Neways founders' criminal convictions upheld

[Demosthenes]

Appellate court upholds Neways founders' tax evasion, fraud convictions
By Pamela Manson
The Salt Lake Tribune
Article Last Updated: 03/12/2008 01:16:53 PM MDT


Posted: 11:21 AM- The 10th U.S. Circuit Court of Appeals today upheld the tax evasion and tax fraud convictions of the founders of Neways Inc., a Springville multilevel marketing company, and its former corporate counsel.
The Denver-based court rejected the appeals of the three - Thomas E. Mower; his ex-wife, Leslie DeeAnn Mower; and James Louis Thompson, a now-disbarred Orem attorney - who claimed they were convicted by a jury on insufficient evidence.
At a 2005 trial, federal prosecutors alleged that the three concealed more than $1 million in receipts received from Neways Australia and more than $3 million in commission income the Mowers received from U.S., Australian and Malaysian distributorships.
Neways manufactures, markets and sells personal care and nutritional products in the United States and about two dozen foreign countries.
The jury convicted each of the Mowers of one count of conspiracy to defraud the United States and six counts of tax evasion. Thompson was convicted of one count each of conspiracy and of corruptly impeding the due administration of tax laws.
Thomas Mower was sentenced to 33 months in prison, while his former wife was ordered to spend 27 months behind bars. The two also were ordered to pay back taxes.
Thompson, who served as counsel for Neways from 1995 to 1997, was sentenced to a year and a day in prison.
The Mowers sold Neways in 2006 to Golden Gate Capital, a Francisco-based company that had invested heavily in Herbalife.