U.S. Attorney Gregory J. Haanstad | U.S. Department of Justice
United States Attorney Gregory J. Haanstad announced that on January 8, 2025, Senior United States District Judge William C. Griesbach accepted the guilty plea of Douglas Larson. Larson pleaded guilty to one count of failure to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), in violation of 26 U.S.C. § 7202.
The charges stem from a one-count information filed on November 15, 2024, alleging that Larson failed to pay employment taxes for each quarter from January 2018 through September 2021. During this period, Larson did not remit approximately $396,082.77 in employment taxes withheld from his employees' paychecks.
According to the plea agreement, Larson was the owner and operator of Mods International, later known as Mods Client Services (Mods), which manufactured and installed residential and commercial buildings using shipping containers.
In addition to the tax loss alleged in the information, both parties agreed in the plea agreement that Mods and a related company owned by Larson failed to pay over withheld employment taxes as well as those owed before and after the specified period. The total tax loss agreed upon in the plea agreement amounted to $1,102,805.13.
Sentencing is scheduled for April 4, 2025, at 10:30 a.m., before Judge Griesbach. At sentencing, Larson faces up to five years in prison and a fine of up to $250,000. He also faces up to three years of supervised release following any imprisonment term.
The IRS Criminal Investigation Division investigated this case with Assistant United States Attorney Zachary J. Corey prosecuting.
For additional information contact Public Information Officer Kenneth.Gales@usdoj.gov or call 414-297-1700.
