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FOR IMMEDIATE RELEASE - Friday, July 12, 2002 contact

                                      

NEWARK WOMAN PLEADS TO MULTIPLE TAX VIOLATIONS

(Wilmington, DE) – William M. Remington, Director of Revenue announced today that a Newark woman pleaded guilty in Superior Court to numerous income tax violations.

Ms. Carolyn Cave, 41, pleaded guilty to one felony count each for attempting to evade state income tax and for failing to collect or pay over employer withholding taxes. She also pleaded guilty to one misdemeanor count of failing to file State of Delaware unemployment tax returns.

An investigation conducted by the Delaware Division of Revenue’s Criminal Investigation Unit revealed that Cave, part-owner of a commercial janitorial service in Bear, DE failed to uphold her responsibility for filing tax returns on behalf of her business, New Life Services, Inc. She also used company funds for personal means without reporting the amounts as income on her state tax returns.

During the years 1996 through 1999, as president, she wrote herself checks from the company payroll account totaling more than $63,000 of which not one dollar was reported as taxable income on her State tax returns. Cave also owed the Delaware Division of Revenue more than $31,000 for unpaid employer withholding taxes for her business.

Finally, Cave failed to file unemployment tax returns with the Delaware Department of Labor in the year 2000 amounting to a tax deficiency of greater than $10,000.

Cave awaits sentencing on August 29, 2002 in NCC Superior Court.