FLORIDA CHIROPRACTOR INDICTED FOR TAX EVASION

WASHINGTON, D.C. -- A federal grand jury indicted a Florida chiropractor today for tax evasion and filing false tax returns, announced Eileen J. O’Connor, Assistant Attorney General for the Department’s Tax Division and John Fowler, Special Agent-In-Charge of the Internal Revenue Service’s, Criminal Investigation.

The indictment alleges that Lois M. Somerville of Orlando, Florida, evaded the payment of a substantial amount of federal income taxes, penalties and interest. Specifically, the indictment charges that Somerville concealed her personal assets, business assets, and residence from the Internal Revenue Service by placing the assets in the name of several trusts and assigning her income from her chiropractor business to the same trusts.

The indictment also alleges that Somerville substantially under-reported her income on her 1996, 1997, 1998 and 1999 individual federal income tax returns.

If convicted, Somerville faces a maximum penalty of five years imprisonment for tax evasion and three years imprisonment for each false tax return. In addition, Somerville faces a maximum fine of $1.25 million.

Indictments are not evidence of guilt, and all defendants are presumed innocent until and unless proven guilty.

This criminal investigation was conducted by the Internal Revenue Service, Criminal Investigation, United States Department of Treasury. The prosecution is being handled by Trial Attorneys Glen A. Makl and Jeff A. Neiman of the United States Department of Justice, Tax Division, Southern Criminal Enforcement Section, Washington, D.C.

###

03-495