Eagle man sentenced for defrauding Garden City business, IRS
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Rachel Roberts and Sally Krutzig, Idaho Statesman
EAGLE (Idaho Statesman) — An Eagle man has been sentenced to 52 months in federal prison on embezzlement and tax fraud charges, according to the United States Attorney’s Office for the District of Idaho.
Miles J. Elletson, 55, pleaded guilty to wire fraud and filing false tax returns, defrauding Alloway Electric, a contracting company in Garden City, of $478,013 and shorting the IRS $161,354 in tax returns between 2017 and 2020, according to court records.
Elletson obtained money from the company by submitting fraudulent invoices claiming that Advanced Purchasing Services LLC had performed work for it.
He then signed checks for APS on behalf of Alloway for the fraudulent invoices, and instructed the registered owner of APS to deposit those checks and transfer the money to accounts owned by Elletson under the guise he used the specified accounts to buy the supplies APS sold to Alloway, according to court records and federal officials.
But the accounts were actually Elletson’s personal accounts and the charges on those accounts went toward his personal expenses, including purchases during a trip to Mexico, court records show.
Approximately 50 checks were written from APS’s account to Elletson, according to those records.
In addition to 52 months in prison, Senior U.S. District Judge B. Lynn Winmill ordered Elletson to serve two years of supervised release following his sentence. He must also pay $161,354 in restitution to the IRS.
Elletson pleaded guilty to the charges on June 11, 2025.
“The U.S. Attorney’s Office will continue to prosecute cases where individuals defraud and embezzle from businesses and taxpayers,” said U.S Attorney Bart M. Davis in an April 6 news release.
The IRS and Garden City Police Department helped bring forward the charges against Elletson.
“Elletson devised a scheme to abuse his position for personal gain and placed an unfair burden on honest taxpayers,” said Amanda Prestegard, Special Agent in Charge, IRS-CI Denver Field Office. “Financial crimes carry severe consequences, and this case is the latest example of what happens when someone thinks they are above the law.”