July 1, 2002

PRESS RELEASE

RESIDENT OF MASHPEE CONVICTED OF ILLEGALLY SHELTERING OVER
$1 MILLION OF INCOME IN THE TURKS AND CAICOS ISLANDS

Boston, MA... A Mashpee man was convicted late Friday, June 28, 2002, by a trial jury on various tax fraud charges.

United States Attorney Michael J. Sullivan, Eileen J. O'Connor, Assistant Attorney General of the Department of Justice's Tax Division, and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that JOHN MIKUTOWICZ, age 51, a resident of Mashpee, Massachusetts was convicted today by a jury sitting before U.S. District Judge Rya Zobel of conspiracy to defraud the United States, 5 counts of filing false Corporate U.S. Income Tax Returns, and 4 counts of Tax Evasion for the years 1995 through 1998 on his Individual U.S. Income Tax Returns.

At trial, the Government's evidence proved that from 1994 through 1999 MIKUTOWICZ, the owner of AGM Marine ("AGM"), located in Mashpee, Massachusetts, aided by Tower Executive Resources ("Tower"), of Colorado, used shell corporations to divert over $1.3 million of AGM's earnings for 1994 through 1999 to a secret account in the Turks and Caicos Islands. From that account, MIKUTOWICZ then moved the money to yet another private account in the Cayman Islands. During the trial, excerpts of a recording were played in which Tower operators instructed their members on how to make their income "go away." Membership with Tower cost $50,000.

The jury also convicted MIKUTOWICZ of evading taxation on $100,000 of capital gains on the sale of commercial real estate MIKUTOWICZ owned in Sandwich, Massachusetts. MIKUTOWICZ caused PATRA, one of the shell corporations created by Tower, to backdate an option agreement on the Sandwich property which MIKUTOWICZ claimed to have "bought back" with $100,000 of the proceeds from the sale of the Sandwich property, thereby reducing his taxable gain on the sale of the real estate by $100,000. This $100,000 was also diverted to the secret Turks and Caicos account.

"Tax evasion is a serious crime, and the Tax Division of the Department of Justice is determined to successfully prosecute those who engage in it," said Assistant Attorney General O'Connor. "By today's verdict, this jury has shown it supports our efforts to assure people who pay taxes that those who don't, won't get away with it."

Judge Zobel scheduled sentencing for September 17, 2002. MIKUTOWICZ faces a potential penalty of 5 years' imprisonment and/or a $250,000 fine on each of the conspiracy and/or evasion counts, and 3 years' imprisonment and/or a $250,000 fine on each of the false return charges.

The case was investigated by Special Agents of the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Corey J. Smith and Robert P. Boyer Trial Attorneys with the Department of Justice Tax Division, Northern Criminal Enforcement Section.

Press Contact: Samantha Martin, (617) 748-3139