Stillwater Masonry Owner Stiffed Churches, Workers, Others: State

ST. PAUL, MN — A contractor has pled guilty to failure to report taxes and related wages owed by his local business, Stillwater Masonry.

Under the plea deal, Todd A. Konigson receives three years of probation, provided he fulfills numerous sentencing terms, including paying over $70,000 in restitution to the state of Minnesota and forfeiting his state contractor’s license.

Konigson, 57, lives in Pompano Beach, Florida, according to court documents.

"This conviction is a win for the taxpayers of Minnesota and those honest businesses that take seriously their obligation to follow Minnesota’s tax laws," said Minnesota Department of Revenue Criminal Investigation Division Director Melanie Leslie.

"We’re appreciative of the work that the RCAO put into this case and look forward to partnering with them in future cases that fight fraud and protect taxpayer money."

The Ramsey County Attorney’s Office charged Konigson in December 2023, accusing Stillwater Masonry of not paying its employees on time.

The company was also failing to meet its contracts with small businesses, churches, and non-profits in the Twin Cities area, according to authorities.

At the time, Konigson’s business was working on the historic Masonic Temple in Saint Paul.

Investigators found multiple past civil cases in Minnesota claiming Konigson and Stillwater Masonry didn’t pay workers, subcontractors, or suppliers. Investigators said they also discovered that Stillwater Masonry had not fulfilled contracts with small businesses, churches, and non-profits in the Twin Cities area.

The Minnesota Department of Revenue later joined the investigation to examine tax issues related to Konigson’s business.

Their review, covering tax years from 2017 to 2022, found that Konigson and Stillwater Masonry failed to report at least $2.5 million in income for tax purposes.

Additionally, the investigation revealed that Konigson did not report nearly $500,000 in employee wages for withholding taxes. The Department of Revenue estimates that Konigson owes at least $106,000 in state income and withholding taxes for the relevant years.

As part of the settlement agreement, Konigson must pay $70,178 in restitution to the Minnesota Department of Revenue. If he pays the full amount, he could be granted early discharge from probation.

However, failure to pay before probation ends will result in his felony sentence being imposed.

Additionally, Konigson must cooperate with any audit or information requests from the DOR and make efforts to pay his tax liabilities.

He is banned from working as a contractor or performing masonry work in Minnesota and is prohibited from holding a management or ownership role in any licensed construction or masonry business.

Konigson must also cooperate with past customers seeking compensation from the Minnesota Contractor Recovery Fund and is barred from receiving government contracts or selling products to state agencies for three years.