Jeffrey McKenzie, co-owner of 61 Marine and Sports, has been accused of sales tax fraud totaling $3.2 million, according to a criminal complaint provided to Powersports Finance.
McKenzie faces three charges of knowingly aiding in the preparation of tax returns that were fraudulent or false. The company avoided more than $1.9 million in sales tax, but combined with penalties and interest, that number increased to $3.2 million.
Based in Cedar Grove, Minn., 61 Marine and Sports sells boats, ATVs, snowmobiles and boat motors. The dealership carries Polaris brand snowmobiles and ATVs.
From January 2013 to September 2018, McKenzie allegedly underreported the monthly sales of the dealership to the accountant who filed the sales tax returns, according to the criminal complaint. A preliminary investigation initiated in August 2018 led to a criminal investigation by the Minnesota Department of Revenue and Washington County sheriff’s office.
McKenzie admitted that the numbers were wrong when questioned by the investigator, but could not offer further explanation, according to the complaint.
Each felony charge carries either a maximum penalty of five years in prison, a $10,000 fine or both. McKenzie’s initial court appearance is scheduled for Sept. 3.