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The owner of a number of Duluth t-shirt and souvenir shops has been sentenced to a year and a day in prison and ordered to repay more than $600,000 in restitution after pleading guilty to tax evasion.

The U.S. Attorney's Office of Minnesota said Shimon Shaked, 57, listed his teenage daughter as the nominal owner of his holding company in order to hide or evade taxes on income he received from his businesses.

He operated Duluth Stores, the parent company for a number of souvenir shops in the Canal Park tourist zone, including I Love Duluth, I Love Duluth 2, Up North-The Good Life, and the Lake Life, and another souvenir store in Marquette, Michigan.

He formed the holding company for his businesses, ALMS18, LLC, in 2012, and the U.S. Attorney's Office says while he reported the credit card sales for his stores, he failed to pay taxes on most of the cash sales.

"To further conceal his income, Shaked used the cash from the unreported cash sales to pay for personal expenses and to pay some of his employees' overtime wages in cash," a press release from the U.S. Attorney's Office said. 

He pleaded guilty to tax evasion in October, and this week was sentenced to one year and one day in prison, and ordered to repay $620,362 in owed taxes.

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