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Show Key figure in Clearfield housing fraud pleads guilty, Clipper learns By GARY R. BLODGETT CLEARFIELD The Davis County Clipper learned at 6 p.m. Tuesday that James B. Newman has pleaded guilty to a criminal offense that is subject to a maximum sentence of three years in prison and a $250,000 fine. Mr. Newman is connected to the Heather Estates Apartments Complex in Clearfield and the Pioneer Village Project in Salt Lake City. Newman admitted to one count of filing a false form with the Internal Revenue Service. A St. Louis-based IRS agent and James G. Martin, the assistant U.S. Attorney for the Eastern District of Missouri, have been jointly investigating the so-called so-called "Black Box" bond deals put together by Newman. Newman's guilty plea clears the way for IRS to declare $ 10.65 million of tax-exempt municipal bonds as being taxable. According to a copy writed story in the Bond Buyer Newspaper Newspap-er in New York City, Newman was associated with Southwest Capital Investment Corp., in Austin, Tex., and was involved in the transaction of Clearfield and their names appear on bond documents in the Pioneer Village Project. Matthews and Wright, who underwrote the Applecreek IV Project in St. Louis, offering a 240-unit housing complex in late 1985, also was one of the underwriters with the Clearfield Project Pro-ject which included Donaldson, Lufkin and Jenrette Securities Corp. They are participants in the Clearfield Heather Estates Pro-ject Pro-ject which the Clearfield Housing Authority presently has under investigation (See Front Page and Page 2 of the Clipper). The Clipper has been requested not to devulge federal investigation investi-gation on the Black Box bond frauds until such time as federal investigators had presented their documentation to federal grand juries throughout the United States. Since the bond buyer has now broken the story of the guilty plea of key player Newman, the Clipper plans to continue its investigation and devulge more information of investigators and make information public. |
