StateofMinnesota

CountyofWashington

DistrictCourt
10thJudicialDistrict
ProsecutorFileNo.
CourtFileNo.

StateofMinnesota,

CR-2015-221
82-CR-15-1075

COMPLAINT

Plaintiff,

Summons

vs.
DAVIDWEBSTERECKBERGDOB:08/31/1951
5055NormandaleAvenueN
Stillwater,MN55082
Defendant.
The Complainant submits this complaint to the Court and states that there is probable cause to believe
Defendantcommittedthefollowingoffense(s):
COUNTI
Charge:Taxes-failuretopayorcollect-F
MinnesotaStatute:289A.63.1(b),withreferenceto:289A.63.1(b)
MaximumSentence:5years,$10,000orboth
OffenseLevel:Felony
OffenseDate(onorabout):02/28/2010to02/05/2012
Control#(ICR#):20120014
Charge Description: willfully attempt to evade or defeat a tax law by failing to remit a tax when required to
dosoSalesandAlcoholTaxduetobecollectedandremittedonorbeforeFebruary5,2011
COUNTII
Charge:Taxes-failuretopayorcollect-F
MinnesotaStatute:289A.63.1(b),withreferenceto:289A.63.1(b)
MaximumSentence:5years,$10,000orboth
OffenseLevel:Felony
OffenseDate(onorabout):02/28/2010to02/05/2012
Control#(ICR#):20120014
Charge Description: willfully attempt to evade or defeat a tax law by failing to remit a tax when required to
dosoSalesandAlcoholTaxduetobecollectedandremittedonorbeforeFebruary5,2012
COUNTIII
Charge:Taxes-failuretopayorcollect-F
MinnesotaStatute:289A.63.1(b),withreferenceto:289A.63.1(b)
MaximumSentence:5years,$10,000orboth
OffenseLevel:Felony
OffenseDate(onorabout):02/28/2010to02/05/2012
1

Control#(ICR#):20120014
Charge Description: willfully attempt to evade or defeat a tax law by failing to remit a tax when required to
dosoNon-ResidentEntertainmentTaxduetobecollectedandremittedonorbeforeFebruary28,2010

STATEMENTOFPROBABLECAUSE

TheComplainantstatesthatthefollowingfactsestablishprobablecause:

