A former tax judge with South Dakota roots has been indicted in federal court for nearly $1 million in tax evasion.
Diane Kroupa, 60, and her husband Robert Fackler, 62, were charged together the District of Minnesota for conspiracy, tax evasion, making and subscribing false tax returns and obstruction of an Internal Revenue Service audit.
Kroupa, a University of South Dakota School of Law graduate, was a judge for tax court in Minnesota and later for U.S. Tax Court in Washington, where she served until her retirement in 2014. Fackler was a lobbyist and political consultant at the time for his own company, Grassroots Consulting.
During much of that time, Kroupa was hiding income from the federal government, according to the indictment. Fackler, a lobbyist, allegedly deducted $500,000 in personal expenses, claiming them as business expenses.
Among the expenses were rent and utilities at the couple’s Maryland home, utilities and upkeep on the Minnesota home, Pilates classes, spa and massage fees, jewelry, clothing, wine club fees, Chinese language tutoring, music lessons, computers and vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand.
The indictment also points to other false claims, including a failure to report $44,520 in income from a 2010 land sale in South Dakota. They’re also accused of hiding information from an IRS agent during a 2006 audit.
The indictment says the couple avoided at least $400,000 in taxes through fraud.
“As a former tax court judge, Kroupa dealt regularly with individuals who cheated on their taxes, which makes these allegations particularly reprehensible,” said Chief Richard Weber of the IRS- Criminal Investigation in a prepared statement.
Kroupa and Fackler appeared in court Tuesday in Minneapolis and were released on their own recognizance.
Each tax fraud charge is punishable by up to five years in prison, while the obstruction charge carries up to three years in prison.
http://www.argusleader.com/story/news/crime/2016/04/05/former-tax-judge-charged-tax-fraud/82677842/