LOUISVILLE, Ky.--Larry Joel, an optometrist, former optical retailer and an inventor who is a developer of the technology used in Optical Dynamics Corp.'s lens casting systems, was arrested here Jan. 5 following an indictment by a federal grand jury in Louisville on charges of tax evasion, money laundering and false statements.

The indictment and the U.S. Attorney, Western District of Kentucky, allege that Joel sold his interest in a process for making eyeglass lenses for nearly $17 million in 1991 and that he evaded paying approximately $2.4 million in income taxes between 1995 and 2004. In 1998, Joel filed statements with the I.R.S. acknowledging that he owed taxes for 1991 to 1994. Joel paid no income tax from 1991 to 1994. In 1999, Joel filed a statement with the I.R.S. stating he had no assets, according to the indictment.

Larry Joel

The indictment also alleges that Joel used trusts and various businesses to conceal his ownership of a yacht, a residence, several expensive cars and other luxuries.

Joel has pleaded "not guilty" to all charges and was released without bail. He is scheduled for trial in U.S. District Court in Louisville on March 7. The charges could carry maximum penalties of up to 40 years in jail and a fine of $1.1 million, although actual penalties could be substantially less under federal sentencing guidelines.

Scott C. Cox, Joel's attorney, asserted Joel is innocent. "We're going to go to trial, and I plan to defend him aggressively," said Cox.

According to Paul Michelson, chief executive officer of Optical Dynamics Corp., Joel has acted as a technology consultant for Optical Dynamics Corp. (ODC) since 1997, and is a minority shareholder in the company. "Dr. Joel's tax charges are strictly of a personal nature, and are in no manner connected with ODC; nor will the charges in any way impact ODC's operations," said Michelson. "ODC's business remains strong, and we look forward to another growth year."