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Published December 08, 2009, 10:02 AM

Contractors face prison time

FARGO, N.D. (AP) — The owners of a Morris, Minn.-based construction company each face up to five years in prison for orchestrating a tax evasion scheme. Brothers Joe Riley and John Riley of Riley Bros. Construction Inc., which has done a lot of work in the Fargo area, pleaded guilty last month in federal court in Minnesota to conspiring to defraud the U.S. government and avoid tax payments.

FARGO, N.D. (AP) — The owners of a Morris, Minn.-based construction company each face up to five years in prison for orchestrating a tax evasion scheme.

Brothers Joe Riley and John Riley of Riley Bros. Construction Inc., which has done a lot of work in the Fargo area, pleaded guilty last month in federal court in Minnesota to conspiring to defraud the U.S. government and avoid tax payments.

A sentencing date was not immediately scheduled.

The brothers also face charges of falsifying individual and corporate tax returns, but Minnesota U.S. attorney spokesman David Anderson says those charges could be dismissed when the Rileys are sentenced on the conspiracy charge.

Joe Riley declined comment on the case or the impact it might have on his company's future contracts in the Fargo area. Fargo City Attorney Erik Johnson said he had not yet heard about the federal case.

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