Ex-business owner convicted of tax fraud and sentenced to prison

Rapid City Ammunition Component Manufacturer Owner Sentenced to Federal Prison

Asher Wagh, co-owner of a ammunition component manufacturing business in Rapid City, was sentenced to federal prison for failing to pay $273,000 in payroll taxes to the government. Chief Judge Roberto Lange ordered Wagh to serve 14 months in prison followed by two years of supervised release. The owner pleaded guilty to one count of failure to withhold, properly account for, and pay over tax.

Wagh withheld money from employees’ paychecks between 2015 and 2017 but did not pay the IRS. According to court documents, he spent at least a portion of the money on his own personal use. In February 2021, a federal grand jury indicted Wagh on 10 counts of failure to withhold, properly account for, and pay over tax. The company dissolved in July 2022 and Wagh was sentenced on one count of the indictment in October 2023. In exchange, the government agreed to drop the other nine charges.

At sentencing, Wagh faced a maximum sentence of five years in prison and a $250,000 fine along with up to three years of supervised release. He is currently being held at the Pennington County Jail awaiting transportation to federal prison.

By Editor

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