March 1, 2004

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: Eugene McNeally was sentenced by the Honorable Lyle E. Strom, Senior United States District Court Judge, to a term of imprisonment of 12 months and 1 day for his conviction for filing false documents in a matter within the jurisdiction of the Internal Revenue Service. McNeally was also sentenced to a term of 10 months in prison for filing false federal income tax returns for the years 1995 through 1999. In addition to the term of imprisonment, McNeally was sentenced to a three year term of supervised release on the false statement charges following his period of incarceration. McNeally was also ordered to pay $19,465 in restitution to the Internal Revenue Service and a special assessment of $1,225. "Citizen's who are required to file federal tax returns have a responsibility to file them accurately and timely," said Al Patton, Special Agent in Charge of IRS Criminal Investigation. "In fairness to those that comply, the IRS must and will actively pursue those who intentionally violate the tax laws by attempting to evade their true tax liabilities." A jury convicted McNeally of 11 counts of submitting false documents within the jurisdiction of the Internal Revenue Service and 5 counts of failing to file federal income tax returns.

Name of Defendant: Eugene A. McNeally

AKA:

DOB: November 13, 1951

Last Known Non-Custodial Address of Defendant: 4705 Lowell Avenue, 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: Wilful failure to file return - 1 year imprisonment, $100,000, 1 year term of supervised release, $25 special assessment for each count; Counts 6-16: False statement - 5 years imprisonment, $250,000 fine, 3 years term of supervised release, $100 special assessment for each count.

Specific Location of Alleged Crime: Lincoln, NE

Location of Arrest: N/A

Alleged Dollar Loss/Type and Quantity of Drug:

Others Charged in Same Scheme:

Relevant Dates:

Date of Alleged Crime: 1995 through 2000

Federal Arrest Date: N/A

Date Complaint Issued:

Indictment Returned Date: March 20, 2002

Initial Appearance Date: April 4, 2002

Plea or Trial and Date(s): Trial - September 29, 2003

Sentencing Date: February 27, 2004

Next Court Hearing Type and Date:

Assigned Magistrate Judge: David L. Piester

Held without Bond, or Released from Custody: released

In Continuous Custody Since:

Assigned District Court Judge: Lyle E. Strom

Initials of Assigned AUSA/Preparer of THIS Release: SAR