Local Millionaire Convicted of Ten Felony Tax Crimes

A 53 year-old Wayzata man has been found guilty of ten felony and ten gross misdemeanor tax crimes.

Michael Fitzgibbons had been charged with numerous counts of tax evasion by the Hennepin County Attorney’s Office in early 2010. They alleged he failed to file and pay taxes on his more than $2.5 million average annual income between 2003 and 2007. At that time he allegedly owed the state more than $433,000.

"This verdict is a victory for every taxpayer and a warning to those seeking to evade their obligations,” Hennepin County Attorney Mike Freeman said. “When so many Minnesotans are struggling for financial security, we must make an example of those defrauding the state."

Fitzgibbons was found guilty of five felony counts for willfully failing to file income tax returns and five felony counts for willfully failing to remit taxes for tax years 2003 through 2007. He was also found guilty of five gross misdemeanor counts for knowingly failing to file income tax returns and five gross misdemeanor counts for knowingly failing to remit taxes.

Fitzgibbons admitted that he failed to file his income tax returns on time for tax years 2003 through 2007.  According to the criminal complaint filed in Hennepin County, Fitzgibbons took in about $13 million, between his salary and his dividend bonuses, between 2003 and 2007. 

“This case is a reminder to everyone that no matter who you are and how much money you make, you have to file and pay your taxes,” said Thomas Teale, the Minnesota Department of Revenue’s Criminal Investigation Director.

Fitzgibbons received letters from the Minnesota Department of Revenue in 2005 and 2008 stating that he had failed to file returns for tax years 2001 through 2004. It’s alleged that Fitzgibbons never responded to the letters.

In 2008, Fitzgibbons’ tax preparer sent him several prepared tax returns along with a letter urging him to mail the returns as soon as possible. Fitzgibbons did not file the returns until he found out he was being criminally investigated.

Each felony is punishable by up to five years in prison, up to a $10,000 fine, or both. Sentencing will be scheduled at a later date.