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Civil Complaint Filed Against Orono Business Man To Recover $2.7 Million In Assets That Were Part Of
Civil Complaint Filed Against Orono Business Man To Recover $2.7 Million In Assets That Were Part Of A Tax Fraud SchemeUnited States Attorney Erica MacDonald today announced the filing of a civil complaint against SCOTT PHILLIP FLYNN, SHAWN M. GRIMM, WATERTOWN PROPERTY, LLC, and DESERT INN HOLDINGS, LLLP, seeking to liquidate millions in assets purchased with income that was part of FLYNN’s tax fraud scheme.
In January 2019, FLYNN was convicted of a multi-million dollar tax fraud scheme and, as part of his sentence, the Court ordered FLYNN to pay more than $5 million in restitution. FLYNN also owes over $652,000 in restitution in connection with his previous conviction for wire fraud and securities fraud in 1999. From July 2007 to January 2019, FLYNN resided in a $2.7 million mansion located in Orono, Minnesota, which FLYNN admittedly purchased with income that was part of his tax fraud scheme.
As stated in the complaint, the United States alleges that FLYNN has used multiple entities under his control, including WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, to protect the equity in the Orono mansion from his creditors. GRIMM, FLYNN’s sister, is listed as a manager and/or general partner of WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, the purported owners of the Orono mansion. The United States alleges that WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP do not function as operational, solvent businesses but, instead, serve as alter egos of FLYNN intended to enable him to protect the equity in the Orono mansion and avoid his creditors, including the United States.
The United States is seeking a declaratory judgment that WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, the purported owners of the Orono mansion, are alter egos of FLYNN. The United States is also seeking to liquidate the assets held by those entities, namely the Orono mansion, so that the proceeds can be applied to FLYNN’s restitution obligations.
Read more: https://www.justice.gov/usao-mn/pr/civil-complaint-filed-against-orono-business-man-recover-27-million-assets-were-part-tax