RED WING, Minn. -- Ricky and Kelly Anderson were sentenced to 45 days each in the Goodhue County Jail for multiple felony tax fraud charges on Dec. 20, according to court documents.
As part of their conviction, the former owners of Kelly's Tap House Bar and Grill will pay more than $370,000 in restitution plus court-related expenses.
Ricky Duane Anderson and Kelly Jean Anderson were each convicted of three felony tax fraud charges. Ricky Duane Anderson was charged with false or fraudulent returns/preparation aid/advise. Kelly Anderson was charged with two counts of failure to file tax returns and one count of false or fraudulent returns/file with commissioner.
The Minnesota Department of Revenue charged the Andersons with 18 tax-related felonies between the two in August 2018.
In Aug. 29, 2018, the Department of Revenue said Kelly Anderson owed more than $187,900 in individual income tax, penalties and interest. The restaurant owed more than $183,800 in sales tax, penalties and interest.
Ricky Anderson, who was in charge of the day-to-day operations at the bar, allegedly made adjustments to his wife's income tax returns as they were being prepared by their accountant, according to the Department of Revenue. Ricky Anderson also adjusted the total yearly sales for the restaurant that were included as part of Kelly Anderson's income.
Friday's sentencing document states that Ricky Anderson must pay $371,771.21 in restitution. Court costs, criminal and traffic surcharge and law library fees bring the total to $373,356.21. Kelly Anderson will pay $1,585 in additional fees.
The Andersons will be on supervised probation for five years. As part of their sentence, they cannot work in any fiduciary capacity during their probation but may continue to work in the bar and restaurant.
The Andersons have owned Kelly's Tap House Bar and Grill for 18 years. Since the charges were filed they have transferred ownership to their daughter, Mallary Anderson.
On Nov. 12, the Red Wing City Council voted to purchase property between Kelly's Tap House Bar and Grill and Bayside Steakhouse from Kelly Anderson for $110,000. A proposed walking bridge there would link Old West Main and the riverfront. A story in the Republican Eagle on Nov. 16 said Anderson can buy back the land for $110,000 if the bridge plan is voted down.
The Andersons were sentenced in Dakota County Court by Judge Karen Asphaug. She hears court cases in Goodhue and Dakota counties, so it is common for people in one county to be seen elsewhere, Goodhue County Court Administration said on Friday afternoon.
Ricky and Kelly Anderson were not booked into the Goodhue County Jail on Dec. 20. The pair will serve their sentences on a later date.