Tax evasion charges brought against Stillwater masonry business
Sixteen charges have been filed against a Stillwater masonry business after its owner was accused of tax evasion and failing to pay wages to its employees, the Ramsey County Attorney’s Office announced this week.
A complaint was filed against Todd A. Konigson in connection with his operation of Stillwater Masonry Restoration, Inc.
Authorities began to investigate Stillwater Masonry after receiving reports that the business was failing to pay wages in a timely manner and failed to “comply with other obligations owed to its employees” and also failed to “fulfill contractual obligations for small businesses, churches and nonprofit organizations in and around the Twin Cities.”
During their investigation, the Ramsey County Attorney’s Office uncovered six lawsuits against Konigson and Stillwater Masonry alleging that the business had failed to pay workers, subcontractors and vendors. At least three of the lawsuits resulted in a judgment against either Konigson or Stillwater Masonry. This wage investigation led authorities to look into Stillwater Masonry’s tax situation, where they uncovered a pattern of alleged tax evasion dating back to 2017.
Ramsey County Attorney John Choi (Scott Takushi / Pioneer Press)
“Tax evasion is a serious matter which we are prepared to meet head-on,” said Ramsey County Attorney John Choi. “The Ramsey County Attorney’s Office is committed to protecting victims of wage theft and holding bad employers accountable.”
According to the criminal complaint, the investigation by the county attorney’s office and the state department of revenue began while the masonry business was performing work for the historic Masonic Temple in St. Paul.
“Withholding tax is a trust tax. When a business owner fails to remit that tax to the state, they’re violating that trust and their employees are unduly impacted,” said the state department of revenue’s Criminal Investigation Division Director Melanie Leslie.
The investigation looked at tax periods from 2017 through 2022.
During this time, authorities allege that Stillwater Masonry “failed to timely report at least $2.5 million in income for tax purposes during these years.”
In addition, investigators allege that Konigson failed to report at least $495,680 in wages paid to employees for withholding tax purposes and has now accrued a tax liability of at least $106,903.72 for state income taxes and withholding taxes (including penalties and interest).
In 2022, the Ramsey County Attorney’s office became one of the first in Minnesota to hire a full-time wage theft investigator to prioritize these types of crimes.
Anyone who has information about wage theft or violations against employees in Ramsey County is asked to contact the Ramsey County Attorney’s Office at 651-266-3217.
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