Pequot Lakes couple charged with multiple felony tax crimes

Detroit Lakes, Minn. (KDLM) – The Crow Wing County Attorney’s Office charged two Pequot Lakes residents with 10 felony tax charges including filing false or fraudulent income taxes and failing to pay income tax

Shannon Marie Steele and Russel Clair Steele, both of Pequot Lakes, are alleged to have filed fraudulent income tax returns for tax years 2017 through 2021 and failed to pay the correct amount of income tax in those years

A criminal complaint states Shannon Steele owned Northern Lakes Rescue, a nonprofit dog rescue organization, where she was the only one with access to the organization’s bank accounts and records.

The complaint also alleges that each year, Steele withdrew thousands of dollars from bank accounts associated with the nonprofit to use for personal expenses such as appliances, video games, airfare, groceries and Jet Ski rentals.

The Steeles failed to include these withdrawals as income on their tax returns and avoided paying tax on more than $303,000 in taxable income.

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.