Former Stillwater mayor sentenced for involvement in tax fraud conspiracy

- The former Mayor of Stillwater has been sentenced to a year and a day in prison after pleading guilty for his involvement in a tax fraud conspiracy.

In 2007, Kenneth Frank Harycki's business provided payroll services for Model Health Care and learned payroll taxes were being deducted from employees' wages, but weren't being paid to the government. Harycki also learned the money was being used for personal purchases. The company was run by two brothers, who recently pleaded guilty for their involvement in the conspiracy.

Harycki created another company, MKH Holdings, which funneled money to those in the conspiracy. Harycki's involvement caused more than $2 million of criminal tax loss.

“Mr. Harycki, a former elected official and certified public accountant, consciously chose to assist a criminal conspiracy,” said Assistant U.S. Attorney Robert Lewis. “He later made the right choice to plead guilty and assist in the investigation. Today’s sentencing should serve as a reminder that anyone who attempts to cheat the tax system, regardless of their position or status, will be held accountable for their actions.”

Harycki will also serve three years of supervised release and is ordered to pay $2,176,126.86 in restitution.

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