United States Attorney Richard B. Roper
Northern District of Texas

JUDGE ORDERS MAN TO SERVE TWO YEARS IN FEDERAL PRISON
FOR FAILING TO REPORT NEARLY $400,000 IN LAWSUIT SETTLEMENT PROCEEDS
ON INCOME TAX RETURN

DALLAS — Malcolm M. Kelso was sentenced today by U.S. Senior District Judge A. Joe Fish to 24 months in prison and ordered to pay a $50,000 fine, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Judge Fish ordered that Kelso surrender to the Bureau of Prisons on October 7, 2008.

Kelso pled guilty in May 2008, to one count of making and subscribing a false tax return under penalty of perjury. He admitted that, in May 2004, he received checks totaling $399,981.80 in proceeds from the settlement of a lawsuit, Broadcast.com Inc. v. Universal Image, Inc., et al., No. 04-01402 (162nd Dist. Ct. Dallas Co.). Those proceeds were income to Kelso.

In September 2006, Kelso signed and filed his 2004 individual income tax return, knowing that he did not report the $399,981.80 in proceeds from the settlement of the lawsuit as income.

U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorneys Dayle Elieson and Alan Buie prosecuted the case.

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