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Wisconsin Rapids contractor pleads guilty to tax evasion

A contractor in Wisconsin Rapids pleaded guilty in federal court this week to a tax-evasion charge he was slapped with for pocketing checks from clients over a three-year period.

Russell Broga, 51, the owner and operator of the asphalt-paving contractor A-1 Services, pleaded guilty to one count of tax evasion on Monday, according to a news release from the U.S. Attorney’s office for the Western District of Wisconsin. Under a plea agreement he reached with prosecutors, he could face up to five years in federal prison and a $250,000 fine. A sentencing hearing in his case is scheduled for Dec. 19.

During a plea hearing in the Western District of Wisconsin federal court on Monday, Broga admitted that he cashed checks from clients into his personal bank account instead of depositing them into an account for his business. Broga then held these receipts back from his bookkeeper and tax-return preparer for three years. By depositing the checks into his personal account, Broga avoided paying $147,682 worth of taxes.

A-1 Services, which has been in Wisconsin Rapids since 1996, does not only asphalt-paving work but also maintenance, tree removals and other jobs. Broga ran the entire business, hiring and firing employees, bidding on jobs and overseeing its finances.

Authorities pursued charges against Broga following an investigation by the Internal Revenue Service.

About Nate Beck, [email protected]

Nate Beck is The Daily Reporter's construction staff writer. He can be reached at (414) 225-1814 (office) or 414-388-5635 (mobile).

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