May 2, 2003

PRESS RELEASE

NORTH READING MAN PLEADS GUILTY TO TAX FRAUD

Boston, MA... A North Reading man pleaded guilty today in federal court to filing false income tax returns that omitted substantial amounts of income earned by his carpet company, American Carpet Company.

United States Attorney Michael J. Sullivan; Assistant Attorney General Eileen J. O'Connor of the Department of Justice's Tax Division; and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that STEVEN LABO, age 47, of North Reading, Massachusetts, pleaded guilty before Chief U.S. District Judge William G. Young to a two-count indictment charging him with signing false income tax returns.
At today's plea hearing, the prosecutor told the Court that had the case proceeded to trial, the evidence would have proven that during tax years 1993 and 1994, LABO provided figures to his accountant purporting to be the true business receipts of American Carpet Company that in fact substantially understated the actual gross receipts of the business.

Judge Young set sentencing for June 10, 2003. LABO faces a maximum sentence of 3 years in prison, to be followed by 1 year of supervised release, and a maximum fine of $250,000.

The case was investigated by Special Agents of the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Scott Lawson, Trial Attorney assigned to the Department of Justice's Tax Division.

Press Contact: Samantha Martin, (617) 748-3139