I,JeffSlater,amamanagerandsupervisorfortheMinnesotaDepartmentofRevenue.Mydutiesinclude
responsibilityfortheCriminalInvestigationDivision(CID)oftheMinnesotaDepartmentofRevenue
(MNDOR).MNDOR/CIDisresponsibleforcriminalinvestigationsintoallegedviolationsofthetaxlawsof
theStateofMinnesota.InJanuary2012,theOfficeoftheWashingtonCountyAttorneyinStillwater,
MinnesotasoughttheassistanceofMNDOR/CIDforpossiblefelonytaxviolationscommittedbyDavid
WebsterEckberg,theDefendanthereinbyandthroughcorporateentitiesofwhichhewastheprincipal.
ThosecorporateentitiesincludedtheLumberjackDaysFestivalAssociation(LDFA)andSt.CroixEvents,
Inc.(SCE).PossibletaxviolationshadcometolightasaresultofaninvestigationbytheStillwaterPolice
DepartmentandtheWashingtonCountySheriff'sOfficeintoeventsandactivitiesoftheDefendant
surroundingtheoperationbytheDefendantofalargecommunityfestivalinStillwater,Minnesotaknownas
LumberjackDaysthatwasoperatedbyandwiththesebusinessentitiesrunbytheDefendant.Aspartof
thatinvestigationtheWashingtonCountyAttorney'sOfficealsoretainedtheserviceofaprivateforensic
accountingentity.TheMNDORcasewasassignedtoInvestigatorMichaelMoreheadofCID.Morehead
conductedanextensiveinvestigationofmanyaspectsoftheoperationoftheLumberjackDaysactivities
bytheDefendant.Moreheadputseveralaspectsofthecriminalrevenueinvestigationonhiatus
subsequenttotheDefendantbeingcriminallychargedwithmultiplefelonycountsinWashingtonCounty
DistrictCourt.UponconclusionofthatprosecutionwiththeDefendant'sconvictionforfelonyissuanceof
worthlesschecksMoreheadresumedtheinvestigation.
Ihavereviewedthefiles,recordsandresearchoftheinvestigationconductedbyAgentMorehead.Based
upontheinvestigationofMoreheadandthefilesandrecordsreferencedinthisComplaint,Ibelievethe
followinginformationtobetrueandcorrect.
TRUSTTAXESGENERALLY
SalesTax,AlcoholTaxandNon-ResidentEntertainment(NRE)Taxesaretrusttaxes.Anyentitythathas
salesoractivitiessubjecttotrusttaxesmustregisterwiththeMinnesotaDepartmentofRevenue.MNDOR
assignsabusinessIDnumberandsetsupfilingandremittingperiods.Boththebusinessandbusiness
ownersareresponsibleformeetingallfilingandremittanceobligations.MNDOReffectivelypartnerswitha
businessand"trusts"thebusinesstocollecttaxesandturnthemovertoMNDOR.Thetaxarisesthe
momentataxablesaleismadeoratransactionoccursandimmediatelybecomesthepropertyofthe
MinnesotaDepartmentofRevenue.Thetaxesaretobesetasideandheldintrustbythevendoruntil
remittedtoMNDOR.ForNRETaxesthetaxisgenerallywithheldfromtheadvancepaymentmadetothe
entertainerbythepromoter.MostentertainmentcontractslisttheNRETaxaswithheldcausingtheNREtax
tocomeintoexistencethemomentthecontractpaymentismade.TrusttaxmoneybelongstotheStateof
Minnesotathemomentitcomesintoexistence.Thefailuretoremitatrusttaxisakintofelonytheftof
governmentfunds.WillfulfailuretoremittrusttaxesisafelonyviolationofMinn.Stat.289A.63(l)(b).
LDFAwasa501(c)(4)non-profitentitythatconductedactivitiessubjecttoMinnesotaSalesTax,Alcohol
Tax,andNRETax.IthadalegaldutytoregisterwithMNDORandcomplywithallMNDORrequirements
includingfilingandremittingrequirements.LDFAneverregisteredwithMNDOR.ItcontractedwithSCEas
itsagentorotherwisesimplyallowedSCEtohandleitsaffairs.DelegationofdutiestoSCEdidnotrelieve
LDFAanditsofficersfromliabilityfortaxes.SCE,aprofessionaleventmanagementbusiness,is
registeredwithMNDORforavarietyoftaxesincludingSalesTax.IttookonLDFA'staxfilingdutiesas
evidencedbyitsfilingofLDFA'sFederalForm990'sandmultiplerequestsforlegaltaxadviceregarding
SCE'sneedtocollectandremitSalesTaxforLDFAevents.LDFA,SCE,andtheirrepresentativethe
Defendantwererequiredtoremitalltaxeswhendue.BothorganizationsandtheDefendantfailedtomeet
3

