Two brothers who conspired with former Stillwater Mayor Kenneth Harycki in a federal tax evasion scheme were sent to prison Wednesday.
Thurlee Belfrey, 52, of St. Paul, was sentenced to eight years in prison and three years of supervised release, and ordered to pay more than $8.9 million in restitution. He pleaded guilty in September to one count of conspiracy to defraud the United States and one count of failing to truthfully account for and pay withheld taxes.
Roylee Belfrey, 52, also of St. Paul, will serve five years in prison with three years of supervised release, and was ordered to pay nearly $4.6 million in restitution. He pleaded guilty in September to two counts of failing to truthfully account for and pay withheld taxes.
Thurlee's wife, Lanore Belfrey, 43, of Minnetonka, also was sentenced to 15 months in prison with two years of supervised release and $402,158 in restitution. She pleaded guilty in September to one count of conspiracy to defraud the U.S.
Roylee Belfrey and Thurlee Belfrey admitted "using for their own benefit" $3.96 million in withheld taxes between 2007 and 2014, including taking a Caribbean cruise and attempting a reality show based on their lives, according to court documents.
Harycki did accounting work for the Belfreys, falsified tax forms on their behalf and created a shell company to hide money owed the federal government. He pleaded guilty in January 2015 and is serving time in federal prison in Duluth.
