MINNEAPOLIS -- A Minnesota attorney pleaded guilty Thursday in Minneapolis Federal Court to failing intentionally to report at least $595,000 in income on his federal and State income tax returns for tax years 2004-2006.
Appearing before a United States district court judge, Samuel Alfred McCloud pleaded guilty to one count of tax evasion. McCloud was charged on Nov. 19.
In his plea agreement, McCloud admitted concealing the $595,000 from both the Internal Revenue Service and the Minnesota Department of Revenue.
Between 2004 and 2006, McCloud worked at two law firms, McCloud & Boedigheimer, P.A. and McCloud & Heefner, P.A. Yet, he instructed clients to write checks to him directly rather than making them payable to the law firms.
McCloud admitted to then depositing, or instructing others to deposit, those checks into bank accounts held in the name of another person as well as several sham corporations.In addition to failing to report the income, McCloud failed to pay State or federal taxes on it.
The total unpaid taxes due the U.S. from the unreported $595,000 is at least $186,000.
For his crime, McCloud faces a potential maximum penalty of five years in prison. A judge will determine his sentence at a future hearing, yet to be scheduled.
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