thisobligation.
SALESANDALCOHOLTAXINVESTIGATION
MNDOR/CIDhasfoundthroughexperiencelargefestivalsoperatedbypromotersarerarelyexemptfrom
SalesandAlcoholTaxes.WhilereviewingitemsseizedfromtheDefendant'shomewithasearchwarrant
Moreheadnoteda1999lettertoDefendantfromhisattorneyCassWeil.Acopyofthatletterwassentto
theDefendantwitharequesthewaiveattorney/clientprivilegesoMoreheadcouldinterviewhisattorney.
ThewaiverwassignedbytheDefendant.ThisledtoaninterviewoftheattorneysbyMorehead.
Weilwasgivenacopyofhis1999letterregardingSalesTax.Weilstronglydeniedhisletterwasalegal
opinionthatLDFAwasnotsubjecttoSalesTax.Hestatedhewasnevergivenenoughinformationabout
theoperationofLDFAtorenderalegalopinion.HestatedtheletterdidnotstateLumberjackDaysFestival
wasexemptfromMinnesotaSalesTax.WhenhewasaskedforanewSalesTaxopinionin2011he
referredtherequesttoYuriBerndt,ataxexpertattorney.
YuriBerndtwasshownbyMoreheadhis2011letterregardingSalesTaxforLDFA.Hestatedhewasnever
askedforafulllegalopinionastotheSalesTaxliabilityofLDFAin2011.Heindicatedhewasnevergiven
enoughinformationtorenderalegalanalysisofLDFA'sliabilityforSalesTax.NeitherMr.BerndtnorMr.
WeilknewtheDefendantwasfilingFederalForm990'slistingLDFAasa501(c)(4)non-profitratherthan
as501(c)(3)non-profit.MoreheadgaveBerndtsomefactsabouttheoperationofLumberjackDays
FestivalanditsrelationshipwithSt.CroixEvents,Inc.BasedonthatinformationBerndtstatedLumberjack
DaysFestivalAssociationwouldbesubjecttoSalesTax.
SalesTaxAuditActivity
DORemployeeDemkoconductedaSalesTaxauditofSt.CroixEvents,Inc.fortaxyears2008through
2010startinginFebruary2011.Shewasinterviewedaspartoftheinvestigation.Sheinterviewedthe
Defendantandcorrespondedwithhimviaphone,mailande-mailsfromFebruary2011untiltheaudit
closedon10-24-2011.DemkowastoldbyorledtobelievebycommentsmadebytheDefendantany
SalesTaxesforeventsmanagedbySt.CroixEvents,Inc.weretheresponsibilityofvendorsattheevents
orcustomersofSt.CroixEvents,Inc.TheDefendantspecificallytoldherthattherewerenoadmission
chargesforLDFA.HernotesindicateshewasledtobelieveLumberjackDaysFestivalAssociationwasa
501(c)(3)non-profit.Duringherauditsheraisedissuesaboutthedifferencebetween2009depositsand
revenues.2009totalrevenueswereatleast$200,000lowerthantotaldeposits.TheDefendantsuggested
shorttermloansfromcreditcardsmightexplainthedifference.Sheconcludedherauditfinding$899.48in
taxesalongwithinterestandotherchargesforatotalof$1,114.57.ThisamountwasassessedtoSt.Croix
Events,Inc.on10-14-2011.BasedontheDefendant'sstatementssheneverlookedatSalesTaxesfor
beveragesalesoradmissions.TheDefendantwrotealettertoMNDORseekinganabatementof
penalties.Healsostatedhenowfullyunderstoodhistaxobligationsandwouldcomplywiththeminthe
future.Hisrequestforpenaltyabatementwasgranted.ThedebtfromtheDemkoSalesTaxauditremains
outstanding.DemkowascontactedshortlyaftertheCIDinvestigationstarted.Shewassurprisedtolearn
LDFAchargedadmissiontosomeofitsevents,soldbeerandpop,thatitrelieduponSt.CroixEvents,Inc.
tohandleallofitstaxmattersanditwasnota501(c)(3).
SalesTaxAnalysisandConclusions
Boththe1999andthe2011legalopinionletterdiscussaspectsofMinnesotaStatute297A.Thestatute
wasrewrittenafter1999andthepertinentreferencesmadeinthe1999letterwererecodifiedunder
297A(14).Thebasicrequirementsremainedthesame.
297A(14)(a)(1-2)requiresanon-profitkeepitsownbooksanduseallnetproceedsforcharitable,
religiousoreducationalpurposes.Thatlaterpartofthestatutedescribesa501(c)(3)non-profit.LDFAwas
a501(c)(4)non-profitandhadnorestrictionsonfundingonlycharitable,religiousoreducationalentities.
LDFAwascreatedprimarilybyStillwaterbusinesspeopleforthepurposeofholdingafestivaltobring
peopleandmoneytoStillwater.
297A(14)(b)(2)statesallprofitsmustbeusedexclusivelyforcharitable,religious,oreducationalpurposes.
4

