Judge orders new trial in fraud case

Monday, June 3, 2002 | 9:52 a.m.

A federal judge has ordered a new trial for Dennis Evans, a Las Vegas businessman who was convicted in November of one count of conspiracy to commit securities fraud.

Evans, along with former IRS attorney Max Tanner, was charged with defrauding about 350 investors of $3.25 million by distributing false information about two companies, Maid Aide, a residential cleaning service and a trucking company, CFE Trucking Co. of Tampa, Fla. Brokers and cold callers were also paid kickbacks to promote Maid Aide stock, the government said.

A federal jury found Tanner guilty on more than 30 counts including mail fraud, securities fraud, wire fraud, money laundering, false income tax return filings and tax evasion. He was ordered in November to forfeit $1.1 million in cash and vehicles valued at $145,000 and will be sentenced June 28.

Evans was accused by the government of "fraudulently selling and buying back Maid Aide stock to and from various friends and relatives" and "creating false applications with the National Association of Securities Dealers for Maid Aide stock to be quoted on the over-the-counter (OTC) Bulletin Board System."

But Dominic Gentile, Evans' attorney, said Evans denied knowledge of the manipulation and kickbacks.

Mark Lytle, the government's attorney, said Judge Kent Dawson's ruling on Friday was "based on the opinion that evidence that went in the (November) trial against Tanner had prejudiced Evans."

"Of the 37 counts in the indictment, Evans was charged with only one count. Therefore, (Evans argued) there should have been separate trials," he said.

But Lytle said he disagreed with Dawson's ruling and that the government is considering whether to appeal Dawson's ruling to the 9th Circuit Court of Appeals.