A Hamilton financial consultant pleaded not guilty Tuesday to charges of defrauding the government and filing false tax returns for clients.

        Nancy L. Wallace, 54, faces more than 40 years in prison if she is convicted of a conspiracy charge and 12 other counts of assisting in the preparation of false tax returns.

        She also faces more than $3 million in fines.

        Officials at the Internal Revenue Service said Ms. Wallace committed some of the offenses while she was on parole for embezzling money from a pension fund in 1994.

        The indictment against Ms. Wallace describes her as a management consultant and tax preparer who represented several wealthy clients in the Hamilton area.

        According to the U.S. Attorney's office, Ms. Wallace filed false returns for clients from 1994 to 1997.

        She is accused of conspiring to reduce tax payments for clients by creating false or inflated invoices for her services.

        She also is accused of disguising her clients' investments with her as deductible business expenses.

        Ms. Wallace entered the not guilty plea in U.S. District Court. She was released on a $5,000 bond and placed on electronic monitoring to ensure she would not leave the Hamilton area.

Jorg case left unsettled
The testimony: Key moments in the trial
Witness: Owensby untouched by Caton
Chief can't campaign in uniform
City may bolster plans for security
Debate focuses on riots, revival
Fuller, Luken debate details
Halloween is on, with care
Lawyers, officers hear call
Outside funds for UC research reach record
Research funds rise 19% for UC fiscal year
Stained glass reflects chapel's varying faiths
Tristate A.M. Report
UC cancer center gets $60M boost
United Way names grant winners
HOWARD: Some Good News
RADEL: Yummy treats
SAMPLES: In memory
Birth injuries called not serious
Consultant charged with tax fraud
Deerfield Twp. official takes job in Columbus
Fairfield Twp. race focus: growth
House GOP proposes sales-tax holiday
Some voters face 5 local issues
State officials lukewarm to plan for interchange
Boone may chip in on roadwork
Call-ups take toll at home
'Common sense' on anthrax urged
Kentucky News Briefs
Ky. quintuplets 1st since 1914