La Crosse resident sentenced to one year and one day in prison for tax fraud

LA CROSSE, Wis. (WBKT) - A U.S. District Court in Wisconsin sentenced Victor Karpiak, 64, to one year and one day in prison, one year of supervised release and a $150,000 fine for filing a false tax return. Karpiak was the Chief Executive Officer of a Pacific Northwest community bank in Washington, but moved to La Crosse in 2013.

According to records from the case, from 2010 to 2016 Karpiak was a trustee and consultant for a woman who was the widow of man who had a significant account with the bank. Karpiak paid himself more than $3 million dollars during this time, but reported less than a third of that money on his taxes.

Karpiak paid more than $1 million on his tax obligation as part of his sentencing.

Prosecutors wrote that, "particularly high-earners such as Karpiak --- to pay a modest portion of earnings toward communal projects and programs…  (T)he true victim of Karpiak’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” in their sentencing memo.

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.

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