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Oregon man arrested in tax-defier case

02:13 PM PDT on Monday, September 1, 2008

By Associated Press

ASHLAND, Ore. (AP) -- A hearing is scheduled Tuesday to determine whether an Ashland man can be released on bail pending a trial on charges related to what the federal government calls the actions of tax defiers.

KGW graphic

Authorities say 59-year-old Eugene Casternovia was arrested Thursday and remains in jail, accused of conspiracy to commit money laundering.

A U.S. Department of Justice injunction filed in April says protesters associated with Pinnacle Quest International, a Florida business, sold tax evasion material at venues such as resorts and trade shows.

His wife, Kathryn, says Casternovia argues against the income tax system but pays other taxes.

She says the couple has lived in Ashland 25 years and has owned restaurants.

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