Grand jury adds charges, defendant

A federal grand jury added charges and a new defendant this month to the case accusing a Utah couple with evading taxes on overseas sales of cosmetics and health supplements.

Thomas E. Mower Sr. and his former wife, Leslie DeeAnn Mower, owners of Neways Inc., were indicted last December for failing to report $3 million in commissions when they filed joint personal federal tax returns from 1992 to 1997.

They also were accused of trying to cover up the income when the Internal Revenue Service began to investigate.

The grand jury this month charged a new defendant, former Neways corporate attorney James Thompson of Chandler, Ariz., with conspiracy and obstructing an IRS investigation.

It also lodged a second conspiracy charge against the Mowers, saying all three tried to conceal an additional $1 million in Neways sales.

The Mowers originally were charged with six counts of tax evasion and one count of conspiracy.

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

The indictment asserts that Tom Mower twice caused fraudulent loan documents to be created and presented to the IRS to conceal commission income in Australia.

The Mowers are accused of falsifying corporate books and records and filing false corporate tax returns for Neways to conceal their commission income.

The Mowers allegedly deposited dozens of commission checks into bank accounts set up with their son's Social Security number in an attempt to hide the income.

Multilevel marketing companies market and sell products through people known as distributors who receive commissions from others in their "downline."

The Mowers has not been involved in the day-to-day management of Neways for more than a year, said Richard Evans, vice president of communications.