Ex-business owner convicted of tax fraud and sentenced to prison

Asher Wagh, the owner of an ammunition component manufacturing business in Rapid City, was recently sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes to the government. The charges against Wagh were brought forth by a federal grand jury in February 2021 and included 10 counts of failure to withhold, properly account for, and pay over tax.

Despite withholding money from employees’ paychecks between 2015 and 2017, Wagh did not pay the IRS. According to court documents, he spent at least some of that money on his own personal use. In October 2023, Wagh pleaded guilty to one of the 10 counts in exchange for the dismissal of the other nine charges. At sentencing, he faced a maximum of five years in prison, a $250,000 fine and up to three years of supervised release. However, Chief Judge Roberto Lange ultimately sentenced him to 14 months in federal prison followed by two years of supervised release.

Wagh is currently held at the Pennington County Jail awaiting transportation to a federal prison. South Dakota crime statistics show that this type of tax evasion is not uncommon in the state. For more information on this topic or any other legal matters, contact Shalom Baer Gee at sgee@rapidcityjournal.com

By Editor

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