A co-owner of Sela Roofing and Remodeling and the owner of one of its subcontractors were charged this week in federal court with conspiring to embezzle hundreds of thousands of dollars from the busy St. Louis Park roofing company.

Amit Y. Sela, 51, of Minnetonka, faces a conspiracy charge and two counts each of mail fraud, tax evasion, filing false individual tax returns and filing false corporate tax returns.

According to an indictment made public Wednesday, Sela duped his company into paying phony bills between September 2001 and 2004 to avoid paying taxes and to deprive his business partner of the money.

Court documents identify Sela Roofing's co-owner only by his initials, "P.S." But the company released a statement Wednesday indicating that the co-owner is Amit's brother, company president Paz Sela.

The U.S. Attorney's Office alleges that more than $600,000 was embezzled from Sela Roofing, and state and federal income taxes were evaded on that stolen income. The company's customers were not affected by the alleged embezzlement.

The indictment said Amit Sela siphoned some of the money for credit card bills, boat storage, swimming pool payments, interior decorating, jewelry and other personal expenses. Public records show he owned a 44-foot Sea Ray yacht, called Selabration.

According to state court records, he met convicted swindler Thomas von Behren in 2003 and lent him $3.3 million on promises of high returns. Sela ultimately lost $641,000 and tried unsuccessfully to recoup the money from his insurance company.

The government said Amit Sela reported taxable income in 2001 of $2.4 million, a substantial understatement. He also caused his company to file a 2001 tax return understating the cost of goods sold, the indictment says.

Sela's attorney, Eric Brever, said in a statement: "We believe a jury will find Mr. Sela innocent of all the charges." He said his client had made some tax errors but they were corrected and "all of the taxes were paid prior to the IRS criminal investigation."

Amit Sela added: "We know the truth, and we know the truth will prevail."

An attorney for Sela Roofing said that Amit Sela had repaid it for all of the questioned payments and that he has not been involved in company operations since 2005.

Also charged in the case is remodeler Abdullah S. Noaman Jr., 43, of Shakopee.

Noaman, who is the owner of A.L.B.O.T.² LLC, faces one count of conspiracy. He allegedly submitted false invoices and lien waivers to Sela Roofing, collected some money, then wrote checks to Amit Sela or to "cash."

If convicted, Sela and Noaman face a maximum of five years in prison.

Star Tribune staff writer Jim Walsh contributed to this report. Paul Walsh • 612-673-4482