June 14, 2004

PRESS RELEASE
FORMER FRANKLIN BUSINESSMAN SENTENCED FOR TAX OFFENSES

Boston, MA... A former Franklin business owner was sentenced in federal court today in connection with tax offenses involving his failure to account for and pay over to the Internal Revenue Service more than $175,000 in federal income, social security and medicare taxes that he withheld from the paychecks of his employees during the years 1997 to 1999. He was also sentenced for having failed 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, was sentenced by U.S. District Judge Douglas P. Woodlock to 1 year and 3 months in prison, to be followed by 2 years of supervised release.

SCHLEVENICK pleaded guilty on March 10, 2004 to a fourteen-count Indictment charging him with failure to account for, and pay, withholding taxes, and failure to file individual returns.

At the earlier plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that 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. During the years 1997, 1998 and 1999, SCHLEVENICK withheld more than $175,000 in federal taxes from his employees' paychecks, yet willfully failed to report or pay over those taxes to the IRS.

As stated at the plea hearing, the evidence further would have shown that over the same time period, SCHLEVENICK personally received more than $500,000 in gross income, but did not timely report or pay taxes on any of it.

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

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