LDFAboardmembersdescribedtheLDFA/SCEcontractasariskandrewardcontract.SCEtookin
whateverprofitscouldbemadefromtheevent.Thereisnorecordofanymoneyevergoingtoany
charitable,religiousoreducationalentityoreverbeingintendedtogotosuchentities.
297A(14)(b)(3)requiresseparateaccountingrecords.NosuchrecordsforLDFAhavebeenfoundtoexist.
Thevariousrecordsdiscoveredtodatearesocomingledwithotherrecordsastomakearealistic
accountingofanyentitynearlyimpossible.
297A(14)(b)(7)makesLDFAineligibleforSalesTaxexemptionsinceitenteredintoariskandreward
contractwithSCEanditsannualbenefitswerelessthanthetaxesthatwouldhavebeengenerated.
297A(14)(c)excludesnon-profitsthatsharenetearningswithprivateindividuals.LDFAclearlyintendedto
shareprofitswithSCE.
LDFAsoldbeerandotherbeveragesatitsfestivals.MNDORfilesassociatedwiththiscasehavecopies
ofliquorpermits,informationfrombeervendors,excerptsfromacriminalcomplaintandtestimonyfrom
manywitnesses.FanfareAttractionsrecordsshowhowmuchmoneywascollectedfromboothsmaking
taxablesales.UsingthisinformationtheSalesTaxDivisionstaffwasabletomakeestimatesoftaxes
owed.
TheDefendantisabusinesspersonwhohasbeeninthepromotionbusinessfordecadesandwho
routinelyfiledFederalForm990'sforhisclient.HefailedtofileandremitSalesandAlcoholTaxesforall
yearsthatSCEoperatedtheLumberjackDaysFestival.SCE'staxobligationstransferpersonallytothe
Defendantsinceheisanofficerandowner.TheSalesandAlcoholTaxdebtexceeds$100,000andmay
bemorethan$121,000fortheyearscoveredbyMNDOR'sinvestigation.
NON-RESIDENTENTERTAINERSTAXINVESTIGATION
Non-ResidentEntertainerTaxAuditActivity
ReviewofSt.CroixEvents,Inc.filesnotedanoutstandingdebtforNon-ResidentEntertainerTax(NRE).An
NREauditwasstartedin2008aftertheMNDORWithholdingDivisionwasalertedtoNREproblemswith
St.CroixEvents,Inc.Non-ResidentEntertainersTaxismandatedbyMNStat.290.920.Itisa2%taxonthe
grossamountofmoneypaidtoentertainersfromoutsideofMinnesota.Subd.7oftheStatutemandates
thetaxbewithheldatthetimeofpaymentbythepersonorentitymakingthepaymenttothenon-resident
entertainer.ItisthereforeaWithholdingtaxandtheMNDORWithholdingDivisionadministersit.Sudb.7
statesMNStat.289A.63,thecriminalpenaltiesstatute,appliestoMN.Stat.290.9201.Sudb.8statesthat
NRETaxmustbedepositedwiththeCommissionerofRevenue.Asatrusttaxitautomaticallycomesinto
existencethemomenttheentertaineragreestoacontract,paymentismadeandmoneyisdeducted.The
taxiswithheldfromthecontractpaymentlikeanyotherwithholdingtrusttaxandislegallythepropertyof
MNDOR.Thepromoteris"trusted"toretainthetaxandremititaccordingtoMNDORrequireddeadlines.
AnNREdepositformandtheNRETaxmustbedepositedwithMNDORbythelastdayofthemonth
followinganyperformance.ThepromoterisrequiredtogiveeachentertaineraForm1099-MISC.The
promotermustfileanannualformsummarizingthepreviousyear'sNREwithholdingforallevents.The
promoterisrequiredtolistall1099-MISCsissuedonannualform.TheformisduebyFebruary28.
AnNREauditbeganafterentertainersfiledfortheirNRE2007taxrefundsandnoNREformswerefound
foreitherLumberjackDaysFestivalAssociationorSt.CroixEvents,Inc.MessageswereleftwithSt.Croix
Events,Inc.onJune8,2008,January8,2009,andFebruary11,2009.TheDefendantwasfinallycontacted
onFebruary12,2009.Heindicatedhewouldbemeetingwithhisaccountantson2-17-2009.On4-252009anauditor'snotestatestheDefendantadmittedSt.CroixEvents,Inc.paidentertainers.Thenote
statesDefendantadmittedlearningin2008thatSt.CroixEvents,Inc.wasresponsibleforNRETaxes.Mr.
EckbergretainedattorneyYuriBerndttohandletheNREmatterseffective5-12-2009.Twelvemorenotes
afterMr.Berndtwasretaineduntil6-7-2010documentrepeatedeffortsbytheauditorstobringthe
Defendantintocompliance.
TheWithholdingDivisioncompletedaNREauditonSt.CroixEventsfortaxyears2006through2009.The
auditresultedinataxdebtof$14,780.70,includingpenaltiesandinterest,effectiveOctober14,2010.The
5

