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Minneapolis (KROC AM News) - A Duluth businessman has been indicted by a federal grand jury in what prosecutors say was a large income tax scam.

Arraigned Thursday was 56-year-old Himon Shaked.

He owned several t-shirt and souvenir shops in Duluth and prosecutors say he listed his 18-year-old daughter as the owner “in order to hide and evade taxes on income he received from the company.”

Prosecutors say altogether, Shaked failed to report more than $4 million in income from 2013 through 2018 and evaded paying more than $800,000 in federal income taxes.

He is also accused of paying employees in cash to avoid federal payroll taxes.

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