April 15, 2003

Florence Accountant Arrested on Federal Tax Charges

Memphis, TN - Terrell L. Harris, United States Attorney for the Western District of Tennessee and Sherree W. Preston, Special Agent in Charge IRS Criminal Investigation Nashville Field Office, announced today the arrest of Steve L. Newell of Florence, Alabama.

Newell owns and operates a bookkeeping and tax service, Newell & Associates in Florence, Alabama. On October 2, 2001, Newell pled guilty in the Western District of Tennessee to a criminal charge of submitting false and fraudulent documents to the Internal Revenue Service.

On December 18, 2001, United States District Court Judge James Todd sentenced Newell to five months prison time followed by five months home detention. The Court prohibited Newell from doing any tax work for a period of one year.

Beginning in January 2002, Newell filed a series of request to delay his reporting to prison for various health reasons.

In May 2002, Newell claimed to be suffering from cancer. The District Court continued the date to surrender to the U.S. Bureau of Prisons and added a condition to the defendant's bond that he could not perform any tax work prior to reporting to prison.

From September 2002 through April 2003, Newell filed medical records with the Court showing Newell was being treated for terminal cancer. However, subsequent investigation revealed the medical records were forged. Moreover, a motion to revoke the bond stated that the investigation revealed Newell had been performing tax work in violation of his bond conditions.

Based upon this information, the District Court issued a warrant for Newell's arrest.

Newell was arrested at his place of business on April 14, 2003. Mr. Newell currently has a bond revocation hearing scheduled for Friday, April 18, 2003, at 1:30 p.m. before the United States District Court in Jackson, Tennessee. He is currently being held without bond by the United States Marshal's Service.

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