Defendantfiledanappealaskingtheoveralldebtbereduced.ThetaxeswerenotremittedandonApril22,
2011,aCollectionsDivisionDemandtoPayletterwasissuedtoSt.CroixEvents,Inc.TheCollections
letterofferedapaymentplanfortheNRETaxanditappearsthatSt.CroixEvents,Inc.enteredintoa
paymentplanshortlythereafter.TheDefendant'sappealletterstatedhewasnowawareofhisNRE
obligationsandwouldcomplywithallfutureNREobligations.OnMarch1,2011,theDefendant'sappeal
wasdenied.The2011festivalwasheldandNRETaxesforthatyearwerewithheld.Norequiredforms
werefiledandnoNRETaxeswereremittedfor2011.InNovember2011St.CroixEvents,Inc.wasin
defaultforits2006-2009NREtaxesandthepaymentplanwasterminated.TheNREdebtforthoseyears
remainsoutstanding.
St.CroixEvents,Inc.didfileandremitrequiredNRErelatedformsandtaxesfortaxyear2010.This
establishedtheDefendantknewofhisobligations.Nofilingsortaxremittanceshavebeenreceivedfortax
year2011,thelastyearSt.CroixEvents,Inc.heldaLumberjackDaysFestivalusingoutofstate
entertainers.
T.E.A.ProductionsisownedandoperatedbyJackThibault.Hewasissuedasubpoenafortestimonyand
recordsandwasinterviewed.Hedescribedhimselfasatalentbuyerwhohelpspairupentertainerswith
events.HehasworkedwiththeDefendantformanyyearsliningupmusicalactstoperformatLumberjack
Days.HeprovidedsomerecordscoveringcontractsforLumberjackDaysFestivalsin2008,2009and
2011.HewasshownflyersforLumberjackDaysFestivalsin2009and2011.Hepointedoutthemusical
groupshearranged.In2009CreedenceClearwaterRevisitedplayedonFridaynightJuly24th.The
contractwasfor$55,000less2%MinnesotaStateEntertainersTax.Hefurnishedacopyofthecontract
thatincludedthe2%Withholding.OnSaturdayJuly25,2009TheWallflowersperformedasthemainact.
Hethoughttheircontractwasfor$50,000and2%wouldhavebeenwithheld.Healsoarrangedasmaller
act,theBottleRockets,forafeeof$2,500.The2%Taxwouldalsohavebeenwithheldfromtheircontract.
In2010,thebandChicagoperformedonJuly24th.Theirfeewas$100,000andthecontractclearlystated
a2%MNEntertainersTaxwaswithheld.Mr.Thibaultprovidedacopyofthecontractlistingthe2%
Withholding.theDefendantfiledandremittedNREformsandtaxesfor2010performers.Thisestablishes
heknewofhisfilingandremittingobligations.
In2011CollectiveSoulwasthemainactonFridayJuly22nd.Theirfeewas$50,000lessthe2%MN
EntertainersTax.Mr.Thibaultsuppliedacopyofthecontractshowingthewithholding.Thatactwasrained
out.ThestatusoftheNREisnotknownatthistime.OnSaturdayJuly23themainactwasSmashMouth.
Mr.Thibaultrecalledtheirfeewas$50,000andtherewouldhavebeena2%MNEntertainmentTax
withholding.
Mr.ThibaultwasshownvariousNREforms.Hestatedhisofficemanageralwaysmadesurethepromoter
hadtheseformsandiftheydidnothavethemshewouldsendthemout.Mr.ThibaultstatedtheDefendant
knewabouttheMinnesotaNon-ResidentEntertainersTaxrequirementsformanyyears.
AttorneyInterviewRelatingtoNRETax
Oneofthetopicsdiscussedwithdefendant'sattorneyswasNRETaxes.Mr.Berndtconfirmedhewas
retainedinaboutMayof2009bytheDefendanttorepresenthimbeforetheMinnesotaDepartmentof
RevenueregardingissuesrelatedtoNon-ResidentEntertainerTaxes.Heindicatedhefullybriefedthe
DefendantonthetopicandtheDefendantunderstoodhisNon-ResidentEntertainerTaxobligations.
EvidenceshowstheNREformsfor2009wereneverfiledandNRETaxeswereneverremittedfor2009.
TheDefendantadmitsheknewin2008ofhisNREobligations.Hewasrepresentedbyacompetent
attorneypriortothe2009festivalwhostatedtheDefendantwasfullyinformedofhisNREobligations.
TheDefendantasashareholderandoperatorofSt.CroixEvents,Inc.,aMinnesotaS-Corporation
operatingasapromotionbusiness,willfullyfailedtoremitannualSalesTaxwiththeMinnesotaDepartment
ofRevenuefortheyears2010and2011inviolationofMNStat.289A.63Subd.1(b).MNStat.289A.63A
Subd.1(b)states"Apersonrequiredtopayortocollectandremitatax,whowillfullyattemptstoevadeor
defeatataxlawbyfailingtodosowhenrequired,isguiltyofafelony."TheDefendantispersonally
6

