In 1987, Thomas Mower and his wife Leslie D. Mower established Images and Attitudes, an MLM company selling health and beauty products. The company later became Neways in 1992, marketing products as "chemically safer than other brands."
This marketing strategy initially fueled Neways' growth. However, the company soon faced regulatory issues. Regulators forced a recall of a weight loss product after it was found to contain a medical dose of furosemide, a prescription diuretic. Furosemide is known as Lasix, used for congestive heart failure and edema. It is also on the World Anti-Doping Agency's banned drug list for its potential as a masking agent.
Operations appeared to stabilize until 2003. That year, Thomas and Leslie Mower were indicted for failing to pay personal income tax on approximately $3.2 million. The government alleged the Mowers cheated the Internal Revenue Service out of more than $1 million by not reporting commissions from Neways' overseas divisions. They specifically failed to report $3.2 million in personal income from divisions in the United States, Australia, and Malaysia, avoiding $1.3 million in taxes.
The Mowers claimed the money constituted loans from Neways Australia to Neways USA, asserting they did not personally benefit. But the then-Director of Neways Australia testified he knew of no loans to the U.S. corporation. He stated he personally mailed monthly commission checks directly to the Mowers at Neways' Salem office. Defense attorneys then argued the unreported income was a mistake, not a crime, because the Mowers had not "spent the money like drunken sailors."
A federal jury disagreed. In March 2005, the Mowers and their former corporate attorney, James Thompson, were found guilty. Thompson faced accusations of doctoring fake loan documents. In September 2006, Thomas and Leslie Mower, along with Thompson, received jail sentences. Thomas Mower was sentenced to 33 months in federal prison, followed by 36 months of supervised release.