CECILTON MAN CONVICTED OF FAILING TO FILE TAX RETURNS

Baltimore - United States Attorney Thomas M. DiBiagio and Vickie S. Duane, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Baltimore Field Office announced that Samuel F. DuPont, 72, of Cecilton, Maryland, pleaded guilty today to charges that he failed to file federal income tax returns for the years 1998 and 1999. DuPont had been charged in a criminal information, with two counts of willfully failing to file federal income tax returns for those tax years. His guilty plea to both counts of the criminal information was accepted by United States District Judge Catherine C. Blake. Judge Blake has set sentencing for September 27, 2002. The maximum penalties for each count are one year imprisonment and a fine of $100,000.

According to a statement of facts presented by the government in support of his guilty plea, DuPont is the owner and a resident of Hexton Farms in Cecilton, Maryland. He is the sole beneficiary of three family trusts from which he received income during the years 1996 through 1999. From that trust income and other sources, Mr. DuPont's gross income was $227,518 in 1996, $256,191 for 1997, $274,039 for 1998, and $293,082 for 1999. Although he knew that he was required to file federal income tax returns as a result of that income, Mr. DuPont did not file any returns for the years 1996 through 1999, until after learning of the criminal investigation that led to the charges against him.

Based on the tax returns that Mr. DuPont filed in April, 2002, for the years 1996 through 1999, his total taxable income for those years was $982,809. The tax on that income, which Mr. DuPont has now paid, was $319,085.

The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Kathleen Gavin.