Duluth t-shirt and souvenir shop owner jailed for tax evasion

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The owner of a number of Duluth t-shirt and souvenir shops was sentenced to a year and a day in jail and ordered to pay more than $600,000 in restitution after pleading guilty to tax evasion.

The Minnesota U.S. Attorney’s Office said Shimon Shaked, 57, listed his teenage daughter as the nominal owner of his holding company in order to hide or evade taxes on income he received from his businesses.

He operated Duluth Stores, the parent company for a number of gift shops in the Canal Park tourist area, including I Love Duluth, I Love Duluth 2, Up North-The Good Life and Lake Life, and another boutique in souvenirs in Marquette, Michigan.

He formed his businesses’ holding company, ALMS18, LLC, in 2012, and the U.S. Attorney’s Office said that although he reported credit card sales for his stores, he did not pay any taxes on most cash sales.

“To further conceal his earnings, Shaked used money from unreported cash sales to pay his personal expenses and to pay cash for some of his employees’ overtime,” a press release from the U.S. attorney’s office said.

He pleaded guilty to tax evasion in October and was sentenced this week to a year and a day in jail and ordered to repay $620,362 in taxes owed.

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