Minnesota Man Sentenced to Over Eight Years in Prison for Tax Fraud Scheme

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In a significant development, a Minnesota man has been handed a substantial prison sentence of 102 months for his involvement in a wire fraud and false tax returns scheme. The man, Beau Wesley Gensmer of Prior Lake, orchestrated a scheme spanning six years, during which he filed 63 false tax returns on behalf of unsuspecting taxpayers. These fraudulent returns claimed inflated tax refunds.

Court documents and statements presented during the trial reveal that Gensmer hired two tax return preparers, one of whom was based in Anchorage, Alaska. He knowingly provided them with false information, including fabricated business losses and charitable contributions, resulting in the preparation and electronic filing of false returns.

Gensmer would charge his clients approximately 30% commission for each fraudulent refund, ultimately causing the IRS a substantial tax loss of approximately $6.7 million.

As part of his scheme, Gensmer also offered “audit protection services” to clients who were audited by the IRS due to the false tax returns he had helped prepare. During these audits, Gensmer would submit counterfeit documents to further deceive the authorities.

In addition to the prison sentence, Gensmer has been ordered by U.S. District Judge John R. Tunheim to serve three years of supervised release and pay restitution of $4,716,732.35 to the United States.

The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Andrew M. Luger for the District of Minnesota.

IRS Criminal Investigation conducted the thorough investigation into the case, while Trial Attorneys Dominick Giovanniello and Ahmed Almudallal of the Tax Division prosecuted the case.

This sentencing serves as a reminder of the Justice Department’s commitment to combating tax fraud and holding individuals accountable for their actions.

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