The owner of an olive oil bottling company has been charged with benefits fraud, tax evasion, and other crimes.
The Minnesota Department of Revenue announced that the Clay County Attorney’s Office recently charged Christine Mary Conrad, of Moorhead, with six felony counts of filing false or fraudulent income tax returns; six felony counts of willfully failing to pay income tax; six felony counts of filing false or fraudulent sales tax returns; six felony counts of failing to pay sales and use tax and six felony counts of wrongfully obtaining assistance
The complaint states that Conrad filed fraudulent individual income tax and sales tax returns and failed to pay income tax and sales tax for tax years 2019 through 2024.
The complaint alleges that Conrad is the owner of Reese & Riley’s Olive Oil & Bistro Bar and a parent company, Reasons LLC.
Department investigators determined that Conrad had filed tax returns showing taxable income ranging from $17,332 to $28,452.
However, banking information and other financial documents showed that Conrad had made several large purchases during that time that required payments exceeding the income she claimed on her returns.
For example, the annual mortgage payment on her new-construction home was over $44,000, well above the income she claimed to earn.
The complaint states that Conrad also claimed a much higher income on loan applications for a vehicle and a jet ski. When asked about the loan applications, Conrad allegedly told investigators that the dollar amount people put on loan applications doesn’t mean they make that much. She allegedly owes over $123,000 in income tax, penalties, and interest.
Investigators looked at the sales tax filings for Conrad’s business and found she underreported taxable sales and kept more sales tax than what was collected and remitted to the state. She allegedly owes over $55,000 in sales tax, penalties, and interest.
While investigating Conrad’s tax crimes, the complaint states that investigators learned that she was also receiving Supplemental Nutrition Assistance Program benefits since 2019, despite earning income amounts that would make her ineligible to participate in the program.
The complaint states that Conrad wrongfully received over $51,000 in benefits.
In addition to the six felony counts of wrongfully obtaining assistance, Revenue referred this information to the Inspector General at the Department of Children, Youth, and Families.
Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Each wrongfully obtaining assistance felony charge carries a maximum penalty of 10 years in prison, a $20,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.
Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.
Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Anonymous tips can also be submitted to the department by email at tax.fraud@state.mn.us or through the department’s online fraud reporting form.