De Smet Business Owners Sentenced to Federal Prison for $610,000 Tax Fraud
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De Smet Business Owners Sentenced to Federal Prison for $610,000 Tax Fraud

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Northeast Radio SD News – De Smet, SD - Two owners of a De Smet manufacturing company have been sentenced to federal prison and home confinement for failing to pay over $600,000 in employment taxes to the IRS.


Chief Judge Roberto A. Lange sentenced Michael Wiese, 66, and Audrey Saylor, 65, on March 18, 2026, following their guilty pleas in December 2025. Both were convicted of Willful Failure to Collect or Pay Over Employment Tax and Aiding and Abetting.


The Sentences

According to the U.S. Attorney’s Office, both defendants received identical sentences:

·         Three months in federal prison.

·         Three months of home confinement.

·         Three years of supervised release.


The pair was also ordered to pay $610,000 in restitution jointly. Additionally, each must pay a $100 special assessment to the Federal Crime Victims Fund.


Details of the Case

Wiese and Saylor were the co-owners and operators of American Engineered Products, LLC (AEP). This De Smet-based business designs and manufactures bases for casino slot machines and cash kiosks.


Federal prosecutors stated that between 2017 and 2020, the owners exercised total control over AEP’s business affairs, including bookkeeping and the issuance of paychecks. While they withheld federal income taxes, Medicare, and Social Security taxes from their employees’ paychecks, they willfully failed to pay those funds over to the IRS.


The IRS-Criminal Investigation, which led the inquiry, noted that this conduct continued until January 2021.


“A Form of Theft”

U.S. Attorney Ron Parsons characterized the actions as “a form of theft from the government” and noted that the Financial Litigation Unit will work to recover the stolen funds for taxpayers.


William Steenson, IRS-CI Special Agent in Charge, emphasized the human cost of the crime. “It harms the future Social Security and Medicare benefits of the employees,” Steenson said. “Business owners have a responsibility to withhold the taxes from their employees’ pay and remit them to the IRS.”


Next Steps

Saylor is scheduled to report to the U.S. Marshals Service in late March 2026 to begin her sentence. Wiese is ordered to report in early July 2026.

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