Pet chip clinic nixed; couple faces charges

The pet microchip and vaccine clinic in Cloquet for Carlton County residents, scheduled for Saturday, Sept. 23, was canceled last week after the partnering humane society founder was charged with fraud. Northern Lakes Rescue has partnered with the city and county in recent years to operate the microchip clinics. Carlton County coordinator Dennis Genereau said the city and county discovered the charges and plan to reschedule the clinic with another agency in the future.

According to a news release from the Minnesota Department of Revenue, the complaints allege that Shannon Marie Steele and Russel Clair Steele, both of Pequot Lakes, filed fraudulent income tax returns for tax years 2017 through 2021 and failed to pay the correct amount of income tax in those years. The couple was charged in Crow Wing County with five felony counts of filing false or fraudulent income tax returns and five felony counts of failing to pay income tax.

The complaints state that Shannon Steele founded Northern Lakes Rescue, a dog rescue nonprofit organization, where she was the only one with access to the organization’s bank accounts and records. The complaints allege that Steele withdrew thousands of dollars from bank accounts associated with the nonprofit to use for personal expenses such as appliances, video games, airfare, groceries, and jet ski rentals. According to the complaints, the Steeles failed to include these withdrawals as income on their tax returns and avoided paying tax on more than $303,000 in taxable income.

On Monday, the board of directors of Northern Lakes Rescue announced they had accepted the resignation of Shannon Steele from the board and her position as president.

“Out of an abundance of caution, the board thereafter voted to place Shannon Steele on administrative leave effective immediately,” the letter said. “Shannon will be paid through the end of the current pay period (Sept. 30) with the understanding that she will work with the rescue to transfer any rescue information and accounts during that time.”

The group said it will not immediately fill Steele’s position.

“Northern Lakes Rescue wants to reassure the public that it is not aware of any financial mismanagement; however, through these actions, the organization hopes to demonstrate to the community that it takes its rescue obligations seriously and that the dogs always come first.”

If the Steeles are found guilty, each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.

The couple is scheduled to make a first appearance on the tax fraud crimes Oct. 4 in Crow Wing County District Court.

The Minnesota Department of Revenue has a 24-hour tipline for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at [email protected]. Tipsters may choose to remain

anonymous.