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Nightclub Owners Accused Of Tax Evasion Make First Court Appearance

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MINNEAPOLIS (WCCO) – The owners of the downtown nightclub Envy appeared in court Friday after each being charged with multiple tax evasion charges earlier this summer.

The Hennepin County Attorney’s Office said James Shelly Beamon, 39, and Susan Kerry Beamon, 45, each face 11 counts for allegedly filing false tax returns, failing to file sales tax returns and failing to remit sales taxes.

A criminal complaint filed in late July said Envy employees told the police last year that the Beamons were “skimming” off of the club’s cover charges and cash-only bars. The charges came after tax officials executed a search warrant in the club last summer.

The complaint concluded saying the Beamons under-reported their sales by about $240,000, thus avoiding more than $33,000 in sales tax liability.

The club had also come under scrutiny after being blamed for contributing to late-night crime in the area.

Mike Freeman, the county attorney, had strong words for the Beamons.

“The Beamons’ had the audacity to claim last year that their club was being targeted because the city didn’t like their clientele,” Freeman said. “No, they were targeted because they were a wealthy couple who were not paying their income taxes and their business used two sets of books so they could pay less in sales taxes and pocket the difference. It’s criminal behavior.”

The next hearing for James Beamon is slated for Oct. 14; the next one for Susan Beamon is set for Nov. 1.

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