ company had approximately $591,013 in gross receipts or sales. To avoid paying taxes on the full amount of his company’s revenue, SIGANOS cashed more than 1,400 checks totaling approximately $410,905 at a check cashing facility in Minneapolis. The result was that the defendant underreported his 2009 income by approximately $344,858. SIGANOS filed no corporate income tax returns for the tax years 2010, 2011, and 2012, resulting in an underreporting of approximately $438,991. The total tax loss caused by SIGANOS is approximately $300,000.

“Tax evasion is not a victimless crime,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office IRS Criminal Investigation. “IRS special agents work diligently to identify and bring to prosecution those who evade their taxes.”

SIGANOS faces up to three years in prison.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.

This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.

 

Defendant Information:

JAMES SIGANOS, 50

Mound, Minn.

Convicted:

  • Tax Evasion, 1 count

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

Component(s): 
Updated June 15, 2015