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Ex-broker indicted on tax charges By Chris Bristol A former Medford stockbroker once investigated and disciplined for investment fraud has been indicted on federal charges of tax evasion. Lew Aytes, of Jacksonville, was indicted by a federal grand jury Thursday on two counts of filing false income tax returns. Aytes, 51, is accused of "substantially" under-reporting his income of $166,806 in 1993 and $194,223 in 1994, according to a press release issued Friday by the office of Kristine Olson, U.S. attorney for Oregon. The maximum penalty on each charge is three years in prison and a $250,000 fine, plus a "special assessment" and the costs of prosecution. Aytes originally came under scrutiny in 1996 when allegations of investment fraud at Medford�s Smith Barney branch surfaced involving a type of securities called limited partnerships. The National Association of Securities Dealers eventually fined Aytes $100,000 and suspended him for 18 months, saying he overcharged clients and sometimes failed to disclose the transactions were off the Smith Barney books. No criminal charges were filed, however. Another broker and a manager at Smith Barney also were fined by the NASD for their roles in the case. In a separate case, state regulators barred Aytes from working as a broker. In the current case, federal prosecutors said Aytes tried to evade taxes by partially laundering illegal proceeds from the investment scheme via checks issued to family members. A trial date has not been set. The case was assigned to U.S. District Judge Malcolm Marsh in Portland. Aytes does not have a phone listing and could not be reached for comment Friday. In a related matter, Aytes attorney and family friend Sandra Sawyer became ensnared in the case when the Oregon State Bar accused her of ethical misconduct. The bar eventually suspended Sawyer for nine months, accusing her of violating the bar�s rules governing conflict of interest. She is the wife of retired Jackson County judge Loren "Buzz" Sawyer. The suspension was put on hold pending automatic review by the Oregon Supreme Court, which heard arguments in the case last month. A decision has not been announced. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.