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Gun Show Company Funds Seized by Iowa Judge

IOWA CITY, Iowa (AP) – A judge has approved the seizure of more than $90,000 from an Iowa gun show company’s bank accounts that investigators say was deposited in a way to avoid scrutiny.

U.S. Magistrate Judge Jon Scoles found probable cause Monday to support the seizure from Manchester, Iowa-based R.K. Gun Shows,Inc. and related companies by the Internal Revenue Service.

R.K. Gun Shows, Inc. holds gun shows throughout the Midwest, including in St Joseph.

Investigators seized the money after they say company owners deposited more than $1 million in accounts in increments below $10,000 in recent years. IRS agents say such transactions avoid rules requiring banks to disclose deposits and withdrawals greater than $10,000 to investigators.

The owners, Joyce and Rex Kehrli, have filed a complaint seeking the money back, arguing they did nothing wrong and didn’t know about the rules.

 

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