One Minnesotan is in big trouble this tax season — accused of underreporting his personal and business income by nearly $2 million and withholding more than $186,000 in unpaid taxes.
Andrew Clayton Freeburg, 45, of Norwood Young America, faces charges of tax evasion and fraud between 2020 and 2024. But it’s not the first time he’s been charged (1).
Freeburg already pleaded guilty to tax fraud in 2024. The case raises questions about tax crime and enforcement in the U.S.
The Minnesota Department of Revenue’s charges against Freeburg are extensive. Investigators (2) allege that he filed fraudulent tax returns and in one case failed to file a tax return altogether.
As CBS News (3) reports, investigators add that Freeburg falsely registered his business, E-Motors, in his elderly father’s name and spent business funds on personal things like a gym membership, travel and more.
On top of…
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.