Skip to main content

Former Stillwater mayor pleads guilty to federal fraud charges

  • Author:
  • Updated:
    Original:

Former Stillwater Mayor Ken Harycki pleaded guilty Thursday to a charge of conspiring to defraud the federal government.

Harycki, 51, was charged last month. He was mayor from 2006 until November of 2014, when he abruptly resigned from office.

According to charges, Harycki, the owner of Customized Payroll Services in Stillwater, prepared and filed fraudulent tax forms for the clients – brothers Thurlee and Roylee Belfrey, both 48, of St. Paul – which helped them conceal over $10 million in tax liabilities, the Pioneer Press reports.

Based on the offense level outlined in the plea agreement, sentencing guidelines call for 37-46 months in prison and a fine of $3,000-$30,000, however Harycki's attorney says he may receive a lesser sentence if he provides assistance in another federal case against the Belfreys, the Stillwater Gazette reports.

"If his cooperation results in conviction of other individuals, the government has agreed to move for a reduction of his sentence," Thomas Brever told MPR News. "That technically is a departure from the sentencing guidelines."

A sentencing date hasn't been set.

The Belfrey brothers ran health care businesses, and U.S. Attorney Andrew Luger says Harycki knew they were collecting payroll deductions from employees, but weren't paying taxes to the federal government.

The Belfreys were arrested Dec. 16, 2014, and charged in U.S. District Court in St. Paul with health care fraud and conspiracy to defraud the United States, the Pioneer Press notes. Their jury trial is set to begin Feb. 17.

Next Up

tunnel-g713f450fe_1280

Officials investigating possible spill near Enbridge pipeline in Wisconsin

It comes as another water spill is being reported at Enbridge's Line 3 pipeline in Minnesota.

weather

Lightning strike outside White House kills Wisconsin couple

The bolt of lightning was captured on video by a local TV camera.

USATSI_18324496_168397563_lowres

NASCAR star Kyle Busch flees Mall of America after shooting

Busch was at the megamall with his wife and son when a gunman opened fire Thursday.

ambulance

Triple-fatal crash involving car full of Missourians in Minnesota

Four people from Missouri were in a vehicle that collided with a semi.

Screen Shot 2022-08-03 at 7.58.19 AM

Teen charged with murder of 15-year-old at light rail station

The victim died from a gunshot wound to the chest following the shooting Tuesday.

Depressaria depressana

Invasive moth flying around Minnesota for first time

The little bugger was confirmed in Wisconsin in 2018 and Iowa in 2020.

Screen Shot 2022-08-04 at 4.49.39 PM

Police update MOA shooting: Search for 2 suspects ongoing

Three shots were fired at the Nike store inside the Mall of America.

covid

Minnesota's COVID-19 update for the week ending Tuesday, August 2

Hospitalizations increased nearly 20% from July 26 to August 2.

Screen Shot 2022-08-04 at 1.22.41 PM

Deaths of 2,500 fish in Minnesota trout stream unexplained

Trout anglers are concerned the incident represents a larger problem.

Related