P.O.C.:
Donald A. Davis
Assistant United States Attorney
(616) 456-2404
Mark Kroczynski IRS CI (313) 628-3725

FOR IMMEDIATE RELEASE

Date: June 20, 2002

Grand Rapids, Michigan - Margaret M. Chiara, United States Attorney for the Western District of Michigan and Mark Kroczynski, Special Agent in Charge, Internal Revenue Service Criminal Investigation, announced that 44-year old, Gregory Bruce Zolman, plead guilty today to one count of willfully failing to file a federal tax return for the year of 1997. This was following his arrest on April 23, 2002, without incident at his home located at 8564 Maple City Highway, Lake Ann, Michigan. The Grand Jury returned a four count indictment of willfully failing to file a 1995, 1996, 1997, and 1998 federal tax return.

The Grand Jury charged that between 1995 and 1998, Zolman was a licensed builder, doing business in the Northwestern Lower Michigan area using the name, "Glen Lake Construction", and had a gross income of approximately $598,000 ($172,000 earned during the year of 1997) but, that he has not filed a federal income tax return as required by law since 1992.

The Grand Jury indictment also stated that prior to and during this time period, Zolman used the following additional means to impair, impede, obstruct and defeat the lawful functions of the Internal Revenue Service: Zolman filed with the Register of Deeds in Leelanau County, various documents in which he declared, "I am not a citizen of the United States"; he also informed the Internal Revenue Service and its agents that he had no taxable income and that his income was "exempt". Once instructed that this was an invalid claim, Zolman attempted, through letters and court actions, to thwart the investigation by alleging misconduct by the investigation agents. While collecting a debt of approximately $287,000, Zolman insisted that each payment not exceed $10,000 in an attempt to avoid what he believed to be bank reporting requirements.

Willfully failing to file a tax return is in violation of Title 26, United States Code, Section 7203. Each Count of conviction carries a maximum penalty of not more than one-year imprisonment and a $100,000 fine.

Sentencing is scheduled to take place before Judge Gordon J. Quist on September 11, 2002.

Ms. Chiara commended the agents of the Internal Revenue Service Criminal Investigation for their work in this investigation.

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