MN Man Guilty In $3.5 Million Tax Fraud Scheme: Authorities

PRIOR LAKE, MN — A Minnesota man has pleaded guilty in connection with a $3.5 million tax fraud scheme, according to authorities.

Beau Wesley Gensmer, of Prior Lake, pleaded guilty Friday to wire fraud and assisting in preparing a false income tax return, authorities said.

From 2012-18, he helped prepare at least 50 false tax returns claiming fraudulently inflated refunds on behalf of unwitting clients, according to the U.S. Department of Justice. He hired a tax preparer in Anchorage, Alaska, and sent the person false information, including fraudulent business losses and charitable contributions, for each return she prepared, authorities said.

Gensmer charged his clients about 30 percent of each fraudulent refund and caused a tax loss to the Internal Revenue Service of at least $3.5 million, according to the department.

He is set to be sentenced May 7 and could receive up to 20 years in prison for fraud and three years in prison for assisting in preparing a false return, authorities said, adding he also faces supervised release, restitution and monetary penalties.