Madison, Wis. - John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Dale Scholl, 58, Mount Horeb, Wis., was sentenced today by Chief U.S. District Judge William Conley to 18 months in prison for filing a false 2006 federal income tax return. Scholl pleaded guilty to this charge on April 12, 2011.

Judge Conley also imposed a $50,000 fine, due and payable within 24 hours. In addition, Judge Conley imposed a one-year term of supervised release following Scholl's release from prison. As a special condition of release, Scholl must complete 500 hours of community service.

According to the evidence presented at the sentencing hearing, Scholl under-reported a total of $748,000 in income over a six-year time period from 2001 to 2006. He owed income taxes to the IRS in excess of $201,000, which Scholl paid to the Clerk of Court yesterday. Scholl failed to report interest income he received from a loan sharking business he operated during those tax years. Scholl also failed to report income he received working as a heating and air conditioning contractor during that same time period.

In addition, the Court found that Scholl has engaged in extortionate means to collect payment on his outstanding loans to clients. This included a variety of intimidation methods, including verbal threats of physical violence, mailing of letters threatening foreclosure, threats to disclose personal information, physical altercations and being verbally abusive and intimidating.

At the sentencing, Judge Conley told Scholl, "I am concerned about your greed. You are here because you chose a route of operating outside of the system and took matters into your own hands."

In imposing Scholl's prison sentence, Judge Conley explained that he had an obligation to fashion a sentence that both punishes the defendant as well as serves as a general deterrent to other tax evaders in the community. Judge Conley ordered that Scholl report to prison on August 15, 2011.

The charges against Scholl were the result of an investigation conducted by the Internal Revenue Service - Criminal Investigation Division office in Madison, Wis. The prosecution of this case has been handled by Assistant U.S. Attorney Daniel J. Graber.

 

 

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