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Authorities allege a 61-year-old Savage man “knowingly and willfully” committed tax crimes over a span of several years, according to felony charges filed this month.

Ralph George Bone is charged in Scott County District Court with four felony counts of failing to file individual income tax returns.

Charges filed Oct. 7 allege Bone failed to file his Minnesota State Income Tax Return from 2015-2018.

According to charging documents, an investigator with the Minnesota Department of Revenue began investigating Bone and his wife last year because Bone had not filed tax returns since 2012.

Property tax records show the couple’s Savage residence in the 8000 block of 152nd Place to be valued at $531,600 in 2020.

Last year, the couple purchased a Napa, California property for approximately $1.3 million, charges state, and the property taxes are mailed to Bone’s home in Savage.

Investigators obtained Bone’s W2 records from 2013-2018, which showed he earned approximately $8.8 million in wages while employed by Guy Carpenter and Company LLC.

In the time frame relevant to the investigation, from 2015-2018, Bone’s gross income was approximately $4.7 million.

Guy Carpenter, a subsidiary of Marsh & McLennan Companies, is an international commercial insurance brokerage firm that also provides other financing and consulting services.

According to the criminal complaint, the Minnesota Department of Revenue conducted a Tax Deficiency, which is prepared when an individual fails to file their state income taxes and ignores all Commissioner Filed Returns.

“A CFR occurs when the Department of Revenue files a tax return based upon past filings,” charges state. “However, these CFRs clearly inform the individual that the tax payer still has an obligation to complete his or her taxes as the CFR does not take the place of the actual tax return.”

An audit conducted by a tax specialist with the Minnesota Department of Revenue determined Bone owned the state approximately $140,858 in back taxes, interest and penalties for the years 2015-2018.

“The defendant has shown a willful ignorance in filing his income taxes on multiple occasions and only when confronted with a Commissioner Filed Return (CFR) does he and his wife respond,” charges state. “The Bones have filed their state income taxes in the past, have responded to CFRs, have had their wages levied and have contacted the Department of Revenue in the past proving that they are well aware of their responsibility to file their state income taxes.”

Investigators made several attempts to contact Bone and his wife, according to charges.

In March, an investigator visited their home and knocked on the door.

A woman who identified herself as Bone’s wife answered via the home’s interactive doorbell camera system and the investigator asked to speak with her regarding Bone’s state income tax.

“She stated that they were out of town and requested the investigator leave his card in their mailbox so she could contact him the following week,” charges state.

The investigator left his card in the mailbox, later attempted email correspondence and left voicemails, charges state.

On April 9, a certified letter was sent to the residence in Savage, but the investigator did not receive any correspondence back.

On April 15, an investigator returned to the home.

The residence appeared empty, charges state, but decorations had been taken down since the investigator’s previous visit in March.

If convicted, each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.

Bone’s first court appearance is scheduled for Jan. 22, 2021.


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