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NEWAYS FOUNDERS SENTENCED

September 14, 2006

tomdee.jpgThe founders of the Utah-based multi-level marketing firm Neways received prison sentences yesterday on federal tax charges.

Tom Mower was sentenced to 33 months in prison. His former wife Leslie "Dee" Mower received a 27-month prison term. Both were also ordered to serve a 36-month "supervised release" and to pay fines.

The sentences are at the high end of the range normally indicated for the amount of taxes at issue. I haven't been able to access the judge's sentencing report; it's possible that the judge determined that the use of offshore businesses in the tax crime was a "sophisticated means" of tax evasion, calling for a longer sentence.

The judge rejected the Mower's arguments for leniency based on Mr. Mower's charitable giving and Ms. Mower's family responsibilities.

The Mowers will also have to cooperate with the IRS in determining and collecting their back taxes.

Links:

Deseret News

Daily Herald

Salt Lake Tribune

Tax Update Coverage:

WHAT'S UP WITH THE MOWERS?

N-E-WAYS OUT OF PRISON FOR THESE MULTI-LEVEL MARKETING MAGNATES?

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