Last Wednesday, a federal appeals court upheld the tax-fraud convictions of the founders of the Utah County-based Neways cosmetics and health-supplement company.
In its 75-page decision, the 10th Circuit upheld the convictions of Thomas Mower; his former wife, Leslie; and their former corporate attorney, James Thompson.
After a jury found the Mowers guilty in 2005, Leslie Mower was sentenced to 27 months in prison for failing to pay $89,112 in taxes over a six-year period. Thomas Mower was sentenced to nearly three years for failing to pay $199,775 in taxes.
Federal prosecutors initially charged the Mowers with failing to pay the Internal Revenue Service more than $1 million in taxes for failing to report that they had cashed more than $3 million in overseas commission checks. U.S. District Judge Dale Kimball later reduced their tax liability amount before sentencing.
In November 2006, Neways was acquired by San Francisco-based private equity firm Golden Gate Capital.