June 11, 2003

PRESS RELEASE

FORMER FRANKLIN BUSINESSMAN CHARGED WITH FAILURE
TO PAY EMPLOYMENT TAXES AND FAILURE TO FILE INDIVIDUAL RETURNS

Boston, MA... In an Indictment returned today in federal court, a former Franklin business owner was charged with failing to pay to the Internal Revenue Service more than $175,000 in federal income, social security and medicare taxes that he allegedly withheld from the paychecks of his employees during the years 1997 to 1999. He also was charged with failing to file individual income tax returns despite earning more than $500,000 in gross income over the same time period.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that MICHAEL SCHLEVENICK, age 51, formerly of 1 Franklin Springs Road in Franklin, Massachusetts and currently of Weston, Florida, was charged in a fourteen-count Indictment with failure to account for, and pay, withholding taxes and failure to file individual returns.

According to the Indictment, SCHLEVENICK owned a Franklin-based business named Coastal Marketing, Inc. ("Coastal"). SCHLEVENICK prepared and issued paychecks to Coastal's employees from which he deducted state and federal income taxes and social security and medicare taxes.

The Indictment charges that during the years 1997, 1998 and 1999, SCHLEVENICK withheld more than $175,000 in federal taxes from his employees' paychecks, yet failed to report or pay over those taxes to the IRS. The Indictment further charges that over the same time period, SCHLEVENICK received more than $500,000 in gross income, but did not timely report or pay taxes on any of it.

If convicted, SCHLEVENICK faces up to 5 years' imprisonment on each of the withholding tax counts and 1 year in prison on the misdemeanor failure to file tax return charges.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.

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