Spokane Valley attorney resigns from bar after pleading guilty to tax charges

A Spokane Valley attorney facing a federal prison sentence after pleading guilty earlier this year to filing a fraudulent 2015 tax return chose to resign from the bar this week in lieu of discipline.

Geraldine “Gerri” Newell is scheduled to appear before a U.S. District judge in October, facing a potential prison sentence of up to three years. Newell pleaded guilty in January to the tax charge after a grand jury issued an indictment indicating her law firm, Center 4 Law, had underreported income by a half-million dollars five years ago.

Newell is not in custody. Following her guilty plea, the Washington Bar Association issued a formal complaint. Rather than challenge the complaint, Newell signed an affidavit this week indicating her decision to resign from the Washington bar, where she was admitted in 1999.

A resignation in lieu of discipline is a permanent action. Newell will not be allowed to apply for readmittance to the bar in the future.

A graduate of Gonzaga Law School, Newell started her own food trailer business in 2016, according to a promotional video prepared by her alma mater. The indictment, which also included charges of bank fraud that Newell has denied, does not include allegations tied to that business.

Roger Peven, the federal defense attorney representing Newell in the tax case, declined comment ahead of the sentencing, which has already been rescheduled twice due in part to the coronavirus pandemic. The hearing is now scheduled in Spokane before U.S. District Court Judge Frem Nielsen on Oct. 15.

The government alleges Newell owes $265,000 to the IRS and is seeking a three-year prison sentence. Newell has argued for a sentence half that long, citing her lack of criminal history.

Newell’s attorney representing her in the disciplinary matter before the bar association did not immediately respond to a request for comment Thursday.