Owner Of Duluth Dental Practice Pleads Guilty To Tax Fraud

United States Attorney Erica H. MacDonald today announced the guilty plea of GARY JAMES HEDIN, 41, former owner of Downtown Dental Care LLC, a dental practice located in Duluth, Minnesota, for failing to account for and pay over employment taxes to the Internal Revenue Service. HEDIN, who was charged on September 30, 2019, entered his guilty plea on October 22, 2019, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on February 20, 2020.

According to the defendant’s guilty plea and documents filed in court, HEDIN failed to file required tax returns and pay employment taxes withheld from the wages of his employees for tax years 2012 through 2017. HEDIN instead used the money to fund a lavish lifestyle, including vacations, adult entertainment, memberships in private social clubs, and jewelry purchases. HEDIN admitted that he owes $158,958 in unpaid taxes to the IRS for the relevant tax years.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.

Assistant United States Attorney Michelle E. Jones is prosecuting the case.

Defendant Information:

GARY JAMES HEDIN, 41

Duluth, Minn.

Convicted:

• Failure to account for and pay over employment taxes, 1 count

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