FARGO - A Dickinson-based contractor that operates in 10 states has been indicted on federal tax fraud and conspiracy charges. The company said it has done nothing wrong.

Fisher Sand and Gravel, company vice president Michael Fisher and chief financial officer Amiel Schaff are charged with 11 counts of conspiracy and tax fraud. They're accused of avoiding income tax payments between 2001 and 2004, U.S. Attorney Drew Wrigley said from his Fargo office on Wednesday.

Fisher pleaded not guilty to nine counts and Schaff pleaded not guilty to four counts Wednesday in Bismarck. They were released on personal recognizance bonds.

"We're disappointed the grand jury has chosen to issue indictments to the corporation and two of its officers," comptroller Clyde Frank said. "We intend to vigorously contest the matters alleged in the indictments and are confident the company and its officers will be exonerated."

Frank declined further comment.

The company's Web site says Fisher Sand and Gravel has annual sales topping $40 million, and that the company is in the top third in sales volume among the nation's producers.

Frank said the company operates in North Dakota, South Dakota, Montana, Wyoming, Arizona, New Mexico, California, Nevada, Colorado and Arkansas.

"It's obviously a significant corporate entity in North Dakota and it reaches well outside the state with its business dealings," Wrigley said.

The complaint accuses the defendants of making fraudulent entries on the company's corporate books, which allowed them to conceal payments to Fisher and his family members for construction expenses, credit card bills, vacations, and legal and medical expenses.

"Individuals should think twice before trying to incorporate their personal pocketbook to evade taxes," said Nathan Hochman, assistant attorney general for the U.S. Department of Justice tax division.

Prosecutors said the company wrote 11 checks of more than $10,000 each to construction and construction materials companies for Fisher's benefit. The largest check was $59,300.

A check for nearly $5,000 to a law firm was for a Fisher family member, the complaint said.

The company also claimed business expenses it did not incur and deductions on its income tax returns that it did not earn, prosecutors said.

Trial has been scheduled for July 22 in Bismarck.

"Those who evade taxes attempt to shift their obligations to the shoulders of law-abiding taxpayers," Wrigley said. "That's a burden that no honest taxpayer should be forced to take on, so we pursue these cases aggressively."