Two years in prison for ex-Twin Cities medical device CEO who dodged $6M in taxes

A former Twin Cities medical-device firm CEO has been sentenced to two years in prison for failing to pay several years of payroll taxes, interest and penalties totaling more than $6 million while living what prosecutors called "a fairly extravagant lifestyle."

Larry W. Lindberg, 68, a former pharmacist and owner of Midwest Medical Holdings in Mounds View, was sentenced Wednesday in U.S. District Court in St. Paul after pleading guilty in April to one count of tax evasion.

Lindberg's sentence also calls for him to come up with what he owes the IRS. Prosecutors have estimated that Lindberg owes the IRS more than $4.4 million in taxes, with interest and penalties bringing the overall amount to $6,058,980.

Lindberg's attorney, Thomas Brever, said Lindberg resigned as CEO of the company in 2021. He remains in a consulting capacity for the company.

Brever argued ahead of sentencing for his client to be spared prison. He pointed to his client being a law-abiding citizen until this case, along with Lindberg's age and health problems. Rather, the attorney continued, Lindberg should be sentenced to home confinement and community service.

"Mr. Lindberg's medical and emotional issues are so serious that custodial confinement in a facility would be tantamount to a death sentence," Brever wrote to the court.

The U.S. Attorney's Office countered that Lindberg should be imprisoned for slightly more than three years.

The company, which is still operating, has between 160 and 200 employees with annual revenue of about $17 million. A staff member at its offices said Lindberg was still its CEO.

According to the plea agreement and other court documents:

Beginning in 2011, the IRS spent years trying to collect on the tax debt from Lindberg, CEO and founder of the pharmaceutical and medical equipment company. He entered into several agreements with the IRS to make regular payments toward the debt, but he ultimately defaulted on each agreement and instead took steps to hide his assets from the IRS in order to evade collection.

Lindberg regularly diverted money from his company to other entities and used it to buy real estate and other assets and to fund his personal lifestyle. He also put assets in the name of his children, including an airplane, a hangar and two vacation homes in Florida.

While dodging taxes, prosecutors told the court in a pre-sentence filing, Lindberg "lived a fairly extravagant lifestyle. He is a private pilot and owner of multiple airplanes. He regularly traveled internationally to places like Paris and Dubai. ... He dined at expensive steakhouses."

Late last year, the state pharmacy board revoked Lindberg's license over unrelated matters, namely allegations of work being done in unsterile conditions, according to board records.