August 13, 2003

PRESS RELEASE

ACCOUNTANT CHARGED WITH FRAUD

Boston, MA... A Danvers man was charged today in federal court with fraud in connection with his failure to make federal and state tax payments on behalf of clients.

United States Attorney Michael J. Sullivan and Kevin J. McGlynn, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Division, announced today that MARK E. BAKER, age 44, of Danvers, Massachusetts, was charged in an indictment with three counts of mail fraud.

The indictment alleges that, commencing in approximately 1995, BAKER represented to clients that, if the clients made payments into his "Mark Baker Client Fund," he would be responsible for the periodic corporate tax filings and payments to relevant state and federal tax authorities on behalf of his clients' corporations. However, the indictment alleges that instead of making the payments to the relevant authorities, BAKER used the clients' funds for his own purposes. According to the indictment, BAKER's clients were unaware that their tax filings had not been made because, without their consent or knowledge, BAKER had used his own mailing address for the companies with the relevant authorities and therefore the clients did not receive notices of their delinquencies or the impending tax levies.

The indictment alleges that BAKER bilked one client of at least $17,000.

If convicted on these charges, BAKER faces up to 5 years' imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine.

The case was investigated by the Treasury Inspector General for Tax Administration, New York Field Division. It is being prosecuted by Assistant U.S. Attorney Lori J. Holik in Sullivan's Economic Crimes Unit.

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