May 1, 2003

Indictment Returned in Money Laundering Case of Former Employee of
Church of God in Christ (COGIC)

Memphis, TN - Terrell L. Harris, United States Attorney for the Western District of Tennessee, announced that a federal grand jury returned a 58-count indictment charging MARLES FLOWERS on Thursday, May 1, 2003 with mail fraud and money laundering. According to the indictment, Flowers falsely and fraudulently represented to Dobbs Fleet Leasing (DFL) that he had authority to enter into a master lease agreement on behalf of the Church of God in Christ (COGIC). Flowers provided false and fraudulent Certificates of Sales Tax Exemption issued by the State of Tennessee which caused DFL to falsely report to the State of Tennessee via the Postal Service that all vehicle leases pursuant to the COGIC Master Lease were exempt from Tennessee sales tax. The indictment alleges that from June 1998 until March 2001, the defendant MARLES FLOWERS obtained vehicles from DFL which were not subject to sales tax and which were registered in the name of COGIC at his home address. The defendant MARLES FLOWERS in turn allegedly leased said vehicles to individuals for his personal gain. According to the indictment, Flowers is charged with money laundering in that he knowingly conducted financial transactions (accepted United States currency) which included drug proceeds as down payments and monthly lease payments, knowing that the transaction was designed in whole or in part to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of said specified unlawful activity.

If convicted, Flowers faces a maximum sentence of Twenty (20) years imprisonment and a $500,000 fine or both for each count in the indictment.

This case is being investigated by Investigators Cheryl Hays and David McGriff with the Criminal Investigative Division of the Shelby County District Attorney General's Office; Special Agent John Rankin with IRS Criminal Investigations; Special Agent Bill Ricci and Russell Gregory with the Federal Bureau of Investigation and Jennifer Robinson with Vice/Narcotics Unit of the Memphis Police Department. Assistant United States Attorney Thomas Parker is handling the case for the government.

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