Walser Automotive Charged in Minnesota Vehicle Tax Evasion Case
BY MN CRIME STAFF
via Walser Automotive Group
A major Twin Cities auto dealership group and a vehicle broker are charged in a scheme to evade Minnesota taxes by routing high-end vehicle sales through shell companies.
Prosecutors allege the company and the broker participated in a scheme that resulted in more than $350,000 in estimated unpaid motor vehicle tax payments between March 2020 and August 2023.
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According to the criminal complaint, Walser Automotive Group, based in Edina, is the parent company of several Walser-branded new car dealerships across the Twin Cities. It also controls Walser Preowned Sales, a licensed used motor vehicle dealer with offices in Edina and a physical location in Eagan. Investigators say the structure of those businesses was used to move new vehicles through Montana LLCs in order to bypass Minnesota tax and dealer licensing requirements.
Prosecutors allege the operation relied heavily on William Fredrick Ward, 58, of Orono, an experienced automotive broker who worked under contract with Walser beginning around 2017, according to the court documents. Ward is charged separately with felony motor vehicle tax evasion and a misdemeanor count of brokering motor vehicles without a license. Court records show Ward did not hold a Minnesota motor vehicle dealer or broker license during the period covered by the charges.
The complaints describe how Ward would locate high-end new vehicles that he believed could be re-sold for a profit during the pandemic-era vehicle shortage. He would arrange the purchase of those vehicles, sometimes representing himself to sellers as an individual buyer rather than as an agent for Walser. Prosecutors say Ward then directed sellers to title the vehicles in the name of Montana limited liability companies that existed only on paper, taking advantage of Montana’s lack of a motor vehicle sales tax.
Investigators allege Walser employees approved the purchases and wired funds for the vehicles, which were titled and registered in Montana under the shell companies’ names. The vehicles were then assigned to Walser Preowned, which treated them as used vehicles and sold them tax-free under its used dealer license. Ward and Walser allegedly split the profits from those sales evenly.
State law defines a vehicle as “used” only after it has been placed into actual operation and not held for resale. Prosecutors say many of the vehicles involved had identical or nearly identical odometer readings at purchase and resale, indicating they were never driven and therefore did not qualify as used under Minnesota law.
The investigation began after an Illinois Department of Revenue referral in late 2021 flagged vehicles purchased in Illinois that were registered in Montana under the name “Walser Investments,” while Ward, a Minnesota resident, appeared to be the person involved in the transactions. Investigators reviewed large volumes of records and interviewed Ward and Walser employees as part of the probe.
The Minnesota Department of Revenue later estimated the unpaid motor vehicle tax at no less than $350,745 tied to 34 vehicles with documented connections to Minnesota. Prosecutors note that figure does not include dozens of additional vehicles allegedly moved through Montana without a physical Minnesota connection, nor does it include interest or penalties.
Investigators also allege Ward acted as an unlicensed motor vehicle broker by arranging sales between buyers and sellers for a fee, and that Walser Preowned sold new vehicles without holding a new motor vehicle dealer license. Prosecutors say Walser employees were deeply involved in processing paperwork and payments tied to the transactions and had notice that Ward was presenting himself as a personal buyer to dealers.
In interviews, Ward and Walser representatives denied the use of Montana LLCs was intended to evade tax, telling investigators the structure was necessary to obtain the vehicles for re-sale. Prosecutors say the statements were inconsistent and contradicted by internal emails and business practices documented during the investigation.
“We have not yet been provided a copy of the complaint, so we cannot speak to the details at this time,” Walser Automotive Group CEO Andrew Walser said in a statement provided to the Minnesota Star Tribune newspaper.
“We do not believe we did anything inappropriate and will be prepared to share those facts in court,” Walser said in the statement. “We’ve built our business in Minnesota over the past 70 years by living out our core value to always do the right thing.”
MN CRIME requested additional comment from the company, though we did not receive a response.
Both defendants were charged by summons. Walser Automotive Group faces a single felony count, while Ward faces one felony and one misdemeanor charge, with up to five years in prison possible on the felony charge.
Walser operates 16 vehicle dealerships in the metro area under brands including Chevrolet, Buick, Honda, Nissan and Kia, with several dealerships in Kansas.
