Paul L. Caron

Friday, June 23, 2017

Retired U.S. Tax Court Judge Sentenced To 34 Months In Jail For Tax Fraud Committed While She Sat On The Court

TCKFollowing up on my previous posts (links below): Minnesota Lawyer, Former Tax Judge Sentenced to Prison for Tax Fraud:

Former Minnesota Tax Court Judge Diane Kroupa is headed to prison for — wait for it — tax fraud. So is her husband, who received a shorter sentence.

Kroupa, 61, was sentenced to 34 months and Robert Fackler, 63 was sentenced to 24 months. They must pay $457,104 in joint restitution.

Both defendants entered guilty pleas and were sentenced June 22 by Judge Wilhelmina M. Wright in U.S. District Court in St. Paul. In addressing Kroupa’s extensive tax fraud committed while a sitting U.S. Tax Court judge, Wright stated, “When a person in a position of trust violates that trust, the public is a victim,” and further noted that Kroupa’s fraud undermined the trust in the justice system.

Kroupa was a Minnesota Tax Court Judge from 1995 to 2001 and was chief judge from 1998 to 2001. She was appointed by President George W. Bush as a federal judge on the United States Tax Court, on June 13, 2003, for a term ending June 12, 2018. She retired from the Tax Court on June 16, 2014.

Prior TaxProf Blog coverage:

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In all fairness, DC is expensive.

Posted by: YAG | Jun 29, 2017 6:45:54 PM

I think I've commented before that she should be sentenced to thirty years in prison, not three years. But I think she should keep her pension. It's a contractual obligation, that employees get to keep even if they're fired for cause. Criminal fines, as well as civil penalties, might be appropriate--- were they available in a case like this?

Posted by: Eric Rasmusen | Jun 29, 2017 8:59:37 AM

I would hope that she would also lose any and all government retirement benefits.

Posted by: Allan E | Jun 26, 2017 1:23:03 PM

Good, I'm happy to see the jail time and fine! Was she disbarred as well? If not, that needs to be done as well..

Posted by: Cara Bu | Jun 26, 2017 10:01:54 AM

Taxes are for little people.

Posted by: Jim Brock | Jun 26, 2017 8:54:07 AM