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OWNERS OF AIRCRAFT COMPONENT MANUFACTURER INDICTED

WASHINGTON, D.C. - A federal grand jury in San Diego has charged the owners of a firm that manufactures aircraft fuselage insulation blankets for companies such as Boeing and McDonald Douglas, with three counts of tax evasion totaling approximately $1.8 million and four counts of filing false income tax returns.

The indictment alleges that Michael R. Molus and Carol A. Molus, of Newport Coast, California, the owners of the Mexmil Company, fraudulently overstated the firm's manufacturing costs from 1991 to 1994. The indictment states that the Molus' used a portion of this money for personal expenses, including the purchase of a luxury vacation home in Boca Grande, Florida, decorating expenses for this Florida home and Neiman Marcus bills.

The federal grand jury also returned a multi-count indictment charging the Molus', as well as Mark S. Molus, Michael Richard Molus III (a.k.a. Rick Molus), Matthew K. Molus, Enrique Gomez Avila, Jason C. McCann and Dwayne L. Ellison for conspiracy to defraud the United States by hampering the Internal Revenue Service (IRS) in the correct computation and assessment of federal individual income taxes. The indictment further alleges that the fraudulent income was distributed to the these defendants, all of whom worked for Mexmil, but who failed to report this income to the IRS.

According to the indictment, Mark S. Molus, Matthew K. Molus, and Michael Richard Molus III, a.k.a. Rick Molus, are the sons of Michael R. Molus. Mark S. Molus now resides in San Clemente, California and Matthew K. Molus in Mission Viejo, California. Rick Molus currently resides in San Juan Capistrano, California and Jason C. McCann, a.k.a. Jason Molus, the nephew of Michael R. Molus, resides in Temecula, California. Dwayne L. Ellison is a resident of Laguna Niguel, California.

Mexmil, which is based in Santa Ana, California, was formed in approximately 1978. The company has its manufacturing facility in Mexicali, Mexico.

If found guilty, the defendants could be sentenced to five years imprisonment and a $250,000 fine on each count for tax evasion, and a three year prison term and $250,000 fine for each count of filing a false tax return. For conspiracy to defraud the United States by impeding and impairing the IRS in the correct computation and assessment of federal individual income taxes, defendants could be sentenced to five years in prison and a $250,000 fine.

This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. It is being prosecuted by the Department of Justice, Tax Division, Western Criminal Enforcement Section.

An indictment is not evidence that the defendants committed the crimes charged. They, like all defendants, are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.

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