DATE: Thursday, March 6, 1997               TAG: 9703060308

SECTION: LOCAL                   PAGE: B9   EDITION: FINAL 

SOURCE: BY HARRY MINIUM, STAFF WRITER 
DATELINE: NORFOLK                           LENGTH:   50 lines

NBA REFEREE FROM BEACH PLEADS NOT GUILTY TO TAX EVASION CHARGES

National Basketball Association referee Henry C. ``Hank'' Armstrong will fight federal felony tax evasion charges, his lawyer says.

Armstrong, 54, of Virginia Beach, pleaded not guilty Wednesday in U.S. District Court. Magistrate Judge Tommy E. Miller released Armstrong on his personal recognizance.

A jury trial, which could take up to a week, was set for June 12.

``We feel confident that Mr. Armstrong will be vindicated when all of the evidence is presented,'' said Franklin A. Swartz, Armstrong's lawyer.

Swartz declined further comment.

Armstrong declined comment, as did U.S. Attorney Jim Metcalfe.

Armstrong was indicted Feb. 12 on charges that he under-reported income and over-reported travel expenses.

Indictments allege that Armstrong ``downgraded'' first-class airline tickets provided for NBA travel to cheaper coach-class tickets, kept the difference and illegally failed to pay taxes on the money.

Two other NBA referees - George Toliver of Harrisonburg and Mike Mathis of Cincinnati - have been indicted. More indictments are expected from the 2-year-old Internal Revenue Service investigation.

If convicted, Armstrong could face a maximum of 18 years in prison and a $1.4 million fine.

Federal documents allege that Mathis failed to report income of $69,000 and Toliver $47,000. Federal documents only call the amount Armstrong is alleged to have hidden as ``substantial.''

The Washington Post quoted sources as saying Armstrong allegedly failed to report more than $100,000.

Federal guidelines call for the trial to be held by May 14, but Armstrong's request for a later trial was granted. Swartz said the additional time was necessary because the case is complex and he needs time to travel to interview witnesses. Metcalfe did not object.

The referees have been suspended by the NBA pending outcome of their trials, but they continue to collect their salaries and benefits. Armstrong, a former Cox High teacher and coach, was in his ninth NBA season. ILLUSTRATION: [Photo]

BILL TIERNAN/The Virginian-Pilot

NBA referee Henry C. ``Hank'' Armstrong of Virginia Beach arrives at

the federal courthouse in Norfolk Wednesday. Armstrong pleaded not

guilty to federal felony tax-evasion charges. A jury trial was set

for June 12. KEYWORDS: TAX EVASION

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