United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Collect and Pay Over Tax was resentenced on Oct. 25, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court. The Defendant was charged on Jan. 30, 2017, and pleaded guilty on Feb. 12, 2017.
Kenneth E. Orrock, age 48, was sentenced to five years probation. He was further ordered to pay a $100 special assessment to the Federal Crimes Victims Fund, and $280,257.72 in restitution to the Internal Revenue Service, with restitution to be paid in monthly payments of $1,000.
The Court originally sentenced Orrock on Aug. 30, 2017, to 12 months of imprisonment, with the sentence to be served on weekends, followed by three years of supervised release. On Oct. 3, 2017, the Court vacated the original sentence, concluding that the sentence to weekend imprisonment was not authorized under federal law and was, therefore, illegal.
During the years 2011 through 2015, Orrock was the sole member of Black Hills Asset Protection Group, LLC, a limited liability company located in Rapid City that offers security-related services in western South Dakota under the trade name “Black Hills Patrol."
During the same period, Orrock withheld taxes from his employees’ wages, including federal income tax, social security, and Medicare taxes for employees of Black Hills Patrol, and willfully failed to pay over those taxes to the United States. Orrock also willfully failed to pay the employer’s portion of taxes on wages paid to employees during the same period. Rather than paying over the taxes, Orrock used a portion of the withholdings for his own personal use.
Orrock, who was a licensed attorney until recently, served as the Bennett County State’s Attorney until January 2017.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Source: U.S. Department of Justice, Office of the United States Attorneys
