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Man pleads guilty to filing fraudulent tax returns for North Dakota clients

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Man pleads guilty to filing fraudulent tax returns for North Dakota clients


FARGO, N.D. (Valley News Live) – A former tax return preparer, who provided services to clients in North Dakota, pleaded guilty Wednesday to five counts of preparing false tax returns for clients.

According to court documents and statements made in court, Joseph Korha, currently of Minneapolis, Minnesota, worked as a tax return preparer for a business located in Phoenix, Arizona.

In 2019, Korha prepared and submitted more than 100 fraudulent returns for clients, many of whom resided in the Fargo area.

Korha claimed false tax credits and fictitious business profits and losses on these returns, which inflated his clients’ tax refunds. In total, Korha caused a tax loss to the IRS of approximately $294,000.

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Korha is scheduled to be sentenced on Monday, June 3, 2024, at 10 a.m. He faces a maximum penalty of three years in prison for each count of filing a false tax return.

He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mac Schneider for the District of North Dakota made the announcement.

“This guilty plea is a victory for honest taxpayers,” Schneider said. “Nobody likes taxes, but when a preparer willfully commits fraud, that’s a crime that hurts the millions of Americans who work with trusted professionals to follow the law. I want to thank our partners at IRS Criminal Investigation for ensuring justice was done in this case.”

“A guilty plea is a good first step in achieving justice for taxpayers,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation’s St. Louis Field Office. “CI is happy to work alongside our partners in the U.S. Attorney’s Office to track down fraudulent tax preparers and hold them accountable for taking advantage of unsuspecting taxpayers.”

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IRS Criminal Investigation is investigating the case.

Trial Attorney Dominick Giovanniello of the Tax Division and Assistant U.S. Attorney Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota are prosecuting the case.



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North Dakota

North Dakota leaders unveil enhanced oil recovery plan for Bakken

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North Dakota leaders unveil enhanced oil recovery plan for Bakken


BISMARCK, N.D. (KFYR) – North Dakota leaders unveiled an initiative aimed at getting more oil out of the Bakken, using enhanced oil recovery and CO₂.

Senator John Hoeven said the effort is getting a boost from $36 million from the Department of Energy for “Crack the Code 2.0,” a $157 million initiative with state and industry funding.

Hoeven said the goal is to use CO₂ for enhanced oil recovery, calling it “an important, usable, valuable commodity” and saying, “We’re linking our coal plants with our oil and gas producing companies to do it.”

Funding will be used to develop technology to make enhanced oil recovery profitable and viable, and then implement it in North Dakota oil fields in a number of pilot projects.

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Hoeven said current recovery rates in the Bakken are limited.

“We’re only producing about 10 to 12% of the oil out of that shale,” he said, “But with EOR, advanced oil recovery techniques, we can double it. We can take it from 10 to 12% up to 25% or better.”

Hoeven said the effort is also tied to electricity demand, saying North Dakota will “produce more electricity for a company that wants to do AI, that wants to do data centers, needs more and more electricity,” and that “it isn’t just about oil and gas.”

North Dakota Petroleum Council President Ron Ness said the pilot projects are expected to start soon.

“We hope to see these pilots putting their technologies into the ground sometime late this year, first quarter of next year,” said Ness.

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“So I would expect by this time next year, we’re going to maybe potentially begin to see what are some of the results early on,” Ness added. “And again, this is going to take multiple, multiple swings at this thing. It’s not going to just happen. If it was easy, we’d be doing it. Nobody’s done it anywhere in the world. This is where we’re going to crack the code.”

Copyright 2026 KFYR. All rights reserved.



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North Memorial and South Dakota-based Sanford Health merging

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North Memorial and South Dakota-based Sanford Health merging


Three years after a deal with Fairview was called off, South Dakota-based Sanford Health is getting into the Twin Cities market with a new merger.

On Friday, the health system announced that it will combine with North Memorial Health.

Fairview, Sanford call off planned merger

Under the merger, Sanford says the organization will invest $600 million to strengthen the Robbinsdale hospital and double the Maple Grove hospital’s size.

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Sanford is the largest rural nonprofit health system in the country, with 58 hospitals and roughly 56,000 employees across the Dakotas, Iowa, Wisconsin, Wyoming and the Upper Peninsula of Michigan. North Memorial operates two hospitals in Robbinsdale and Maple Grove, along with several other clinics, employing more than 6,500 people.

If completed, the health systems plan to keep some local leadership in place, including North Memorial CEO Trevor Sawallish, and two North Memorial board members will serve on the combined system’s board. However, the overall company will be led by Sanford CEO Bill Gassen.

The companies say they expect the merger to close later this year, as long as regulatory processes don’t cause delays.

Sanford’s previous attempt to merge with Fairview was called off in 2023, eight months after initially announcing the planned merger. Many Minnesotans raised concerns about that transaction, including Minnesota Attorney General Keith Ellison, although some of that was due to the University of Minnesota’s partnership with Fairview and the possibility of an out-of-state company running the state’s flagship medical school.

As with most mergers, concerns are still likely to arise about possible cutbacks and the impact on the state’s healthcare quality. However, the deal seems more likely to be completed than Sanford’s past attempts.

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Reaction

SEIU Healthcare Minnesota & Iowa, who represents over 1,000 workers at North Memorial, called the news “worrisome.”

“At a time when healthcare costs are skyrocketing for Minnesota families and frontline healthcare workers are getting squeezed by short staffing levels, this latest attempt at consolidation brings many concerns. It is especially concerning because previous merger attempts by Sanford Health to come into Minnesota have failed due to their values and corporate behavior,” the union said.

SEIU also called on Ellison “to use all of his office’s powers within the law to provide oversight into this proposed merger and ensure the interests of Minnesota’s workers and patients are protected.”

Ellison’s office is asking the public to submit information through an online Community Input Form.

“As we have done and are currently doing with other healthcare transactions, we are conducting a thorough review of this potential acquisition to ensure it complies with the law and is in the public interest,” Ellison daid. “Proposed health care consolidation requires careful examination. As long as I am Attorney General, I will use the full range of regulatory tools to protect Minnesotans’ access to quality, affordable healthcare.”

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The Minnesota Nurses Association released a statement saying it is “deeply concerned” by the merger announcement, warning it “could have far-reaching consequences for patients, healthcare workers, and the communities they serve.”

This is a breaking news story. Follow 5 EYEWITNESS NEWS on social media and on the KSTP app below for more updates.

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North Dakota scores third-highest average IQ nationally

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North Dakota scores third-highest average IQ nationally


BISMARCK, N.D. (KFYR) – Here’s something North Dakotans can take pride in: North Dakota has the third-highest average IQ in the nation, tying with Vermont at 103.8. That is 3.5 points above the national average.

The state with the highest average is Massachusetts at 104.3 and the state with the lowest average is Mississippi at 94.2.

Ninety-four percent of North Dakotans graduate high school, making it the state with the sixth-highest graduation rate in the nation.

Copyright 2026 KFYR. All rights reserved.

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