Feds: Medical Device Ceo Owes More Than $6 Million In Taxes

MINNEAPOLIS (AP) — A CEO of a suburban Minneapolis medical device company is accused of failing to pay more than $6 million in payroll taxes, interest and penalties to the Internal Revenue Service.

Larry Lindberg was charged Monday in federal court with one count of tax evasion. His lawyer said the former pharmacist and owner of Midwest Medical Holdings in Mounds View plans to plead guilty later this month.

“Larry felt bad about it,” defense attorney Tom Brever said Wednesday. “He knew he screwed up. ... He knew he had to make peace.”

The IRS opened its case against Lindberg in 2011, prosecutors said. Lindberg, 68, agreed to several payment plans over the years but ultimately defaulted on all of them. Authorities said he spent the money on real estate, personal travel and other non-business spending, the Star Tribune reported.

Brever said federal sentencing guidelines call for a prison term in the range of 21/2 years in prison. The plea agreement calls for Lindberg to pay back all of the money to the IRS.