Repeat Tax Fraud Offender Sentenced To 10 Years In Prison
Defendant carried out multiple tax fraud schemes while confined to the Minnesota Sex Offender Program
United States Attorney Erica H. MacDonald today announced the sentencing of ARTHUR DALE SENTY-HAUGEN, 51, for orchestrating a years-long tax fraud conspiracy while confined to the Minnesota Sex Offender Program. SENTY-HAUGEN, who pleaded guilty on January 23, 2018 to one count of conspiracy to defraud the United States, was sentenced earlier today to 10 years in prison before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
“Mr. Senty-Haugen’s lengthy criminal history and flagrant disregard for the law and the criminal justice system was appropriately addressed by this significant prison sentence,” said U.S. Attorney Erica MacDonald. “We appreciate the investigative work of our partners at the IRS and their dogged pursuit of this serial fraudster.”
“Today's sentencing of Arthur Senty-Haugen continues to emphasize the diligence of the Internal Revenue Service and U.S. Attorney’s Office in their continued pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system,” said Acting Special Agent in Charge Gabriel Grchan, IRS Criminal Investigation of the St. Paul Field Office. “Be assured that IRS Criminal Investigation Division, together with our law enforcement partners, will hold those who engage in similar behavior fully accountable, especially those like Senty-Haugen who repeatedly commit fraud.”
According to the defendant’s guilty plea and documents filed in court, since 1994, SENTY-HAUGEN has been confined to the Minnesota Sex Offender Program (“MSOP”) in Moose Lake, Minnesota. Beginning in early 2012 through late 2017, SENTY-HAUGEN devised and participated in a scheme to obtain money from the U.S. government by filing false federal income tax returns claiming fraudulent refunds on behalf of fellow clients of the MSOP (“the filers”). As part of the scheme, SENTY-HAUGEN prepared and filed the false tax returns using the filers’ names and social security numbers, as well as false wage and federal income tax withholding information. SENTY-HAUGEN enlisted the help of other individuals not confined at MSOP to assist him and the filers in preparing and filing the fraudulent returns as well as collecting and transferring the illicit proceeds. SENTY-HAUGEN admitted to filing a total of 92 fraudulent income tax returns for tax years 2011 through 2016, seeking more than $550,000 in refunds to which the filers were not entitled.
In 2000 and 2013, SENTY-HAUGEN was prosecuted in state court in Carlton County on fraud-related offenses. Additionally, in 2004, while confined at MSOP, SENTY-HAUGEN was indicted in federal court for tax fraud conspiracy, a scheme that was similar to the instant offense, and was sentenced to 57 months in prison followed by three years of supervised release. SENTY-HAUGEN began his new fraud scheme just two days after his term of supervised release expired.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, and the Minnesota Department of Human Services, Office of Special Investigations.
Assistant U.S. Attorneys Amber M. Brennan and Julie E. Allyn prosecuted the case.
ARTHUR DALE SENTY-HAUGEN, 51
MSOP, Moose Lake, Minn.
- Conspiracy to defraud the United States, 1 count
- 120 months in prison
- Three years of supervised release
- $247,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600