Peter Max charged with tax fraud

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: : Copyright 1996 United Press International. All rights reserved. : The following news report may not be republished or redistributed, in whole or in part, without the prior written consent of United Press International. : : (ED: fixing -- tax evasion charge was on more than $1 million in income sted evasion of $1 million in taxes) : (ED: complete writethru -- adding statement from max, details; fixing date of world's fair, 1992 sted 1982) : Peter Max charged with tax fraud : NEW YORK, June 5 (UPI) -- Pop artist Peter Max, who first gained national fame designing psychedelic posters in the 1970s, was indicted Wednesday on conspiracy and fraud charges for allegedly evading taxes on more than $1 million in income. : Manhattan federal prosecutors say Max, 58, and his former accountant did not report income the artist received from more than $1.1 million in art sales between 1986 and 1991. As part of the fraud, they allegedly concealed Max's use of cash and barter of art to buy real estate. : In addition to the conspiracy count, Max was charged with two counts of income tax evasion in connection with his 1988 and 1989 federal income tax returns, and with signing false returns for 1988 through 1991. : Ruben Gorewitz, the former comptroller of Max's art business from 1990 through 1993, is also charged with helping Max file false returns. : In a statement, Max called the charges "groundless" and said they are based solely on the testimony of Gorewitz. He claims Gorewitz made a plea bargain deal with the government in exchange for testimony against his former employer. : "These charges run counter to my many years of public service to this country, including pro bono art donations to the 50th anniversary of the United Nations, the rededication of the Statue of Liberty and countless other governmental, humanitarian and environmental causes," Max said. : "I am proud to have served my country for so many years and I am shocked and saddened by the government's baseless conduct. : "I intend to vigorously fight these groundless charges in court." : If convicted, Max and Gorewitz each face up to five years on the top count of conspiracy and a fine of $250,000 on each count. : Max's first psychedelic poster sold nearly 3 million copies, and over the years he has won more than 60 awards for his art. He also designed a postage stamp, and was picked as an official artist for the 1992 World's Fair. : His annual portraits of the Statue of Liberty, which he began painting on Independence Day in 1976, have also gained wide acclaim. : The 1981 portraits painted for President Ronald Reagan on the White House lawn led to national efforts to renovate the statue. : : :

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