North Sioux City Man Sentenced for Tax Returns Charges

SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a North Sioux City, South Dakota, man convicted of one count of False Income Tax Return and three counts of Willful Failure to File Tax Returns. The sentencing took place on March 27, 2023.

James R. Winckler, age 60, was sentenced to three years of probation, a fine in the amount of $25,000, and a special assessment to the Federal Crime Victims Fund in the amount of $175.

Winckler was indicted by a federal grand jury in April of 2021. He pleaded guilty on October 3, 2022.

The conviction stemmed from Winckler’s actions while serving as the bookkeeper, daily operations manager, and president of a small cosmetics business known as Medco Lab, Inc.

In 2016, Winckler willfully made and filed his individual 2012 income tax return that understated his income by approximately $450,000. He received the funds from Medco Lab, Inc., to purchase his home in Dakota Dunes. As a result of his guilty plea, Winckler was required to pay $150,312 in taxes on his unreported income.

Winckler also willfully failed to file tax returns for the years 2015, 2016, and 2017. Winckler received income from Medco Lab, Inc., but failed to file tax returns until after he learned the Internal Revue Service (IRS) was investigating him. Winckler knew he was required by law to make and file income tax returns to the IRS specifically stating his gross income.  

This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.