Anoka County judge fined for failing to file state taxes

An Anoka County District Court judge on a medical leave for depression pleaded guilty Monday to gross misdemeanors for failing to file state tax returns for four years.

State Revenue Department investigators found that Judge Donald J. Venne, 61, of Coon Rapids, had failed to file Minnesota tax returns for his household for tax years 2003-2006. He owed $3,179 more than he had paid. Venne submitted additional tax payments of $1,500 in 2006, $400 in 2007 and $1,700 in 2008, but did so without any supporting reports or extension requests.

Doug Kelley, Venne's attorney, said the judge pleaded because he took full responsibility for his actions. Kelley said Venne suffered a serious trauma in 2002 when his child attempted three times to overdose on drugs and he found her nearly dead the last time.

"That put a mental block on him and, among other things, he couldn't get to his taxes and didn't open his mail," Kelley said. "When my investigators got to his house they found bags and bags of unopened mail, including a $6,300 refund from the IRS, which was more than he owed [the state]. Ninety-five percent of his taxes were withheld from his paycheck."

Kelley said he doesn't expect Venne to return to the bench because he is still severely depressed and has been diagnosed with post-traumatic stress syndrome.

Since he was charged last September, Venne has filed all of his overdue tax returns and paid all taxes due, plus penalties and interest. Kelley noted that in two of the four years he failed to file returns, he was due refunds. He said Venne also paid about $8,000 in penalties for late filing of federal returns and tax payments.

To avoid a potential conflict of interest, the Dakota County attorney's office prosecuted the case for Anoka County. and retired Duluth Judge John Oswald accepted the pleas Monday. Oswald fined Venne $900 for each of the four gross misdemeanors and placed him on probation for two years.

Backstrom noted that the Dakota and Anoka county attorneys' offices have policies that allow some first-time offenders with minor offenses, but not public officials, to be diverted from court sanctions to less serious penalties.