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For immediate release: Monday, September 15, 2008
For more information: Andy Fergel, Chief Legal Counsel, Department of Revenue and Regulation, 605.773.3311
Hunting Guide Sentenced for Filing False and Fraudulent State Tax Returns
(PIERRE, SD) – A Mobridge hunting guide was sentenced Sept. 12, 2008 to pay nearly $40,000 in restitution and other costs after pleading guilty to two Class 6 felony counts of filing a false or fraudulent sales tax return in an attempt to defeat or evade sales tax and one misdemeanor count of failing to maintain books and records of his business transactions as required by South Dakota law.
Forty-four-year-old Kerry Konold, owner of Outrageous Adventures of Mobridge, was ordered to pay $23,084.15 in sales tax, $9,000 of interest and $6,500 for costs of prosecution, all of which was paid prior to sentencing.
Circuit Judge Scott P. Myren granted a suspended imposition of sentence to Konold on the two felony counts and placed him on probation for a period of three years upon the following terms and conditions:
1. That within six months of the date of sentencing, he serve 60 consecutive days in the Walworth County Jail subject to work release.
2. That he pay a fine of $1,000 on each of the two felony counts.
3. That he pay all tax, penalty, interest and prosecution costs as agreed with the State of South Dakota.
4. The he obey all laws and remain on his good behavior.
5. That he keep all necessary books and records as required by South Dakota law for his current business as well as any other business he may later own or acquire and that he timely comply with all reporting requirements of the South Dakota Department of Revenue and Regulation.
6. That he accurately and timely report all gross receipts and timely pay all sales tax due and owing to the South Dakota Department of Revenue and Regulation.
7. That he pay court costs and be placed under the supervision of the Chief Court Services Officer of the Fifth Judicial Circuit for a period of three years and that he obey all of the conditions placed upon him by said Court Services Officer.
Konold was originally indicted in June 2007 on eleven Class 6 felony counts of filing false or fraudulent sales tax returns during the year 2004 and one Class 1 misdemeanor count of failing to maintain adequate books and records. The charges were the result of an audit conducted by the South Dakota Department of Revenue and Regulation on Konold's hunting and fishing guide business. Under a plea agreement with the State, Konold pled guilty to the two felony charges and one misdemeanor charge. The remaining counts were dismissed.
The case was investigated by the South Dakota Department of Revenue and Regulation’s Investigative Services Bureau and was prosecuted by Special Assistant Attorney General James L. Waggoner.
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