Stillwater Mayor Responds to FBI and IRS Raid at His Business

Updated: 04/02/2014 9:19 AM
Created: 04/01/2014 10:00 PM
By: Beth McDonough

Two weeks after an FBI and IRS raid at his business, Stillwater Mayor Ken Harycki is answering questions.

Before a city council meeting Tuesday, he talked about the day federal agents came knocking on the door of his payroll and accounting firm, Customized Payroll Solutions. It handles payroll and accounting for hundreds of people and businesses. 

One client in particular, a company Harycki didn't want to name, was the focus of agents.

"They hinted at several things and I kinda connected the dots, I have a feeling what they're looking at. It's a client I did payroll for back in 2011," Harycki said.

Harycki denied accusations that his business underreported taxes.

KSTP reporter Beth McDonough obtained logs and paperwork in which former employees claim Harycki falsified documents to the state and federal governments. A letter from the Minnesota Department of Economic Security orders Customized Payroll Solutions to turn over past due taxes.

Harycki says while being questioned for 12 hours, agents did take his computer server.

While investigators are mum on the status and target of the investigation, Harycki says this has been hard.

"It's never a comfortable feeling that's why we cooperated fully," Harycki said.

During the city council meeting, people were given the chance to ask questions. They passed. Folks told KSTP they're waiting for the outcome of the investigation.

No one has been arrested.

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