Lake Elmo man faces 9 counts of tax evasion

Updated: July 11, 2011 - 5:38 PM

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A Lake Elmo business owner faces nine felony charges for allegedly failing to file tax returns and for collecting thousands of dollars in sales taxes and not passing the money along to the state.

Investigators were tipped off after Ronald S. Bougie, 46, bragged to acquaintances about not filing state or federal tax returns since 2001, according to a criminal complaint filed in Washington County District Court. He was arrested and briefly jailed on Friday.

After an investigation by the Minnesota Department of Revenue earlier this year, Bougie, owner of Fantastic Finishes and Woodworking, is charged with five counts of failing to file tax returns for tax years 2005 through 2009, three counts of failing to pay taxes for tax years 2005, 2006 and 2008 and one count of failure to pay state funds that were collected.

In 2007, the complaint says, Bougie claimed a monthly income of $4,800. He also improperly co-mingled his personal and business finances and wrote checks from his business accounts for gambling, fireworks, food and trips.

Bougie denied ever charging sales tax on his business transactions, but during a search warrant, investigators found invoices for his business which showed he charged and collected sales tax between 2004 and 2008, the complaint says. Tax returns prepared for 2005 through 2008 were also found, which had never been filed.

Bougie admitted to investigators that he hadn't filed because he didn't want to pay taxes owed and that he didn't file in years he was owed a refund because the refund would have been seized to pay outstanding child support.

JIM ANDERSON