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Press Release

Fargo Business Man Has Been Sentenced in Connection with Tax Fraud

For Immediate Release
U.S. Attorney's Office, District of North Dakota

FARGO - U. S. Attorney Christopher C. Myers announced that on March 23, 2016, Mrkonja Redic, 50, Fargo, ND, was sentenced before U. S. District Judge Ralph R. Erickson to serve five (5) years supervised probation and ten (10) months Electronic Home Monitoring after pleading guilty in Dec. 2015 to an Information charging him with Making and Subscribing a False Federal Tax Return. Judge Erickson also ordered Redic to pay $45,000 in restitution to the IRS as well as a $100 special assessment to the Crime Victims Fund.

"Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system," said Shea Jones IRS Criminal Investigation Special Agent in Charge of the St. Paul Field Office. With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their friends and neighbors are doing the same."

On or about Feb. 16, 2010, Redic filed a United States amended tax return for the year 2008, which included a Schedule C, Profit or Loss from Business. Redic also verified under the penalties of perjury that the amended tax return was true and correct. Redic, who owned a scrap metal business in Fargo, falsified the amount of his gross receipts and sales on his federal tax return by $174,654 in an attempt to minimize the amount of taxes he would owe to the IRS. In 2008, Redic had gross sales and receipts of $344,621.00, but only reported to the IRS $169,967.00 in gross sales and receipts. Redic’s under-reporting to the IRS of $174,654.00 in gross sales and receipts resulted in a tax loss to the United States of $45,000.

This case was investigated by the Internal Revenue Service.

Assistant U. S. Attorney Scott Schneider prosecuted the case.

Updated March 23, 2016