Barry Jewell's Road to Indictment

by Mark Friedman  on Monday, Mar. 31, 2008 12:00 am  

When the indictment didn't come, the IRS told Jewell that he was being investigated as a "tax promoter." In some cases, a tax promoter moves his clients' money offshore to evade U.S. income taxes.

In May 2005, Moser pleaded guilty. At his sentencing, U.S. District Court Judge Susan Weber Wright gave Moser one more chance to reveal the location of his assets, which could be used to repay his victims. She said Moser could use his experience as a tax attorney to hide his money. If he told the truth, Wright said, she would consider reducing his sentence.

"There's no money anywhere that hasn't been accounted for," Moser said. "The government knows good and well that I'm telling the truth about it."

The government said it found some more money in June 2006.

On June 12, 2006, the government seized nearly $160,000 from three of Jewell's pension trust accounts based on statements by IRS Agent Elliott. Elliott said the money was traceable to Moser's crimes and alleged Jewell committed crimes as well.

"Despite the fact that Jewell and Moser had embezzled over $1 million from the client trust account, they continued to pay themselves high salaries and incurred lavish expenses until the firm dissolved in 2002," Elliott said. "Records and information from Moser and other witnesses support the position that Jewell had knowledge of and took an active role in the embezzlement."

Elliott said Jewell used several bank accounts and shell corporations to hide his income.

Jewell said the money was not tied to Moser's crimes and should be returned.

As the forfeiture case moved toward a court date in U.S. District Court, Assistant U.S. Attorney Dan Stripling told Jewell's attorney Roger Rowe that the case should be put on hold, the documents reveal. Stripling told Rowe that the other U.S. attorneys in the Little Rock office had figured out a way to tie Jewell to Moser's theft.

The Indictment

On April 4, 2007, Jewell was indicted and accused of several crimes starting in September 1996 and continuing through July 2005.

The charges include three counts of money laundering, one count of income tax evasion and a count of conspiracy to defraud the government.



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