responsibleforremittingalltaxesassociatedwiththeS-Corporation,St.CroixEvents,Inc.TheDefendant
tookonresponsibilityforhandlingthetaxrelatedmattersofLumberjackDaysFestivalAssociation.Every
yeartheDefendantoperatedafestivalhehadSalesTaxobligations.Eachyearthatsalestaxesarenot
remittedisconsideredaseparatecrime.Ataminimumhewasrequiredtoremit,byFebruary5thallSales
TaxesandrelatedAlcoholTaxesforthepreviousyear.
Fortheyear2010theDefendantoperatedaMinnesotaS-CorporationknownasSt.CroixEvents,Inc.,
whoseprimaryoffices,likeDefendant'shomeaddress,werelocatedinWashingtonCounty.St.Croix
Events,Inc.actedaspromoterforvariouseventsincludingLumberjackDaysFestivalheldinStillwater,
Minnesota.St.CroixEvents,Inc.handledallkeyaspectsoftheoperationofLumberjackDaysFestival
includingtaxmatters.Morethan$204,000insalessubjecttoMinnesotaSalesTaxandmorethan
$119,000insalessubjecttoAlcoholTaxesweremadeduringLumberjackDaysin2010.St.CroixEvents,
Inc.kneworshouldhaveknownasaprofessionalpromoterthesalesmadebyLumberjackDaysFestival
weresubjecttoMinnesotaSalesTaxandrelatedAlcoholTax,therebyrequiringtheDefendanttoremitan
estimated$17,255inannualSalesandAlcoholTaxesnolaterthanFebruary5,2011totheMinnesota
DepartmentofRevenue.TheDefendantwillfullyfailedtoremitanySalesorAlcoholTaxesfor2010bythe
duedateinviolationofMNStat.289A.63Subd.1(a).
Fortheyear2011theDefendantoperatedaMinnesotaS-CorporationknownasSt.CroixEvents,Inc.,
whoseprimaryoffices,liketheDefendant'shomeaddress,werelocatedinWashingtonCounty.St.Croix
Events,Inc.actedaspromoterforvariouseventsincludingtheannualLumberjackDaysheldinStillwater,
Minnesota.St.CroixEvents,Inc.handledallkeyaspectsoftheoperationofLumberjackDaysincludingtax
matters.Morethan$102,000insalessubjecttoMinnesotaSalesTaxandmorethan$50,000insales
subjecttoAlcoholTaxesweremadeduringLumberjackDaysin2011.St.CroixEvents,Inc.kneworshould
haveknownasaprofessionalpromoterthesalesmadebyLumberjackDaysFestivalweresubjectto
MinnesotaSalesTaxandrelatedAlcoholTax,therebyrequiringtheDefendanttoremitanestimated
$8,390inannualSalesandAlcoholTaxesnolaterthanFebruary5,2012,withtheMinnesotaDepartment
