Auto Group Faces Charges Over $350,000 Tax Scheme

Walser Accused of Using Montana Shell Company to Avoid Taxes

Several reports indicate Edina-based Walser Automotive Group is facing criminal charges after investigators say the company avoided paying more than $350,000 in Minnesota vehicle taxes by routing new cars through a Montana shell company.

According to a criminal complaint filed in Hennepin County, Walser — which operates several dealerships across the Twin Cities metro — allegedly worked with a car broker to find high-end vehicles and run the titles through Montana, where there is no vehicle sales tax.

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Broker Allegedly Helped Move Vehicles Through Montana

The complaint names William Ward of Orono, who began working with Walser in 2017. Investigators say Ward would identify vehicles he believed could be resold at a profit and approach the owners directly. In some cases, he allegedly presented himself as an independent buyer rather than as someone working on Walser’s behalf.

Once the vehicles were purchased, they were titled through a Montana-based shell company to take advantage of that state’s lack of sales tax. The vehicles were then transferred into Walser dealerships as used inventory.

State Says Vehicles Were Never Truly “Used”

Under Minnesota law, there’s a key tax distinction between a truly used vehicle and one that’s held for resale. Investigators say several vehicles showed identical odometer readings at the time of purchase and resale, suggesting they were never actually used and didn’t qualify as used vehicles under state law.

The Minnesota Department of Revenue estimates that 34 vehicle sales tied to Minnesota should have generated about $350,745 in taxes.

Criminal Charges Filed Against Walser and Ward

As a result of the investigation, Walser Automotive Group has been charged with one felony count related to the unpaid taxes.

Investigators also allege Ward acted as an unlicensed motor vehicle broker by arranging vehicle sales for a fee. He is charged separately with felony motor vehicle tax evasion and a misdemeanor count of brokering motor vehicles without a license. Authorities say Ward did not hold a Minnesota dealer or broker license during the period covered by the charges.

Defense Says No Intent to Evade Taxes

Attorneys for both Walser Automotive Group and Ward deny the allegations, saying the use of Montana LLCs was not intended to evade taxes and was necessary to locate vehicles during pandemic-related shortages.