Derek Chauvin, a former Minneapolis police officer accused of the murder of George Floyd, has been charged with multiple felony counts of tax evasion.
The Washington County Attorney Office released complaints regarding Derek Michael Chauvin, 44, and Kellie May Chauvin, 45, detailing nine felony income-tax charges, which each carry a maximum five-year prison sentence and a $10,000 fine.
Chauvin and his wife, Kellie, face allegations of failing to report income from various jobs, and “owe nearly $38,000 to Minnesota state,” according to the BBC.
Here’s what you need to know:
The Complaints Detail the Chauvins’ Alleged Fraudulent & Late Tax Returns
Derek Chauvin and wife face felony tax fraud charges https://t.co/baqqo6OlSP
— CBS News (@CBSNews) July 23, 2020
The complaints state that investigations conducted by the Minnesota Department of Revenue uncovered the Chauvins filed a late tax return in 2014, and failed to file Minnesota income tax returns for 2016, 2017, or 2018.
The complaints allege that the Chauvins were aware of their obligation to file state income tax returns and received multiple correspondence regarding missing tax returns from previous years. While residing and employed in Minnesota, the Chauvins allegedly “failed to file income tax returns and pay state income taxes, underreported and underpaid taxes on income generated from various employments each year, and failed to pay proper sales tax on a vehicle purchased in Minnesota.”
The Washington County Attorney’s office said “Revenue investigators initiated a review into the Chauvins in June 2020 for failure to timely file Minnesota individual income tax returns from 2016 to 2019 and fraudulently filing tax returns from 2014 to 2019.”
Washington County Attorney Pete Orput said in the statement, “When you fail to fulfill the basic obligation to file and pay taxes, you are taking money from the pockets of citizens of Minnesota. Our office has and will continue to file these charges when presented. Whether you are a prosecutor or police officer, or you are doctor or a realtor, no one is above the law.”
The Couple Owned Property in Florida & Worked in Realty & Security
Derek Chauvin, Kellie Chauvin charged with felony tax crimes, owed $21,853 in taxes: Report https://t.co/6aiiySFvlq
— Conan Daily (@conan_daily) July 23, 2020
The complaints outline the Minneapolis Police Department allowed Chauvin to hold various jobs when he was off duty, including security for the following food establishments: El Nuevo Rodeo, Cub Foods, Midtown Global Market, and EME Antro Bar.
The complaints say “Chauvin earned approximately $95,920.000 between January 2014 and December 2019 from El Nuevo Rodeo that the Chauvins did not reports as income.”
The pair “owned two homes in Woodbury, Minnesota” between 2014 and 2017,” and owned a home in Windermere, Florida, since 2011.
When the Chauvins sold one of their Woodbury homes, they “took a deduction of the depreciation of the home to lower their income taxes.”
“That same deduction must be applied to the purchase price of the home when determining capital gains tax. Investigators calculated rental home depreciation $32,734. D. Chauvin and K. Chauvin did not apply this number to the purchase price when subtracting from the sale price, resulting in less capital gains tax.”
Kellie Chauvin is a registered realtor with RE/MAX Results in Eden Prairie, Minnesota, and also works as a photographer. Her realty work earned her “$22,398.61 in 2016, $94,004.63 in 2017, and $64,961.33 in 2018.”
Kellie Chauvin “told investigators that she had not filed income tax returns because ‘it got away from her.'”
In total, the Chauvins underreported their joint income from 2014 to 2019 by $464,433, according to the official complaints.
A search warrant was executed on June 25 at the Chauvins’ Oakdale home, which was found to be nearly empty, with the exception of “a box of financial and tax documents, work schedules and other correspondence … found in the garage,” which “corroborated Minnesota residence.”
A further search was carried out at the workplace of Derek Chauvin’s father, who is an accountant and prepared the Chauvins’ 2014 and 2015 tax returns. Chauvin’s father “stated that he file an extension on behalf of the Chauvins for the 2016 income tax returns; however [they] never provided financial information” for the completion of the tax return.
Records show when the Chauvins purchased a 2018 BMW in Minnetonka, they listed their residence as the Windermere, Florida property, despite the fact Kellie Chauvin later “admitted that the Oakdale address was their primary residence,” and she only spent December and January in Florida.
“There is no homestead exemption on the Florida property,” according to the complaints.
Derek Chauvin is currently in custody at the Minnesota Correctional Facility at Oak Park Heights. The facility recorded a phone call where Derek Chauvin and Kellie Chauvin discuss their tax returns on June 26, where Kellie Chauvin states “Yeah well we don’t want to get your dad involved because he will just be mad at me I mean us for not doing them for years.”
The former Mrs Minnesota winner filed for divorce from Derek Chauvin following Mr Floyd’s death, Kellie Chauvin’s attorney, Esme Murphy, confirmed in May.