U.S.

Department of Justice
D
J
United States Attorney
Eastern District of California
555 Capitol Mall, Suite 1550 916/554-2700
Sacramento, California 95814 Fax 916/554-2100

Mailing Address:
650 Capitol Mall
Sacramento, California 95814

November 22, 1995

NEWS RELEASE
For Immediate Release
Monday, November 20, 1995

SAVINGS AND LOAN SWINDLER SENTENCED TO 7 YEARS

IN PRISON FOR FAILURE TO PAY COURT ORDERED
RESTITUTION

SACRAMENTO, CALIFORNIA -- U.S. Attorney Charles J. Stevens

announced today that THOMAS E. NEVIS,53, of Yuba City,
California, was sentenced last Thursday to seven years in prison
and restitution in the amount of $2 million as a result of the
revocation of his probation for willfully failing to pay
restitution to the Federal Deposit Insurance Corporation (FDIC).
NEVIS was remanded immediately to the custody of the Bureau
of Prisons.
NEVIS was convicted in 1989 of 24 felony bank fraud charges
in the District of Oregon arising from the collapse of State
Federal Savings and Loan of Corvallis. He initially was
sentenced to a term of imprisonment for two years, to be followed
by probation for a period of five years, with restitution in the
amount of $2 million to be paid in annual installments of
$400,000 as a condition of probation.
In 1991, NEVIS' sentence was reduced to imprisonment in a
work release facility for six months, solely and exclusively to
allow him to work in order to pay the $2 million restitution.
His first installment of $400,000 was due in June, 1993. When he
failed to make his June, 1993 installment payment, the FDIC
immediately began civil proceedings to collect the restitution.
Shortly thereafter, the Justice Department opened an invest-
igation to enforce the restitution order. A petition to revoke
NEVIS' probation was filed in August, 1994. NEVIS also failed to
pay restitution in June, 1994 and June, 1995. Following a 5 day
hearing in April, 1995 and post-trial briefing by the parties,
NEVIS' probation was revoked on September 14, 1995 and the matter
set for imposition of judgment and sentence yesterday.
 NEVIS also waived indictment and pleaded guilty to one count
of conspiracy to defraud the United States by obstructing and im-
peding the Internal Revenue Service in the assessment and col-
lection of tax (Klein conspiracy), in violation of Title 18,
United States Code, Section 371, and one count of making and
subscribing a materially false corporation tax return, in
violation of Title 26, United States Code, Section 7206(1).
NEVIS stipulated that the amount of underreported income
combined with the fictitious capital losses exceeded $1,208,000,
with a net tax loss of between $411,000 and $550,000. Sentencing
in the criminal tax case is on February 1, 1996.
In addition, the United States filed a civil suit against
NEVIS, Goshute Corporation, NBC Leasing, Inc. and South Butte
Warehouse, Inc. seeking a declaratory judgment that Goshute, NBC
and South Butte had operated as alter ego nominees for defendant
NEVIS, and for money damages in the amount of $36,000,000 due to
fraudulent transfers of assets to them by NEVIS to defeat collec-
tion of the restitution by the FDIC.
The civil suit also asked for the appointment of a receiver
to liquidate the nominees and pay off creditors. The United
States also sought an injunction to prohibit NEVIS from conducting
business in any nominee names, from holding title to
property in any name other than his own and from engaging in any
scheme to defraud the FDIC from the collection of the $36,000,000
judgments by means of mail or wire fraud, or by making false
statements.
Civil judgment was imposed yesterday upon the corporate
nominees in the amount of $36,000,000 and they were placed into
receivership. Nevis was permanently enjoined from conducting
business activities in the name of nominees, or holding property
in any name other than his own, or engaging in any schemes to
defraud the FDIC from the collection of their judgments by way of
mail fraud, wire fraud or false statements.
This case was investigated by Special Agent Bridgett
O'Keeffe of the Criminal Investigation Division of the Internal
Revenue Service. These cases were prosecuted by assistant U.S.
Attorney Robert M. Twiss.