United States of America v. Kenneth E. Orrock

Rapid City, SD - Rapid City Man Sentenced for Failing to Pay Taxes



A Rapid City, South Dakota, man convicted of Willful Failure to Collect and Pay Over Tax was sentenced on August 30, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court. The Defendant was charged on January 30, 2017, and pleaded guilty on February 12, 2017.



During the years 2011 through 2015, Orrock was the sole member of Black Hills Asset Protection Group, LLC, a limited liability company located in Rapid City that offers security-related services in western South Dakota under the trade name “Black Hills Patrol.”



During the same period, Orrock withheld taxes from his employees’ wages, including federal income tax, social security, and Medicare taxes for employees of Black Hills Patrol, and willfully failed to pay over those taxes to the United States. Orrock also willfully failed to pay the employer’s portion of taxes on wages paid to employees during the same period. Rather than paying over the taxes, Orrock used a portion of the withholdings for his own personal use.



Orrock, who was a licensed attorney until recently, served as the Bennett County State’s Attorney until January 2017.



This case was investigated by the Internal Revenue Service Criminal Investigation Division.

Kenneth E. Orrock, age 48, was sentenced to 12 months of imprisonment, ordered to be served on weekends, followed by 3 years of supervised release. He was further ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $280,257.72 in restitution to the Internal Revenue Service.