A beleaguered Minneapolis landlord is facing more serious legal troubles, including five felony counts of tax evasion.
The charges, filed recently, allege that Steven Meldahl, 73, failed to pay nearly $30,000 in sales tax by falsely claiming that his business was a nonprofit organization while making purchases at big-box stores like Menards, Home Depot, and Best Buy, the Star Tribune reported.
The charges add to a slew of legal actions against Meldahl, all stemming from a lawsuit filed by the Minnesota attorney General last year, which led to him being ordered to pay over $1 million in legal fees for violating tenants’ rights, the outlet reported.
The charges against him include three counts of failing to pay sales tax and two counts of filing fraudulent sales tax exemption certificates.
According to the criminal complaint, Meldahl provided false information on certificates he signed with the three major retailers, claiming that his company, S.M.J. Properties Inc., was a “low income/sober home provider,” a “non-profit organization,” or a “charitable organization” to gain sales tax exemptions on purchases. The complaint states that Meldahl had been presenting false sales tax exemption certifications since as far back as 2009.
The Minnesota Department of Revenue found that from August 2015 to December 2020, Meldahl avoided paying an estimated $29,600 in sales tax across 634 transactions at Menards, 291 at Home Depot, and 75 at Best Buy.
Meldahl’s court appearance is scheduled for Aug. 29; he has not listed an attorney.
Meldahl’s legal issues extend beyond tax evasion. He has a history of significant housing code violations for his rental properties, accumulating more than 1,300 violations cited by the city of Minneapolis since 2009.
In 2021, he was fined $133,500 for severe housing code violations in his rental properties.
Additionally, Meldahl was involved in a lawsuit brought by Minnesota Attorney General Keith Ellison in 2019, wherein tenants testified about poor living conditions. In March 2022, Meldahl was ordered to pay a total of $1 million in legal costs as a result of this lawsuit.
— Ted Glanzer