Terence Michael Clarke, a former Eden Prairie, MN resident who now lives in Florida, was charged with four counts of filing false tax returns for calendar years 1996-1999.

Clarke was the Chairman of the Board, President, Chief Executive Officer, and part-owner of Katun Corporation, a privately-owned Bloomington corporation that manufactures and sells parts and supplies for photocopiers and office equipment throughout the world.

According to the Information, between 1997 and 2001, Clarke intentionally omitted more than $3.4 million of income from his federal personal income tax returns that he filed with the Internal Revenue Service.  These false tax returns resulted in a tax loss of approximately $1.4 million to the United States.

Clarke allegedly underreported his income in each year by repeatedly omitting his receipt and use of various items of personal property which were acquired at his direction with Katun funds.  Many of the items were used in connection with two ranches he owned near Gunnison, CO.  The Information alleges that Clarke failed to report his acquisition or lease-hold use on more than 40 vehicles and types of motorized equipment, and his receipt and use of other personal items including jewelry, antique and other firearms, artwork, residential and construction expenses, and payment and gifts to other persons.

If convicted, Clarke fac es a maximum potential penalty of three years in prison and/or a $250,000 fine on each of the four counts.  Any sentence would be determined by a judge based on the federal sentencing guidelines.

The case is the result of an ongoing investigation by the Internal Revenue Service, Criminal Investigations and the Minnesota Department of Revenue.  Assistant United States Attorney Hank Shea and members of the Hennepin County Attorney’s Office are prosecuting different aspects of the case.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.