ofRevenue.TheDefendantwillfullyfailedtoremitanySalesorAlcoholtaxesfor2011bytheduedatein
violationofMNStat.289A.63Subd.1(a).
TheDefendantasshareholderandoperatorofSt.CroixEvents,Inc.,operatingasapromotionbusiness,
willfullyfailedtofilerequiredNon-ResidentEntertainers'TaxreturnswiththeMinnesotaDepartmentof
Revenuefortheyear2009inviolationofMNStatutes290.9201and289A.63Subd.1(a),asafelony.MN
Stat.289A.63Subd.1(a)states"Apersonrequiredtofileareturn,reportorotherdocumentwhowillfully
attemptsinanymannertoevadeordefeatataxbyfailingtofileitwhenrequired,isguiltyofafelony."The
DefendantwaspersonallyresponsibleforfilingalltaxreturnsforhisS-Corporation,St.CroixEvents,Inc.,
includingrequiredNon-ResidentEntertainers'Taxreturns(NRE)requiredpursuanttoMNStat.290.9201.
St.CroixEvents,Inc.'soldestNREtaxfilingobligationforLumberjackDayseventsthatiswithinthesix
yearstatuteoflimitationsisfortaxyear2009.TheformETDwasdueonAugust31,2009,theendofthe
monthfollowingtheJuly2009LumberjackDaysperformances.PromotersarealsorequiredtofileForm
ETA,PromotersAnnualReconciliation,attheendofeverytaxyear.ThefilingdeadlineisFebruary28after
thecloseofataxyear.FormETAfortaxyear2009wasdueonFeb.28,2010.
TheDefendantasshareholderandoperatorofSt.CroixEvents,Inc.,aMinnesotaS-Corporationoperating
asapromotionbusiness,willfullyfailedtoremitrequiredNon-ResidentEntertainers'Taxeswiththe
MinnesotaDepartmentofRevenuefortheyear2009inviolationofMNStatutes290.9201and289A.63
Subd1,asafelony.MNStat.289A.63ASubd.1(b)states"Apersonrequiredtopayorcollectandremita
tax,whowillfullyattemptstoevadeordefeatataxlawbyfailingtodosowhenrequired,isguiltyofafelony."
TheDefendantispersonallyresponsibleforremittingalltaxesassociatedwithSt.CroixEvents,Inc.Asa
promoterhiscompanytookonresponsibilityforhandlingthetaxrelatedmattersoftheclients.Ata
minimumhewasrequiredtoremitNRETaxthemonthfollowingaperformanceinMinnesota.Hewas
requiredtoremitNRETaxesannuallybythefollowingFebruary28thofeachtaxyear.St.CroixEvents,
Inc.'soldestNRETaxremittanceobligationthatiswithinthesixyearstatuteoflimitationsisfortaxyear
7

