Neways forges on despite founders' indictment

SALEM, Utah County — Brass at Neways International rolled up their sleeves Friday for some much-needed damage control after learning the company's founders faced a federal grand jury tax evasion indictment.

Company leaders issued cautious statements to the press, soothed relations with employees and met with a construction company working on the firm's new $12 million headquarters.

The indictments of the company's founders aren't expected to affect the construction project, said Rick Evans, a company spokesman.

Construction of the building has generated a bit of controversy.

At first, Neways planned to build the 85,000-square-foot building in Salem, a tiny Utah County city.

But the company uprooted to Springville when Salem leaders said they wouldn't allow the company to place a towering logo atop the building. It violated height requirements of Salem's sign ordinance.

Completion is expected in late winter. The first and fifth floors will are scheduled to open Jan. 15, said Brian Bird of C&W Construction, which won the project bid. The news didn't halt work, Bird said.

"We have no problem with continuing," he said.

Layne Long, Springville's city manager, said the city anticipates the building will be completed, regardless of the legal woes.

Company chiefs told the firm's 400 employees about the indictments — but made no contact with distributors around the world, said Rick Evans, a company spokesman.

Neways was not named in the indictment, Evans said.

The company was founded in 1987.

Neways is a multilevel marketing company that sells its products through networks of distributors. Neways sells personal care items, food supplements and skin-care products.

Founders Thomas E. Mower Sr. and his former wife, DeeAnn Mower, are charged with personal tax evasion on more than $3 million in commissions. They are accused of failing to report personal income from international sales from 1992 to 1997.

They also were accused of trying to cover up the income when the Internal Revenue Service began looking into their case.

The couple pleaded not guilty on Friday. (see accompanying story)

Last April, the company board of directors installed a new management team, replacing Tom Mower Sr., who was chief executive officer, with Michael Cunningham.

"The Mowers were members of the board and were part of that decision," Evans said.

The Mowers no longer have day-to-day control. Instead they travel around the world promoting the business in 23 countries, including the United States "which is what they chose to do," Evans said. Tom Mower Sr. was unavailable for comment.

Neways has annual sales of $400 million, according to its Web site.

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E-mail: rodger@desnews.com