October 5, 2004

PRESS RELEASE

BROOKLINE MAN PLEADS GUILTY TO EVADING $197,000 IN INCOME TAXES

Boston, MA... A Brookline man pleaded guilty in federal court to on Friday, October 1, 2004, to corruptly endeavoring to obstruct and impede the due Administration of the Internal Revenue Service and to using a false Social Security number.

United States Attorney Michael J. Sullivan; Joseph A. Galasso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in New England; and Kevin J. McGlynn, Special Agent in Charge of Treasury Inspector General for Tax Administration, announced that STEVEN NOTHMANN, age 58, of Brookline, pleaded guilty before U.S. District Judge Patti B. Saris to an Information charging him with one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Service and one count of using a false Social Security.

At the plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that over the course of several years, NOTHMANN engaged in a course of conduct intended to avoid payment of taxes by hiding assets in the name of family members, using another’s Social Security number instead of his own on W-4 forms and tax returns, and claiming large numbers of deductions on his W-4 forms. At the plea hearing, NOTHMANN also admitted that he lied to IRS Special Agents in order to avoid paying taxes. NOTHMAN pleaded guilty to evading $197,000 in income taxes.

Judge Saris scheduled sentencing for January 14, 2005 at 2:00 p.m. NOTHMANN 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 Internal Revenue Service, Criminal Investigation and the Department of Treasury, Inspector General for Tax Administration. It is being prosecuted by Assistant U.S. Attorney Seth P. Berman in Sullivan’s Economic Crimes Unit.

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