October 8, 2003

United States Attorney Mike Heavican and the Criminal Investigation Division of the Internal Revenue Service, announce the following information for the attention of the media:

Event Triggering this Release: On Monday, October 6, a jury found Eugene McNeally guilty of five counts of willfully failing to file tax returns for the 1995 through 1999 calendar years and eleven counts of making a false statement in relation to a matter within the jurisdiction of the Internal Revenue Service. During the course of the five day trial, the United States called over 60 witnesses to establish that McNeally, a self-employed roofer and construction contractor, earned sufficient income to require the filing of a federal income tax return for the calendar years 1995 through 1999. The jury also heard evidence that from 1997 through 2000, McNeally submitted to contractors false documents claiming to be a non-resident alien in an effort to stop the contractors and other entities from filing with the IRS documents, such as a Form 1099, showing the amount of money paid by the contractor to McNeally. The jury found that McNeally knew the documents to be false when he submitted them to the various contractors and entities.

"Our tax system is based on each citizen's responsibility to comply with the nation's tax laws and file accurate and timely tax returns," said Michael Yasofsky, Jr., Acting Special Agent in Charge of IRS-Criminal Investigation. "People who intentionally fail to file federal tax returns are subject to prosecution and must face the appropriate criminal penalties."

Name of Defendant: Eugene A. McNeally

AKA: Eugene Egen Jr.

DOB: November 13, 1951

Last Known Non-Custodial Address of Defendant: 4705 Lowell Ave. Lincoln, NE

Crime(s) Charged and Potential Penalty (A CHARGE is merely an accusation and every defendant is presumed innocent until and unless proven guilty): Counts 1-5, willful failure to file, 1 year in prison, a $100,000 fine or both, up to 1 year of supervised release, and a $25 special assessment per count. Counts 6-16, false statement, up to 5 years imprisonment, a $250,000 fine, up to 3 years of supervised release, and a $100 special assessment.

Specific Location of Alleged Crime: Lincoln, NE

Location of Arrest:

Alleged Dollar Loss/Type and Quantity of Drug:

Others Charged in Same Scheme:

Relevant Dates:

Date of Alleged Crime: Count I- April 15, 1996

Count II- April 15, 1997

Count III- April 15, 1998

Count IV- April 15, 1999

Count V- April 15, 2000

Count VI- June 26, 1997

Count VII- November 20, 1998

Count VIII- January 20, 1999

Count IX- January 29, 1999

Count X- January 31, 1999

Count XI- February 5, 1999

Count XII- March 19, 1999

Count XIII- May 13, 1999

Count XIV- May 13, 1999

Count XV- August 9, 1999

Count XVI- January 30, 2000

Federal Arrest Date:

Date Complaint Issued:

Indictment Returned Date: March 20, 2002

Initial Appearance Date: April 4, 2002

Plea or Trial and Date(s): September 29, 2003 through October 6, 2003

Sentencing Date: January 9, 2004

Next Court Hearing Type and Date:

Assigned Magistrate Judge:

Held without Bond, or Released from Custody: Released on conditions

In Continuous Custody Since:

Assigned District Court Judge: Senior District Court Judge Lyle E. Strom

Initials of Assigned AUSA/Preparer of THIS Release: SAR