A 72-year-old business owner was sentenced to two years in federal prison for failing to pay over $1 million in employment taxes, the U.S. Attorney’s Office for the Eastern District of Wisconsin announced Monday.
Douglas Larson, the owner and operator of Mods International (later known as Mods Client Services), was convicted of failing to pay employment taxes owed to the Internal Revenue Service (IRS) over a nearly 14-year period. Larson’s company manufactured and installed residential and commercial structures made from shipping containers.
Between 2008 and 2022, Larson failed to turn over the employment taxes his company withheld from employee wages, effectively evading paying more than $1 million in taxes. Court records show that, during this period, Larson spent substantial amounts on personal luxuries for himself and his wife, further demonstrating his willful disregard for tax obligations.
At sentencing, Senior U.S. District Judge William Griesbach emphasized the prolonged nature and significant financial impact of Larson’s offense. Although Larson’s deteriorating health was a factor in his sentencing, Judge Griesbach ultimately decided on a two-year prison term.
The U.S. Attorney’s Office confirmed that Larson has been ordered to report to federal prison to begin serving his sentence.
“By withholding taxes from the employees of his business and willfully refusing to pay them to the United States, Mr. Larson not only breached the trust of his employees but also caused harm to all American taxpayers,” said Acting U.S. Attorney Richard G. Frohling. “I commend all involved in holding Mr. Larson accountable for his actions.”
