Burnsville Man Accused of Filing False Tax Returns

A Burnsville man has been charged with failing to pay income taxes on money that he is accused of taking from an amateur sports organization.

Paul Endren Johnson, 60, faces two felony counts of filing fraudulent tax returns for 2006 and 2007. Each count carries a maximum penalty of five years in prison and a $10,000 fine.

According to the criminal complaint, officials began investigating Johnson in August 2008 in connection with funds missing from the Minnesota Amateur Rugby Association.

Johnson, who worked as the group’s gambling manager, was responsible for the organization’s endowment fund checking account , and was an authorized signer on the account.

Between January 2005 and December 2007, according to the complaint, Johnson removed $41,250 from the group’s bank accounts without board approval.

Johnson wrote checks from the group’s accounts and either deposited them into his own bank account, cashed them or deposited them at an ATM and withdrew cash, the complaint charges.

Investigators spoke to Johnson on Oct. 1, 2008, and he admitted moving money from the group’s accounts into his own account, according to the complaint. He told authorities he did it for “fundraising purposes” and that he had reported it to the board.

Johnson told investigators that he was working on obtaining records to substantiate the fundraising activities, but his bank account records showed that he frequently used the account to pay personal expenses, the complaint says.

Johnson filed tax returns with the state for tax years 2006 and 2007 but failed to report the $41,250 that was never returned to the rugby association, according to authorities. For 2006, state investigators determined that he owed $2,666 in taxes, and $2,339 in 2007.

Johnson is scheduled to make a first appearance on the charges May 7 in Dakota County District Court in Hastings.