No new trial for Neways founders

The founders of Utah-based Neways Inc. failed Friday at an attempt to win a new trial and get their tax fraud convictions overturned.

Thomas E. Mower Sr. and Leslie DeeAnn Mower were convicted in March for cheating the Internal Revenue Service out of more than $1 million by failing to report millions of dollars in commissions they received from their company's overseas divisions.

The former husband and wife filed separate motions asking U.S. District Judge Dale Kimball to reverse their convictions and grant a new trial. In a ruling Friday, Kimball denied the motions, saying the Mowers "have not met their burden of demonstrating that evidence was so meager or nonexistent that a reasonable jury could not find in the government's favor."

In March, a federal jury found Thomas and Leslie Mower each guilty of one count of conspiracy to defraud the United States and six counts of tax evasion.

Former Neways corporate attorney James Thompson also was convicted of one count of conspiracy and one count of obstructing an IRS investigation.

During the trial, prosecutors told jurors the case was one of "deception, concealment and outright greed on the part of a husband, a wife and their attorney."

According to the government, Thomas and Leslie Mower failed to report $3.2 million of personal income collected on commissions from Neways' divisions in the United States, Australia and Malaysia, ultimately saving themselves a tax bill of $1.3 million.

The Mowers contended that the money was actually meant as loans from Neways Australia to Neways USA, and that they did not personally benefit from the funds. Thompson was accused of manufacturing a fake loan document to support the Mowers' claims.

A former managing director of Neways' Australian division told jurors that he was unaware of any loans to the U.S. corporation. Defense attorneys maintained that all of the money went back into the corporation, not into the Mowers' pockets.

Neways sells cosmetics, skin-care products, health supplements and other personal care items in the United States and at least 35 other countries.

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E-mail: ldethman@desnews.com