Richfield business owners with ties to the anti-government Montana Freemen appeared in federal court — without attorneys — on charges involving the alleged use of worthless checks to pay tax debts.
Former dentist Leonard Shyrl Brown and his son and daughter-in-law, Kevin Leonard Brown and Jodilyn Brown, were charged earlier this month with 11 counts, ranging from conspiracy to defraud the government to mail fraud.
U.S. District Magistrate Judge Ronald N. Boyce advised the Browns on Thursday to accept court-appointed legal representation. They agreed.
Federal prosecutors say the Browns had significant income and federal employment tax liability and that in 1995 they presented worthless checks in an attempt to pay off the debt and obtain additional money as refunds from the government.
According to the indictment, Brown and his son traveled to Montana where they met Leroy Schweitzer, a leader of the Montana Freemen.
Last year, a district court judge in Montana ordered Schweitzer to serve 22 years in prison for conspiring against the U.S. banking system by issuing thousands of bogus checks totaling billions of dollars, according to an Associated Press report.
Two of the worthless checks—one for $2,979,546.92 and the other for $72,921.18 — were presented to the Internal Revenue Service in Salt Lake City. The indictment also alleges checks were given to the U.S. attorney in Utah, the Utah State Tax Commission, Zions Bank, Mountain America Credit Union and GMAC.
The elder Brown told the Deseret News Thursday that he hasn't seen Schweitzer since the meeting in Montana.
"I really don't understand the indictment," he said. "I believed what I had were legitimate checks."
Brown filed a document asking for the court to dismiss the charges, saying he and his family "did tender payment in good faith."
"Defendants cannot be held liable where they have not signed the checks," the memorandum said. "Leroy Schweitzer is the 'maker' and 'signer' of the instrument and responsible for it under the law."
Brown also disputes the government's claims of tax liability.
Boyce said the case has now been assigned to U.S. District Judge Dee Benson.
E-MAIL: mtitze@desnews.com