Washington County festival promoter charged with tax evasion

A former Stillwater festival promoter who was convicted last year of issuing worthless checks has been charged with tax evasion.

David Eckberg, 63, of Baytown Township, now faces three felony counts of failing to pay sales, alcohol and out-of-state entertainment taxes incurred during the long run of Lumberjack Days, a regional festival that was held in downtown Stillwater every July until it was canceled in 2011.

"Dave Eckberg had very poor record keeping … and it led to a lot of financial issues," said Tom Brever, Eckberg's attorney. "This really is a further chapter of the financial troubles of Lumberjack Days that we're just trying to put to closure."

According to a complaint filed Wednesday, the Washington County Attorney's office asked the Minnesota Department of Revenue's Criminal Investigation Division in January 2012 to investigate possible felony tax violations committed by Eckberg. The investigation uncovered a sales and alcohol debt of more than $100,000.

The Stillwater police and the Washington County Sheriff's Office first investigated Eckberg's finances shortly after the 2011 festival ended. County Attorney Pete Orput filed criminal charges against Eckberg in late 2012 after flagging the state investigators to the possible tax violations.

Eckberg pleaded guilty last year to issuing worthless checks in the amounts of $20,000 to Icabod Productions, $10,000 to Stillwater Blue Line Boosters, $5,800 to Needham Distributing, and $2,200 to Hohenstein's Inc., a beer distributor. In addition to being required to pay off each worthless check issued, Eckberg was sentenced to a year of probation, a $1,000 fine and 240 hours of community service.

The new charges filed this week include two counts of failing to pay sales and alcohol taxes, and one count of failing to pay an out-of-state entertainment tax within the last three years of the festival, according to the complaint.

"The [tax violation] case was put on hiatus … while I was prosecuting Mr. Eckberg for the felony check cases," said prosecutor Rick Hodsdon. "Once those were concluded then we … picked up speed again."

Eckberg, as owner of St. Croix Events, "knew or should have known as a professional promoter the sales made by the Lumberjack Days Festival were subject to Minnesota Sales Tax and Alcohol Taxes," according to the complaint filed this week.

But Brever said that at the time of the alleged tax violations, Eckberg's lawyers advised him that the sales might be exempt under state law.

Brever said he is negotiating a resolution with state officials and is contemplating having Eckberg plead guilty to the tax charges and pay a sum yet to be determined.

Eckberg is scheduled to appear in court May 7 on the charges.

Blair Emerson is a University of Minnesota student reporter on assignment for the Star Tribune.