“`html

Walser Automotive Group Accused of Tax Evasion Scheme Using Montana Shell Company

Published: 2026/02/01 20:53:40

Overview of the Allegations

Walser automotive Group, a Twin Cities-based dealership, and William Fredrick Ward of Orono, Minnesota, are facing criminal⁤ charges for allegedly using a Montana-based shell company to avoid paying Minnesota sales taxes on vehicle sales. Prosecutors claim the scheme ⁤involved improperly ‍titling at least 34 vehicles in Montana, a state ⁢without a vehicle sales tax, despite the vehicles being sold to Minnesota residents. The Minnesota Department of Revenue estimates the total unpaid taxes, excluding penalties and interest, to be at least $350,745.

The Scheme: How It Allegedly Worked

According to the criminal complaint, the alleged scheme began in March 2020 and continued through August 2023. William Fredrick ‍Ward, 58, reportedly worked under ⁤contract with walser Automotive Group, initially buying and selling high-end vehicles. Walser provided the financial resources, paperwork, and warehouse space for these transactions.

The core of the alleged fraud involved establishing ⁤a Montana limited liability company (LLC) – described as a “shell” company – to purchase vehicles. Prosecutors assert that this LLC was under Walser’s control and specifically created ⁣to circumvent sales tax⁤ obligations. ‍ Vehicles, ‍including luxury brands like Mercedes-Benz,⁣ Porsche, Land Rover, and Chevrolet, were titled to this Montana entity before⁤ being sold in Minnesota. Ward ⁢and Walser allegedly split the resulting‍ profits evenly.

Exploiting Tax Loopholes and Market Conditions

The complaint details how Ward would request sellers to title vehicles directly ⁢to the Montana shell company,effectively avoiding Minnesota sales tax. Prosecutors state that Ward often had buyers lined⁤ up before acquiring the vehicles.

The scheme ‍reportedly intensified after the COVID-19⁢ pandemic, capitalizing on the surge in used car prices and limited inventory. Prosecutors allege that Walser and Ward fraudulently titled new vehicles as‍ used and registered them in Montana to avoid higher taxes associated with new vehicle sales. One Walser employee ⁣reportedly told investigators that the company even leased vehicles to employees for a period to establish a “used” status.

Legal Status and ⁤Lack of Comment

As of today, February 1, ⁤2026, neither William⁤ Fredrick Ward nor ⁣representatives of Walser Automotive Group have publicly commented on the⁣ charges. The case is currently proceeding through the Hennepin⁢ County court system.