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.

View Comments

In November 2006, Neways was acquired by San Francisco-based private equity firm Golden Gate Capital.

Join the Conversation
Looking for comments?
Find comments in their new home! Click the buttons at the top or within the article to view them — or use the button below for quick access.