Your Complainant is a Revenue Special Investigator with the Criminal Investigation Division (CID) of the Minnesota Department of Revenue (MDOR), and in that capacity, is familiar with tax procedures and requirements of the State of Minnesota and has access to tax records for both individuals and business entities in the State of Minnesota. In addition to reviewing MDOR records in this case, Complainant also subpoenaed documents and interviewed witnesses. Based upon that investigation, your Complainant believes the following facts establish probable cause: In February 2025, the MDOR initiated an investigation into tax returns filed by CHRISTINE CONRAD (Defendant), a Clay County, MN resident, owner of REESE & RILEY’S OLIVE OIL & BISTRO BAR and REASONS LLC, a Clay County, MN business, based on information suggesting Defendant was filing false income tax returns by underreporting her actual income and fraudulently receiving public assistance by providing false income information dating back to at least 2019. The investigator reviewed Defendant’s MDOR records regarding her Individual Income Tax account and reported returns.
Each return filed by Defendant indicated that her principal business or profession is “Restaurant,” and the name of her business is “Reasons LLC,” with a Moorhead, MN address. This is the parent company of Defendant’s business, and Defendant is the sole corporate officer for the business. The Adjusted Gross Income (AGI) that Defendant reported from 2019 through 2024 ranged from a low of $17,332 to a high of $28,452. She reported zero ($0) state income each year, except in 2020 when she reported $7,102 in state wages.
The investigator reviewed Defendant’s bank records, mortgage documents, multiple loan applications, other financial documents and conducted a lifestyle analysis. Defendant’s social media presence dates back to 2021 and suggests Defendant traveled in 2023 and 2024 to Nashville, New York, Las Vegas and Greece, and purchased a brand-new jet ski in 2025. The business’s social media page dates back to 2018 and indicates Defendant offers many services subject to MN sales tax. The business’s active website indicates the same.
Defendant has three vehicles, four trailers, one pontoon boat, and three jet skis currently registered in her name. In May 2023, Defendant bought a boat valued over $105,000.00. Defendant traded in an older boat, valued about $63,000, and paid off the remaining balance of over $44,000.00 in cash, a sum greater than the $17,332.00 she reported as her AGI for tax year 2023. In February 2024, Defendant qualified for a lease on a new vehicle valued over $40,000. Defendant stated on the credit application that she owned Reasons LLC for the last 10 years, her annual salary is $120,000, she listed her business address as her home address, and that she was currently renting with a payment of $1,595.00. Defendant made a down payment for the car of over $4,500.00 in cash and has a lease payment of $558.32/month ($6,699.84/year). In August 2024, Defendant qualified for a mortgage on a new-construction home with a final closing cost of about $560,000.00. Defendant stated on the loan application that she earned $13,307/month in income ($159,684 /year) as the owner of Reason’s LLC. At closing, Defendant provided the last 12 months of multiple bank statements showing that she had over $150,000.00 in her personal and business bank accounts.