2009.TaxesforLumberjackDaysFestivalJuly2009performancesweredueonAugust31,2009.
PromotersarealsorequiredtoremitNRETaxesusingformETA,PromotersAnnualReconciliation,atthe
endofeverytaxyear.ThefilingdeadlineisFebruary28afterthecloseofataxyear.FormETAfortaxyear
2009wasdueonFeb.28,2010.
Fortheyear2009theDefendantoperatedaMinnesotaS-CorporationknownasSt.CroixEvents,Inc.,
whoseprimaryofficeswerelocatedinWashingtonCounty.The2009MinnesotaNon-Resident
Entertainers'Taxremittance(ETA),forentertainerspaidbySt.CroixEvents,Inc.in2009,wasduenolater
thanFebruary28,2010.TheDefendantwillfullyfailedtotimelyremittheNon-ResidentEntertainers'Taxes
(ETA)bytheduedateofFebruary28,2010inviolationofMNStatutes290.9201and289A.63Subd.1(b).

SIGNATURESANDAPPROVALS
ComplainantrequeststhatDefendant,subjecttobailorconditionsofrelease,be:
(1)arrestedorthatotherlawfulstepsbetakentoobtainDefendant'sappearanceincourtor
(2)detained,ifalreadyincustody,pendingfurtherproceedingsandthatsaidDefendantotherwise
bedealtwithaccordingtolaw.
Complainant

JeffSlater
RevenueSpecialInvestigator
600RobertStreetN
St.Paul,MN55146-6590

ElectronicallySigned:
03/17/201508:48AM

Subscribedandsworntobeforetheundersigned.
NotaryPublicor
JudicialOfficial

CindyGlaser-OBrien
Commissionexpires:01/31/2017
NotaryPublic,CountyofRamsey ElectronicallySigned:
600RobertStreetN
03/17/201508:54AM
St.Paul,MN55146-6590
NotaryID:31051833

Beingauthorizedtoprosecutetheoffensescharged,Iapprovethiscomplaint.
ProsecutingAttorney RichardD.Hodsdon
AssistantWashingtonCounty
Arttorney
POBox6
1501562ndStreetNorth
Stillwater,MN55082
(651)430-6115

ElectronicallySigned:
03/16/201502:10PM

FINDINGOFPROBABLECAUSE
From the above sworn facts, and any supporting affidavits or supplemental sworn testimony, I, the Issuing Officer, have
determined that probable cause exists to support, subject to bail or conditions of release where applicable, Defendants arrest
or other lawful steps be taken to obtain Defendants appearance in court, or Defendants detention, if already in custody,
pendingfurtherproceedings.Defendantisthereforechargedwiththeabove-statedoffense(s).

X SUMMONS
THEREFOREYOU,THEDEFENDANT,ARESUMMONEDtoappearon___________,_____at_____AM/PM
beforetheabove-namedcourtat1494962ndStreetNPOBox3802,Stillwater,MN55082-3802toanswerthis
complaint.
IFYOUFAILTOAPPEARinresponsetothisSUMMONS,aWARRANTFORYOURARRESTshallbeissued.

WARRANT
To the Sheriff of the above-named county or other person authorized to execute this warrant: I order, in the name of the State
of Minnesota, that the Defendant be apprehended and arrested without delay and brought promptly before the court (if in
session), and if not, before a Judge or Judicial Officer of such court without unnecessary delay, and in any event not later than
36hoursafterthearrestorassoonassuchJudgeorJudicialOfficerisavailabletobedealtwithaccordingtolaw.
ExecuteinMNOnly

ExecuteNationwide

ExecuteinBorderStates

ORDEROFDETENTION
Since the Defendant is already in custody, I order, subject to bail or conditions of release, that the Defendant continue to be
detainedpendingfurtherproceedings.
Bail:$
ConditionsofRelease:
ThiscomplaintisissuedbytheundersignedJudgeasofthefollowingdate:March17,2015.
JudicialOfficer

GarySchurrer
judge

ElectronicallySigned:03/17/201510:08AM

SworntestimonyhasbeengivenbeforetheJudicialOfficerbythefollowingwitnesses:

COUNTYOFWASHINGTON
STATEOFMINNESOTA

Clerk'sSignatureorFileStamp:

StateofMinnesota
Plaintiff

RETURNOFSERVICE

vs.

IherebyCertifyandReturnthatIhaveservedacopyofthis
SummonsupontheDefendanthereinnamed.

DavidWebsterEckberg

SignatureofAuthorizedServiceAgent:

Defendant

10