Richard G. Frohling, Acting United States Attorney for the Eastern District, announced that Douglas Larson has been sentenced to two years in federal prison for failing to pay over $1,000,000 in employment taxes. The sentencing, which took place on April 4, 2025, is the result of offenses connected to Larson's business activities with Mods International, later called Mods Client Services, a company known for constructing buildings using shipping containers.
Court documents reveal that Larson neglected his tax responsibilities over nearly a 14-year period while indulging in personal luxuries. Senior United States District Judge William Griesbach, during the sentencing, underscored the severity and prolonged nature of Larson’s offenses. He also pointed out Larson's extensive history of fraud, which dates back to the 1970s. Judge Griesbach acknowledged Larson's failing health when determining the sentence length.
Acting U.S. Attorney Frohling remarked, “This defendant withheld taxes from the employees of his businesses but willfully refused to pay the money over to the United States. By doing so, he not only breached the trust of his employees but also caused a loss to every American taxpayer. I commend all involved in holding Mr. Larson accountable for his actions.”
Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation, Chicago Field Office, commented, “For over a decade, Douglas Larson chose personal luxury over his obligations to his employees and the tax system. IRS Criminal Investigation remains committed to holding individuals accountable who seek to defraud the government and violate the trust of their employees and the American taxpayer.”
This case was investigated by the IRS Criminal Investigation Division and prosecuted by Assistant United States Attorney Zachary J. Corey.
